I know many people have been predicting a surge in the birth rate as a result of lockdown. But I am not sure this is what they had in mind. At least I hope it isn’t, otherwise they should seriously consider seeking some form of help. If only Bernie was on better terms with Tino Asprilla we wouldn’t have to deal with the thought.
Still, the Lord giveth and the Lord taketh away. Whilst Tino’s condom crisis may constitute a bit of a hit to the Colombian economy, the laws of supply and demand seem to be creating a small boom in other sectors.
Don’t forgexit Brexit
Although you would never tell from the news or the press, life is going on despite lockdown. And it doesn’t all take place in an Ikea car park off the north circular. As an aside, I had my only halfway bearable trip to an Ikea at the Drury Way store (where NHS Covid-19 testing is taking place). Due to my general dislike of England’s national sporting teams (apart from cricket I have a distressing lack of patriotism) I allowed myself to be dragged there whilst England were beating Denmark in the round of 16 at 2002 World Cup. Empty. Totally different experience from normal.
But I digress.
Lloyd’s Europe is continuing to progress its plans for ensuring you are all complying with EIOPA Recommendation 9. These were the proposals they set out in the Old Library session many of you attended back in those innocent days when one could still joke about coronavirus. So, in no particular order…
- Many of you will have received the addendum to existing TOBA’s for UK brokers which was released last week. This is asking you to confirm that you will not present “impacted business” (contracts with an EU policyholder with an EU risk) to Lloyd’s Europe through a broker that is not authorised in EU after 1st October.
- Simultaneously, you will be awaiting the new EuroTOBA (some changes to conform with Belgian law) that EU authorised brokers need to sign to be released. LIIBA has received a draft for review and will be providing comments back early next week. Expect publication soon after that. The deadline for both this and the addendum is to have them agreed by end May (I have 26th in my head, but then again I often do. 26th May being the anniversary of Arsenal beating Liverpool at Anfield in 1989 to win the league. Which was also the day after my last day at school).
- We are awaiting the CAA endorsement’s release – which will achieve much the same things for coverholders. Publishing of this is expected soon, although there are operational considerations regarding processing that LIIBA is discussing with Lloyd’s currently.
- Bulking lineslips. Detail regarding the mandated use of DA SATS has been published to the market today via Lloyd’s bulletin Y5287 (attached). LIIBA will be supporting membership on the detail and will provide updates as discussions with Lloyd’s, LIMOSS and the LMA progress.
Any questions on this please contact Jackie.firstname.lastname@example.org. As many of you will realise, Jackie predominantly wrote this section. The idea that I actually know what a bulking lineslip is being too ridiculous to contemplate…
The beer essentials
Many of you may have read that Grupo Modelo is ceasing to brew limetastic Corona lager due to the coronavirus outbreak. You will have read this because that is how it has been reported. The truth being, unsurprisingly as this was a story in the UK press, a bit different. Grupo Modelo has stopped brewing any beer as this has been deemed a non-essential service by Senor Lopez Obrador and his crew. Which is awful news. Modelo Negro is one of my favourites and hard enough to get hold of here as it is…
What’s the name of the claim
As foretold yesterday, we are in a position today to foretell a communication coming out from Lloyd’s on changes to the various claims schemes. There are a number of initiatives introduced to ensure Lloyd’s claims handling adapts to be more efficient:
- under the Lloyd’s Claims scheme, extending the threshold of claims that can be dealt with as lead only under the scheme, from £250k to £500k (and for Property Treaty and Energy from £500k to £1m);
- streamlining claims handling decisions on co-lead binders; and
- standing down the need for Proof of Loss documents (POLs) in many instances
At time of writing it is not certain whether the detail will be with you this afternoon or Monday. But it will be there. There is some natural concern that sending it out Friday afternoon is not a great idea (“Throwing it out with the trash” everybody’s second favourite West Wing episode behind “Post hoc ergo procter hoc”). But given there is some interesting data emerging from PPL about the amount of underwriting that is happening in the middle of the night, I think the structure of the working week is pretty fluid currently.
The attached email chain sets out FCA’s response to a number of issues we raised with them in the light of the new working normal. As mentioned yesterday, this is sign of a regulator that is trying to be helpful. The outstanding queries around client money rules and admin fees will come to you as soon as we have them.
Drowning in a VAT?
As covered the other day, the process for taking advantage of the Government’s VAT holiday this quarter is relatively simple – just don’t pay them. But attached some Q&A on the full scope of the programme.
Are we nearly there yet?
Bored this weekend? Need something to occupy your mind and suppress the desire to go and mingle with the hoards in a London park? Then we have the solution – the 137 page Lloyd’s Part VII market design document (see attached). You can’t accuse them of not being thorough. The glossary specifies that the abbreviation “UK” stands for “United Kingdom”. Glad that is cleared up, it could have caused no end of confusions. Enjoy.
HMRC has published the process for firms with less than 250 staff to recover statutory sick pay payments to staff that have contracted Covid-19 or are self-isolating and unable to work.
The hand of Pod
If you find you have finished the entire detail of Lloyd’s part VII transfer, lost your mortgage on the virtual Grand National and got through Gary Lineker and Alan Shearer watching old football (or Joseph on The Show Must Go On YouTube channel depending) then try this. In the last podcast of this series – The Missing 80% – Making Deals on Trade in Services – Chris Horseman (known as Apocalypse in the dressing room) is joined by Dr Ingo Borchert (Dringo), Julia Magntorn Garrett (Pat) and Sebastian Benz (Mercedes) to discuss the services sector and its implications for the future of UK trade.
This has gone on far, far too long. Enjoy your weekends trapped inside with nothing to do. I am off to judge the final of “PR disasters – Covid-19 special” on Channel 5. It is Premiership footballers vs Banks (insurance lost in the semis)