LBS and PVII Fee Reporting

Background

The LMA Claims Committee (LMACC) has sponsored and funded the Gemini development and implementation on behalf of the market to respond to the market’s legacy challenges associated with a lack of visibility and oversight of expert performance and spend, the poor data quality that was recorded as part of the claim’s management process, and the high cost associated with multiple expert fee management services.

This bulletin sets out a recommendation that is endorsed by the LMACC and LMAOC (Lloyd's Market Association Operations Committee) to deliver a centralised solution to accurately validate and process expert spend and VAT liabilities to LIC and LBS and Part VII claims for both open market and DA business.

We know that:

Gemini will resolve LBS/LIC reporting issues and;
the contract is to standard Market terms in alignment with other centrally managed LIMOSS services.

LIC Claims & VAT

Following engagement with LIC and the market, the LMA wish to both highlight and endorse the use of Gemini to support and overcome the expert VAT recording and reporting challenges, that are currently creating a commercial risk to managing agents and the market, by way of inaccurate or duplicative VAT payments.

Gemini can support LBS open market and binder claims, integrated with the current claims agreement process and in collaboration with experts, DCAs, and managing agents.

The current process for managing and reporting VAT is manual with no validation and or reconciliation to ensure that the correct VAT is captured at source accurately and reported via the claim’s agreement process. Gemini can facilitate:

accurate, data driven identification of applicable tax rates at source, between expert, TPA and Gemini
enhanced and accurate expert, tax, and regulatory reporting via Gemini and Lloyd’s Claims Reporting Suite (CRS)
reduced propensity for duplicative tax payments
automated reporting of data to managing agents and or TPAs, via API, or a data export and;
centralised access for Lloyd’s, to enable LIC oversight, audit, and reporting of invoices and tax.

Whilst Lloyd’s have extended the reporting in the CRS (Insights Hub) to cover LBS and Part VII reporting, the data that is extracted is dependant on the quality of the data captured within the claims process.

The Gemini FAQ document provides more detail on the Gemini solution for LBS and PVII reporting on experts fees, covering:

an overview of how Gemini delivers a solution (as validated by LIC) for reporting on expert spend and VAT on open market claims with no change to process
a comparison of the “as is” process for recording VAT on expert fees versus the Gemini process, and associated benefits this offers for both submission/validation, processing and reporting
a high level process flow that that explains the system driven validation that occurs to ensure the expert records the correct VAT rate/amount in Gemini (which is then used to ensure the data populated in ECF is accurate) and;
a proposal for how the existing Gemini platform can be utilised reusing the existing logic to deliver a solution for DA claims (which will necessitate a change to process for DCAs).

Lloyd’s are supportive of the LMAs endorsement to utilise a live and market funded platform and service to resolve challenges for both the market and LIC in a centralised and effective manner.

Tim Bowling
Senior Executive, Claims