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FCP

Faster payments, safer capital, smarter treasury

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FCP

Overview

FCP represents the arrival of a transformative payment and treasury management technology to the Lloyd’s DA market. FCP gives managing agents (MAs) greatly enhanced flexibility and oversight in their capital management and provides all participants with real-time visibility over claims payments as well as an improved claimant payment experience.

What is FCP?

FCP is a transformative payment solution which allows Delegated Claims Administrators (DCAs) for Lloyd’s binding authority business to make payments on request, drawing on managing agent funds directly. This removes the need for loss funds and the associated cash calls for funding deficits. The solution leverages the Vitesse payment platform, paying claims in minutes instead of days and weeks - and in local currencies. 

FCP is now a “live” market service as a result of managing agents’ commitment to adopt and use the solution. LIMOSS is supporting the Future at Lloyd’s and Vitesse adoption teams to continue to onboard market participants to FCP in the coming months. 

What binders are in scope now?

FCP can be used now for the following types of Delegated Authority binders:

  • All Classes of Business and all years of account
  • Payments in over 100 currencies – including e-checks (USA only)
  • Lloyd's singleton and subscription binders
  • New AND active binders – even with existing claims activity (E.g. Run-off)
    • In Scope: Binders created before 26 July 2021 do not need to be registered in DCOM before transferring to FCP
    • In Scope: Binders created on or after 26 July 2021 must be registered in DCOM (except for Line Slip binders which do not need entering in DCOM)
  • Policy order must be placed 100% in the Lloyd’s market
    • In Scope: Co-Leads where binder/section is in scope for FCP and all participants are Lloyd’s MAs
    • In Scope: Continuous Contracts
      • A payment account application form will be required at renewal
    • Out of Scope: Lloyd’s Europe (LIC) and Scheme Canada / Lineage
  • Same signed lines across all sections OR different signed lines on each section
  • Same DCA for all sections or different DCAs per section
  • Funding accounts in 14 currencies:
    • In Scope: USD, GBP, or CAD Funding Accounts with Daily Urgent or Weekly Scheduled ARCS top-ups
      • Note: Canadian Dollar (CAD) accounts are not currently being topped up via the automated ARCS funding process. MAs are therefore required to complete a manual top up of their CAD accounts.
    • In Scope: AUD, CHF, DKK, EUR, HKD, JPY, NOK, NZD, SEK, SGD, ZAR Funding Accounts with Monthly Scheduled ARCS top-ups only)
    • FCP expands scope with 11 new currencies
  • Coverholders acting as DCA
    • In Scope: Coverholders with claims settlement authority, who do not net off premiums and claims
    • Out of Scope: Coverholders with claims settlement authority, who do net off premium and claims
  • Service Companies
    • In Scope:
      • A BDX must be processed and submitted via ECF
      • Consideration should be taken per territory to ensure all standards are met
  • Consortia
    • In Scope:
      • 100% placed in the Lloyd's market​
      • There must be a BDX processed and submitted via ECF ​
      • Accounts must be opened via the Vitesse online payment account application form (Binders do not need registering in DCOM)
  • Line Slips
    • In Scope:
      • A DCA or Coverholder must be appointed
      • A BDX must be processed and submitted via ECF
      • Must be 100% placed in the Lloyd’s market
      • Accounts must be opened via the Vitesse online payment account application form (Binders do not need registering in DCOM)

What are the benefits of FCP?

FCP brings benefits to all stakeholders including MAs, DCAs, Brokers and – most importantly – our market clients:

  • Reduce reliance on traditional loss funds and recover trapped capital: enable Managing Agents (MA) to retain greater control of capital by significantly reducing the amount of money held with third-party and unlocking funds previously tied up in loss funds.
  • Greater financial control and real-time visibility of claims payments: Funds are centrally held in Tier 1 banks, providing MAs with real-time visibility of claims payments and fund usage while strengthening governance, reporting, and financial control.
  • Faster payments to policyholders: delegated Claims Administrators (DCAs) can draw funds directly from MA accounts, enabling faster settlement and improved customer outcomes.
  • Reduced operational effort and simplified fund management: removes the need to establish and manage traditional loss funds and reduces reliance on manual cash call processes.
  • Global claims payment capability: enables claims payments in 100+ local currencies, allowing DCAs to pay policyholders quickly in their local markets.
  • Lower transaction costs and improved operational efficiency: removes the need for brokers to make costly wire transfers to DCAs while streamlining the overall claims payment process.

For a full Cost Benefit Analysis, bespoke to your organisation, please email FCP or speak to your Vitesse Relationship Manager