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FCP FAQ's

FCP Frequently Asked Questions

These FAQ, along with information elsewhere on this website and the LIMOSS FCP Academy, are designed to help all market users of FCP. If you have a question that is not answered please contact: servicedesk@LIMOSS.London

These FAQ's are categorised by function they may affect. Click to expand.

Account Replenishments

How would an MA determine if their Vitesse funding account needs additional funds?

An MA will need to assess the appropriate funding level with their finance teams and/or brokers based on expected claims activity in relation to their FCP binder(s). The funding account balance should be regularly reviewed to ensure the balance is at an appropriate level.

Why are replenishments of an MA Vitesse funding account weekly in FCP?

Replenishment of a funding account is triggered by the funds falling below a pre-agreed threshold level. Flexibility in liquidity management is a key benefit of FCP.
Weekly replenishment enables MAs to hold less money in the funding account at any one time, freeing it up for other use.

What if the weekly replenishment in Vitesse is not sufficient to prevent a Funding Account from being under-funded e.g. during CAT season?

MAs can transfer funds directly to Vitesse, increasing the balance in their Funding Account.
Details of how to do this are shared as part of the onboarding material.
MAs can use the configurable alerts within the Vitesse platform to ensure they are informed of a low syndicate
funding account balance. MAs should regularly review their funding levels - especially during CAT season.

How can an MA track funding levels?

MAs can use the configurable alerts within the Vitesse platform to ensure they are informed of a
low syndicate funding account balance. They are also able to log into the Vitesse portal to view
funding movements and payments of claims. The MA funding report can also be scheduled to be sent to defined users via email/SFTP on a regular basis, removing the requirement to log in to the Vitesse portal. For further information on this, you should contact Vitesse.

How long does the weekly funding account replenishment process take?

Lloyd's central Settlement and Trust Fund Office (STFO) is the mechanism which moves funds from Syndicates trust accounts to traditional loss funds. Under FCP these funds will be moved to Syndicate funding accounts held in Vitesse. Funds will be received (by Vitesse) 3 - 4 days after STFO triggers the movement. MAs will receive an Advice notice 2 days before the debit from the trust accounts.

What actions should be taken if the MA identifies that the BDX does not match the Vitesse cashbook record of payments made in that month?

The MAs should contact the DCA responsible for submitting the BDX and ask them to correct or explain any differences. DCAs are required to perform a front end reconciliation against the Vitesse payment account cashbook and the BDX. Vitesse provide training and support for this and a supporting evidence template for the DCA to notify of any expected differences ie. Refunds and recoveries, TPA fees.

Account Reconcilliation

What are the roles of the Lead and Follow MAs if they find unreconciled items during the backend reconciliation?

The Lead MA should contact the DCA if any reconciliation is believed to be caused by a monthly BDX not matching the FCP payment report for any specific payment account. The Lead should share their findings with all Follows. Follows who detect a frontend reconciliation issue should raise it with the Lead MA for that binder. Lead and Follow MAs should reconcile their own funding accounts to ensure any timing differences are noted for the following months reconciliation

What happens if BDX submission delays affect the ability to reconcile signings to Vitesse funding activity?

Speak to relevant DCAs and brokers to determine the status of BDX submissions to resolve the delays. You can also use the DA Claims Status Tracker to view the BDX progress.

Why does a DCA need to perform a monthly reconciliation of BDX to the Cashbook?

The BDX must reconcile with the Cashbook to ensure no reconciliation issues are caused downstream, in technical accounting for the MAs.

What does a DCA need to do when reconciling the BDX and Cashbook at the end of the month?

DCAs must ensure that the BDX and Cashbook claim payments match for each claim. For full best practice please refer to the training material.

What is the Vitesse funding report?

This is a real-time statement showing money movements in a MAs funding account in Vitesse. It shows debits from the funding account to fund payments to beneficiaries, made by DCAs, as well as credits to top up the funding account after its balance drops below a configured threshold. The funding report will also show any reverse flows, i.e., where recoveries are recredited onto the funding account.

How does FCP impact a DCA’s and a broker’s role in the creation, reconciliation, and submission of a bordereaux?

There is no change to existing processes. The DCA will still create the BDX and submit it to the broker and/or MA, as per their existing process. The DCA will need to ensure the BDX reconciles to the Vitesse cash book, and they will continue to be responsible for getting the broker to sign off on the BDX.
The main change to the end-to-end process impacts the brokers. They will need to ensure that all FCP BDX are submitted as non-cash items in ECF. Their ability to do this will vary from broker to broker, but they should be able to annotate the ‘narrative’ section in ECF, to say ‘***non-cash***’.

How often should MAs do the back-end reconciliation?

We recommend this be done monthly as MAs and DCAs to get used to the new way of working.
It is the responsibility of the MA to ensure appropriate control over finances and accounting.

What is the Back Office Matching service’?

Details of the current Back Office Matching service are at https://limoss.london/fcp-back-office-matching. For details of the proposed enhanced matching service, email servicedesk@LIMOSS.London

Benefits

How soon should MAs expect to see the benefits of FCP?

The market was involved at every stage of the development of Faster Claims Payment. The Vitesse platform was selected via RFI, with market participants involved in the assessment. The FCP solution was developed with a market working group, including a market pilot in 2021 and 2022.
As a live service, market input is more important than ever. Advice on how MAs, DCAs and Brokers can get involved in future development of FCP is available here: https://limoss.london/fcp-market-user-group

Binders

How does Lead MA know if all Follows will be Lloyd's Syndicates?

The Lead MA should work with the broker when determining if a binder should be onboarded to FCP. The broker should include the LMA BAA endorsement into the contract when all parties agree, some brokers are including the endorsement in all contracts and removing if the final decision is not to be FCP, but a traditional loss fund. The final point for the Lead to confirm this is within DCOM, the broker should flag the binder as FCP in DCOM for the Lead MA to then review and approve.

Placement

Binders can easily be transferred to FCP mid-term.
The process for doing this is described in this training material. Additional guidance is available from FCPsupport@vitessepsp.com

Roles and responsibilities

What role do MA's take in flagging a binder on DCOM as FCP?

The Lead MA & Broker should discuss during contract negotiations whether the binder should be processed via FCP. Once agreed, the broker will upload the binder information to DCOM and tick the FCP flag, thereby confirming that the binder meets all FCP criteria. (This is only necessary for binders created on or after 26 July 2021. Binders created before 26 July 2021 do not need to be registered in DCOM before transferring to FCP)
Following this, when checking the contract details in DCOM, the Lead managing agent should also ensure the FCP flag is ticked.
Please refer to the market support section in the DCOM platform for knowledge articles on how to do this at https://marketsupport.lloyds.com/csm?id=llol_csm_index&service=dcom
The release of DCOM (DCOM 1.5) ensures all data entered against an FCP binder is validated by the broker at point of entry.
Once the contract is flagged in DCOM, the Lead MA must then submit a new Payment Account Application form, as detailed here: https://academy.limoss.london/topic/3-fcp-new-placement-or-renewal-of-a-binder/

Why do MAs have to enter in the narrative within the private comments in ECF?

MAs have to enter in the narrative within the private comments in ECF that a FCP BDX should be processed as non-cash even though it is already in the broker comments, because this is an additional safeguard to ensure the DXC technical processing team doesn't process the BDX as cash and trigger duplicate fund movements.

Binder placement and mid-term binder change

What is best practice for selecting binders?

Best practice is to select new binders, or those that are due for renewal although FCP can support previous years. Please see the Delegated Authority Claims Guidance on the Lloyd’s website for further details. Regardless of the binder that is selected, the bordereaux must be in line with the current version of the Coverholder Reporting Standards and completed within the monthly financial cycle with few or no queries

Company

Is Vitesse regulated?

Vitesse PSP is an authorised e-Money institution (EMI) regulated by the FCA (Reference 900646) and subject to the Electronic Money Regulations 2011 (EMRs) and Payment Services Regulations 2017 (PSRs). Authorised EMIs are subject to the full regulatory regime, including the capital, safeguarding, operational resilience, security and conduct of business requirements.
For further information please contact FCPsupport@vitessepsp.com.

What are Vitesse’s business continuity plans?

Vitesse has robust business continuity plans in place.  For further information please contact FCPsupport@vitessepsp.com.

Contractuals

DCA agreement

Will the LMA update their standard DCA agreement to take account of FCP?

The LMA is currently looking at updating the standard DCA contract wording for FCP and will publish any amendments through their normal channels.

Lineslips

Will the LMA produce a standard clause to be added to Line Slip contracts for FCP?

The LMA is currently looking at updating wording for line slips and will publish any amendments through their normal channels.

Costs

What is the cost of using FCP?

FCP is set up as a market service administered by LIMOSS. MAs are charged for using the service. There is currently no charge to DCAs or Brokers.
The cost of the service for each MA is detailed in their Market User Agreement (MUA) and consists of both a subscription element and transactional costs. MAs wanting to a copy of their MUA should speak to their internal contracts team in the first instance, or email servicedesk@LIMOSS.London

Currencies

What payment currencies does FCP support?

Payments can be made in over 100 Vitesse supported payment currencies, which allows claimants to be paid in the currency of the binder – or any other supported currency if they prefer.

What Funding Currencies does FCP support?

FCP supports 14 Funding currencies.
Daily Urgent or Weekly Scheduled ARCS top-ups are available in USD, GBP, and CAD. Monthly Scheduled ARCS top-ups are available in AUD, CHF, DKK, EUR, HKD, JPY, NOK, NZD, SEK, SGD and ZAR. Daily/weekly funding for these currencies will be available once Lloyd's STFO supports daily top-ups for these currencies.

ECF

Why do brokers have to enter in the narrative within the broker comments in ECF that FCP BDX should be processed as non-cash?

This is to ensure the ECF entry is processed as non-cash and no fund movements are triggered.

What happens if the BDX for FCP is processed as cash?

The broker would need to return the cash back to MAs. This would happen by putting a refund transaction onto ECF, as is the process today.

What happens if a broker system doesn't support automatic entry of non-cash BDX on to ECF? What's being done about this for FCP?

Some market systems used by brokers are unable to automatically submit BDX transactions to be processed as ‘non-cash’. LIIBA and the Future at Lloyd’s team are engaging with market system vendors to plan for this additional functionality, to be added to their platform offering.

FCP Scope

What business can FCP currently be used for?

FCP is currently available for DA business only and must be 100% Lloyd's Market.
The latest information regarding the scope of FCP is available on the FCP website: https://limoss.london/fcp
Further market communication will be shared when FCP is available for 100% Lloyd's Market.
Improved claims settlement and payment processes will be part of the Velonetic International Claims Orchestration Service (ICOS): https://www.velonetic.co.uk/

Does FCP support Lloyd’s Insurance Company S.A. (LIC) business?

LIC is not currently in scope for FCP, although FCP does support funding and payments in EUR .
Further market communication will be shared when LIC business is in scope.
The latest information regarding the scope of FCP is available on the FCP website: https://limoss.london/fcp

Does FCP support CAD Lineage?

Lineage is the reporting and settlement of Canadian binding authority business. FCP does not currently support Lineage. Further communications will be sent to the market, when this is in scope.
The latest information regarding the scope of FCP is available on the FCP website: https://limoss.london/fcp

Feedback and Development

The market was involved at every stage of the development of Faster Claims Payment. The Vitesse platform was selected via RFI, with market participants involved in the assessment. The FCP solution was developed with a market working group, including a market pilot in 2021 and 2022.
As a live service, market input is more important than ever. Advice on how MAs, DCAs and Brokers can get involved in future development of FCP is available here: https://limoss.london/fcp-market-user-group

Fees

How are Vitesse Subscriptions & Transaction Fees collected from MAs?

The charges for FCP consist of Subscription and Transaction Fees, as set out in the Market User Agreement (MUA) issued to all MAs. Both Subscriptions & Transaction Fees are collected via STFO outside of the FCP platform and do not appear in the FCP reports. All subsTransaction Fees are collected monthly/quarterly by LIMOSS, via the ARCS process. For more details about the collection of FCP charges, contact the LIMOSS Service Desk

Funding

Alerts & Notifications

How do MAs manage their Funding alerts?

An MA can set and amend balance alerts on their Funding Accounts at any time. Multiple alerts can be set on the same account to help MAs closely monitor their funding balances. Advice on managing Funding Levels is available from Vitesse.

Insufficient Funds

What happens if there are insufficient funds in an MA's Funding account, when a DCA attempts to make a payment?

When a DCA attempts to make a payment - but there is insufficient funds in one or more of the linked MA Funding Accounts - the payment will fail. The DCA will receive an on-screen message informing them to contact the relevant MAs. The MAs themselves are not notified, so it's vital that the DCAs promptly inform all IA payments attempted and fails. This is why it is important that MAs regularly check their funding account levels. You can set alerts to notify a funding account is below a certain threshold.

Can the Funding Account be changed on an active Payment Account?

Yes, it is possible to change an active Payment Account’s Funding Account to a Funding account in a different currency. Consideration should be taken when doing this as the currency change could impact refunds/recoveries as well as the reconciliation process. MAs should speak to Vitesse for further advice.

Is interest payable on balances held in MA's Funding Accounts?

Money held in Funding Accounts is covered by the Electronic Money Regulations 2011 (EMRs). Part 45 of the EMRs prohibits the payment of interest on the holdings of electronic money. For this reason, no interest is payable on Funding Account balances.

Operational Resilience

What is operational resilience and what processes do Vitesse have in place?

For details of resilience testing and risk management methods, contact Vitesse or LIMOSS Service Desk. All MAs, DCAs and Brokers may wish to conduct their own BCP planning and testing when using any market service, such as FCP. MAs and Brokers may also wish to discuss resilience issues with their market association.

Payments

Does FCP support cheques/checks or echeques/echecks?

FCP currently supports eChecks in USA only. Paper cheque payments are not supported in any territory. Support to eChecks in AUD and CAD is currently on the FCP backlog. If you would eChecks to be supported in other territories, please contact the LIMOSS Service Desk

Does FCP allow payment of claims in all territories?

Yes, FCP is global. Vitesse operate a large network of in-country accounts, allowing direct access into local payment schemes in over 100 currencies and over 170 countries and territories. In addition, using the SWIFT network, Vitesse can pay to anywhere your bank can.

Do claim pay-outs still have to be handled by brokers, before reaching a beneficiary?

Brokers are not required to transfer loss funds or cash calls on FCP as funds are automatically drawn from managing agent accounts and can be paid to the beneficiary directly. Brokers may still be involved in the notification and processing of a claim, but do not need to process the settlement payments. Brokers should ensure that all FCP BDXs are submitted as non-cash, so no cash movements are made.

Is a loss fund required for the binder under FCP?

No, the purpose of FCP is to remove the requirement for traditional DCA held loss funds. The FCP solution includes the set-up of one funding account per MA/Syndicate/Currency with Vitesse. Funds for payments for each binder loaded into FCP will be drawn from this account and it will be topped up on a regular basis, as and when the balance in the funding account falls below the pre-determined threshold. For further information on the replenishment process, please refer to the LIMOSS training material https://academy.limoss.london/

How is payment information sent to Vitesse?

The DCA can submit payment details through the Vitesse Portal OR via API integration (Application Programming Interface). API use is recommended, as this allows DCAs to integrate their claims management systems directly into the Vitesse payment platform.

How does the Vitesse platform know the binder splits to draw the right amount of funds from the right Syndicate accounts?

For any new payment account, the Lead MA provides details on the binder, including the binder splits. Vitesse are also able to validate this data against the data entered into DCOM by the binder broker.
In future, FCP should be able to use this information directly from DCOM which will remove the need for the Lead MA to provide it to Vitesse.

When DCAs send payments via Vitesse are large payments blocked? 

Yes. FCP uses ‘payment limits’ to control the maximum value of a single payment that a DCA can process. It is the Lead MA's discretion to determine the payment limit when setting up a new payment account. This value can be varied at any time by the Lead MA. As best practice, the payment limit should be equal to, or higher than, the Delegated Authority Limit.
Where DCAs attempt to initiate a payment above the payment limit, the payment will fail. DCAs must then contact the lead MA, who will request Vitesse adjust the payment limit increase. See module 5 of the FCP LIMOSS Academy for further advice: https://academy.limoss.london/topic/5-fcp-payments-to-beneficiaries/

If there is a payment that exceeds the Payment Limit, is it only the Lead who needs to agree an adjustment of the payment limit?

To avoid unnecessary delays to payment processing, the Lead MA has the authority to request changes to the payment limit without requiring approval from follows. It is at the Lead MA's discretion to handle any messaging with follows.

How do claims payments that are out of authority limits work in FCP?

For payments that are out of DA limits, there is no change to existing processes. The DCA in question will need to obtain the relevant approvals from the MA, as per their standard operating procedures. If the payment also exceeds the FCP ‘Payment Limit’, the process above should also be followed.

Can the Vitesse platform integrate with a DCAs CMS system?

Yes. Contact the Vitesse team at FCPsupport@vitessepsp.com for further information

In FCP, does a payment account have to be set at the UMR level only – or can a different payment account be set for each section of the policy?

FCP Payment accounts can be set at UMR level OR at section level. Where signed lines are the same across all sections, MAs can choose to have one payment account at the UMR level or one payment account for each section. This can be set by the lead MA when registering the payment account. Where signed lines differ per section on the same UMR, separate payment accounts are required so that percentage shares are stored correctly against each payment account. This also allows a different DCA to be appointed for each section.

Does FCP allow payment of claims in all territories?

Yes, FCP is global. Vitesse operate a large network of in-country accounts, allowing direct access into local payment schemes in over 100 currencies and over 170 countries and territories. In addition, using the SWIFT network, Vitesse can pay to anywhere your bank can.

Can an MA authorise a payment from a Payment Account?

No, Neither the Lead nor the Follow MAs can authorise a payment from a payment account. This can only be performed by the appointed DCA. In exceptional circumstances, eg. the insolvency of the DCA, Vitesse are able to support with authorisation of all parties concerned. For further details and advice, please contact Vitesse on fcpsupport@vitessepsp.com

Performance

What are the SLAs for FCP?

Onboarding to the FCP platform
KPI – upon receipt of customer information Vitesse will complete KYC and due diligence in 10 working days.
KPI – MAs/DCAs on boarded within 2 working days on completion of Due Diligence /KYC process.
Platform provision
Platform available 99.9% measured on a per calendar month.
Party Management in the FCP platform
MA set-up within 2 working days upon completion of the KYC /due diligence process.
Changing a Payment Limit - 1 Working Day
Bank Account set-up - Payment and Funding Accounts
Vitesse will set-up any accounts within 1 working days of receipt of correctly completed and approved account creation forms.
MAs can see a full list of SLAs in the MUA.

What should we do if we believe Vitesse have breached an SLA?

Any suspected breach of SLA should be raised with Vitesse in the first instance - and, for escalation, with LIMOSS Service Desk (servicedesk@LIMOSS.London).

Reporting

What Reports are available for FCP performance?

LIMOSS provide regular MI reports to the Market User Group and Steering Groups. To request access, email LIMOSS Service Desk

Subscription Business

How can subscription business be loaded onto FCP?

FCP supports singleton and subscription business.
1. For subscription binders, FCP requires all managing agents on the binder to be signed up to FCP
2. A list of all MAs and their FCP status is available here.
3. Training material for adding a binder to FCP is here. MAs/Brokers wanting to add a binder can contact FCPsupport@vitessepsp.com. MAs can also speak direct to their Vitesse Relationship Manager.

Velonetic

What processes and service levels are in place to monitor whether Velonetics is correctly processing transactions as non-cash?

Velonetic carefully monitor processing on a daily, weekly, and monthly basis with all personnel informed of trends or reoccurring issues. This includes processing non-cash items as cash. Velonetic have a daily control report that flags transactions that have the words non-cash in the broker comments and have not been processed as such.
The processing of transactions by Velonetic is covered under the FERN Agreement between MAs/Brokers and Velonetic. This is outside the scope of FCP and should be escalated internally via your Velonetic Client Manager. For visibility, any examples where FCP is impacted due to incorrect Velonetic processing should be passed to the LIMOSS Service Desk.