Data Changes to RSA SME Properties Policies on Acturis

IMPORTANT INFORMATION ABOUT CHANGES TO HOW THE DATA IS USED UNDER eTRADE RSA SME PROPERTIES FOR ACTURIS* SOFTWARE HOUSE CUSTOMERS

Effective: 11th March 2019

When RSA adopted the industry standard for electronic trading (eTrade), decisions were made on how to use that data and we relied on guidance from brokers and Polaris, the body responsible for the eTrade standard.

For Properties, our proposition for property owners and landlords, that meant that we treated the reinstatement values provided by each software house as the Declared Value, subject to the addition of a Day 1 Uplift, where requested. An example of which is shown below in Example 1.

The Acturis software house is the only one that we support, which allows for both the Reinstatement Value and the Sum Insured to be entered but has chosen to submit the Sum Insured to insurers for rating. As a result, unless corrected the effect has been as shown in Example 2.

Rather than wait any longer for changes to the industry standard, RSA is implementing a change to our product for Acturis* users only. After which, we will treat the submitted value in the same way as other insurers on the Acturis platform, as shown in Example 3

This will impact you and our customers as their policies fall due for renewal and any new quotations that you submit after the effective date where the cover is arranged on a Day 1 basis. All other Acturis imarket RSA SME Properties policies are unaffected.

New Business

Please ensure that the correct values are included in each field and if you have been aware of this issue and applying a workaround, this is no longer required and data should be recorded in accordance with Example 3.

Mid Term Alterations

Any transaction after the effective date but before the first renewal date, will continue to be treated on the original basis and does not change how the values are recorded.

Renewals

For any case that was incepted on the basis of the Example 2 above, this will change as follows, assuming a rate of index linking of 3.0%;

Provided that no other change is made to rating information or claims experience, the initial invited renewal premium will preserve the previous adjustments and premium and apply index linking and standard increases.

Should you wish to compare this to our New Business premium, please use the Copy RFQ function. If this is cheaper than our initial invited renewal premium, we understand that you may wish to lapse the original policy and accept the new quotation.

Because this issue does not effect all our customers, we are not communicating via a Notice to Policyholders but one is available on our eTrade Change Library, which can be downloaded by you for inclusion in your renewal correspondence, as an optional attachment.

These changes do not alter the fact that underinsurance and average conditions could apply in the event of a claim if the current reinstatement values exceed the declared value. Therefore, you may wish to use this as an opportunity for our customers to review the current reinstatement value of their property.

For residential buildings, there are online reinstatement tools available at https://calculator.bcis.co.uk/ from the B.C.I.S. and for commercial or mixed use premises, they may wish to consider whether to instruct an R.I.C.S. qualified surveyor to carry out a valuation.

*This only applies to our imarket product (RSA SME Properties) and not those hosted by Acturis on our behalf (RSA Properties)

If you are unsure if your clients are affected by this issue, your usual Acturis contact should be able to advise you if they have configured your account for imarket or for their hosted RSA products.

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