IRIS User Group Development IRIS-ENH Risk Code Entry IUG-0983, SN-300107457

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Authorised By Name Authorising Role Date Signature Alan Chisham AD&S Project Manager 13/02/07 Signed copy on file Daryl Yeats Project Manager 14/02/07 email in project folder Mick Hobbs Director 14/02/07 email in project folder John Colwell Financial Director 1502/07 email in project folder IRIS User Group Client

Prepared by: Simon Wray Office: XGIS Endeavour Drive Basildon Essex SS14 3WF Issue Date: 15th February 2007

© Xchanging Global Insurance Systems Ltd. 2007

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Trademark Information Company, product, or brand names mentioned in this document, may be the trademarks of their owners. 300107457-Risk Code Entry-Business Requirement Document Control Revision History Version Description/Reason for Change Date 01 Created 09/12/07 02 Migrated to new Xpert Template 12/02/07

Circulation List Name Business Area For For Agreement Review Sign-off to proceed IRIS User Group Client X X X Alan Chisham AD&S X X Daryl Yeats IS X X Mick Hobbs IS X X X John Colwell IS X X X

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1 Business Requirement...... 4 1.1 Business Context...... 4 1.2 Description of the Requirement...... 5 2 Development Effort and Costs...... 7

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1 Business Requirement

1.1 Business Context The IUG has requested an enhancement – specifically for Lloyd’s insurers - to ‘Control Entry of Risk Codes’ within the IRIS Policy Input application. The Entry of Risk codes on a policy should be validated against a list of appropriate Risk codes for a business Unit. This is intended to allow Syndicates to monitor their performance against the business plan submitted to Lloyd’s.

The original wording of the requirement as submitted by the IRIS User Group was as follows:

1.1.1 Summary Entry of Risk codes on a policy should be validated against a list of appropriate risk codes for a Business Unit.

1.1.2 Business Requirement Definition When entering a policy there should be validation such that Lloyd’s Risk codes can only be entered when the code is valid for the Business Unit and Year of Account, as defined within the business plan which was submitted to Lloyd’s.

There is already a file in IRIS called “Risk Code Validation X-Ref” (UCRCREP) that stores a list of valid values for Syndicate, Year of Account, Unit and Risk code. This file should be used when validating the Risk code on a policy so that the entered value must be compatible for that combination of Syndicate, Year of Account and Unit.

A method is required to allow the configuration of a system rule that can be set to limit the period over which this validation is to take place, based on the Year of Account. This is because validation data may not be present for old years. E.g. at Novae the UCRCREP file only contains data for Years of Account of 2002 and onwards, therefore the validation should not be enforced for Risk codes on policies with a Year of Account of 2001 or prior.

1.1.3 Business Justification Risk codes for business units are advised to Lloyd’s each year within a Syndicate’s business plan. If IRIS prevented incorrect Risk codes being entered on policies then there would be no need to run exception reports to find the erroneous policies.

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1.2 Description of the Requirement BR1) The client will determine whether this new Risk code validation is required, and the types of policy to which it will apply. The client may specify a starting Year of Account, before which the validation will not apply.

BR2) The client will specify valid combinations of: Syndicate, Year of Account, Business Unit and Risk code. Any number of Risk codes can be entered for each combination of Syndicate/Year of Account/Business Unit.

BR3) Within Policy Input, the Risk code – on the Policy, the Syndicate Line or the Risk Code Split table - will be validated against the list of valid combinations.

BR4) This enhancement will not prevent Syndicates entering any ‘dummy’ Risk Code Splits1 that are needed to accept USM transactions.

1.2.1 Other Considerations In developing this IUG enhancement, there are other constraints that must be considered.

1. Customer Configurations: The relevant database fields are held on the Syndicate Line, but are not populated in all customer configurations of IRIS. Where they are not currently populated, it will be necessary to enable the fields or map them through configuration. The distribution of the relevant fields across different customers is as follows:

Client Syndicate Year of Account Unit Risk Code Abacus SYZMCD SYZMYR N/A POPC01 POPC04 Limit SYZMCD POUGYR N/A AXRSCD (many per risk) LSML POZMCD From POICDT N/A POPC04 Novae SYZMCD POYOAC SYUNCD SYRS01 Illium Liability None POYOAC None None

2. Message Validation: The Risk Code Split function allows multiple Risk codes to be recorded against a policy. Where the Underwriting Signing Message (USM) is validated against the Risk Code Splits table, users enter ‘dummy’ 0% Splits for any missing Risk codes in the table, in order to provide data for the USM to match against and so accept the closing.

IUG members should also take note of the following items before activating this enhancement.

3. Historic Data: Risks entered before the validation may contain invalid data. If the new validation is switched on, it will not be possible to amend these policies until the Risk code is valid.

4. Reconfiguration: Where the current configuration is single-Syndicate, it may be necessary to reconfigure the Policy Input function to map or enable the relevant fields.

1 A ‘dummy’ risk code split is where a risk code split is entered with a zero split percentage.

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1.2.2 Scope This enhancement will allow Risk codes to be validated against a table of Syndicate/Year of Account/Unit code/Risk codes. The Risk code to be validated may be on the Syndicate Line, on configured code fields and on the Risk Code Split function.

1.2.3 Outside Scope The enhancement will not allow validation by classification codes other than Unit code (e.g. Class of Business code or Branch code).

This enhancement does not extend to any additional validation of Risk codes entered on Claims or Closings.

Only the IRIS GUI programs will be enhanced. There will be no program updates to any IRIS character-based system programs or reports.

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2 Development Effort and Costs At this stage we have not completed a full analysis of how your business requirements can best be met by our system, hence we cannot estimate what the cost will be of any modifications which may be required. However, we can give an indication of the effort likely to be involved in delivering the modifications together with an estimate of the costs of the next stage. This stage involves the production of a detailed Functional Specification, at the end of which we will be able to give an estimate for the costs of any development work.

An indicative effort for the development (excluding the full specification for which a fixed price figure is given below) is 43 days.

Estimate for the Functional Specification

Full Specification 11 days

This estimate is valid for 90 days, and is an approximate figure only. The specification will be produced on a time and materials basis.

The completed specification and quotation will be sent to you for confirmation and authorisation before any software changes are made.

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