0. INTRODUCTION
1. SCOPE
   1. Functional definition
   2. Field of application
   3. Principles
2. REFERENCES
3. TERMS AND DEFINITIONS
   1. Standard terms and definitions
   2. Message terms and definitions
4. MESSAGE DEFINITION
   1. Segment clarification
   2. Segment index (alphabetical sequence by tag)
   3. Message structure
      1. Segment table

This specification provides the definition of the Reinsurance core data message (RECORD) to be used in Electronic Data Interchange (EDI) between trading partners involved in administration, commerce and transport.

The RECORD message will convey to partners involved in the placing of a reinsurance contract or endorsement in a structured format all the required core data that form the basis of the negotiation process and of the ensuing contract (such as : contract sections and their criteria, clauses, coverages, deductibles, deductions and premiums, parties involved).

The Reinsurance core data message may be used for both national and international applications. It is based on universal practice related to administration, commerce and transport, and is not dependent on the type of business or industry.

The RECORD message has been built up from a set of flexible modules which allow the specification of the function of the message, the contract details, the subdivisions within it and for each, its main characteristics (coverages, deductibles, deductions, premiums and applicable clauses), the party(ies) involved with tier involvement, special conditions and the response to them. The message can either be used in a "minimalist" manner - in which case only few data need to be provided (e.g. when first submitting a risk or when declining a risk), or in a "maximalist" way - in which case all applicable data can be provided (normally towards the end of the placing process). In addition to these business functions, the RECORD also links or points to various types of supporting documentation requested or available to supplement the EDI document.

RECORD is one of a complimentary pair of messages that support the placing of reinsurance business. RECORD carries the core business data related to the contract, whilst RELIST carries the list of items covered under the terms of the contract.

The RECORD message performs multiple functions in the placing process, and therefore consists of a set of flexible components which can either be switched on or off - depending on the type of transaction within a specified scenario. These components include:

• a header that allows to identify the transaction function, to reference the reinsurance contract version with its relevant data, and the parties involved in the transaction;
• a group that allows to identify contractual or section criteria (class of business, type of peril, type of activity, location, clauses, currencies, etc.) and other characteristics (period, type of cover, etc.);
• the major subgroup within this section allows to identify coverages, deductibles, premiums, deductions and other relevant provisions per section or for the whole contract. Each can be either expressed as an amount, a rate, a quantity (e.g. number of lines, number of reinstatements) or a duration (e.g. indemnity duration), and they can be linked to more specific sub-criteria (e.g. a section for class of business 'aviation', with coverages relating to 'luggage', 'passenger liability', etc.);
• a further group allows to refer to information that supports the placement process and that is either related to the whole contract or to one or more sections in it; it can be used both to request and to supply additional information.
• the last major information component in the RECORD contains party information; here again, multiple functions are foreseen:

1. rendering of information about the parties involved in the original policy (policy holder, insurer, co-insurers, broker);
2. rendering of information about the parties involved in the reinsurance contract (brokers, reinsurers); this functionality is sometimes referred to as the 'market list', and it is mainly used by brokers to inform cedents of the progress of the placement (reinsurers with share and conditions); at the end of the placing process, this list becomes the final placement list. Such a list can however perform others functions as well: a cedent may supply it to the broker as his 'preferred marketing list', a broker may present it to the cedent as his 'proposed marketing list', a cedent or broker may include it in his offer to reinsurers to show which other reinsurers have already signed on, etc. For this functionality, a small group with market specific details needs to be used.
3. an interesting aspect is that it is possible to report on 'composites' of reinsurers and their decomposition: a 'pool' with all its partners, a 'stamp' with the reinsurers behind it, a broker in a foreign market with the reinsurers that have signed via him, etc.
4. requesting a participation from a party - either as an amount, a percentage, a quantity (e.g. number of lines) or as a mixture of them; various options exist here: either only the format is expressed, the expected participation is given or a minimum-maximum range is offered. Additionally, previous written and signed lines can be specified for information.
5. responding to an offer - either by a quotation or an order which may either be conditional or unconditional; in case of a conditional order, a set of conditions can be specified for each potential order (e.g. I take 8% if condition A & B are fulfilled or 6% if only condition B is fulfilled).
6. responding to conditions; this is primarily done by quoting back the condition reference, supplemented with free text or by resending a new offer package with the condition references attached and a flag 'condition met' against each.

The functions that the RECORD currently caters for are:

pre-quotation cycle:

• authorisation to build quotation request proposal
• propose quotation request proposal
• decline to build quotation request proposal
• accept quotation request proposal
• decline quotation request proposal
• request to modify quotation request proposal

quotation cycle:

• quotation request
• quotation
• decline to quote
• accept quotation
• decline quotation

order cycle:

• order offer proposal
• order offer proposal acceptance
• decline order offer proposal
• request to modify order offer proposal
• request for participation
• decline to participate
• unconditional participation
• conditional participation
• accept participation
• accept conditions
• decline participation
• request to negotiate participation
• signed line advice
• request to modify contract synopsis, contract wording, closing, etc.
• accept contract synopsis, contract wording.
• closing

endorsement cycle:

• endorsement request
• cancellation notice - provisional
• cancellation notice - definite
• decline endorsement request
• (unconditional) acceptance of endorsement request
• conditional acceptance of endorsement request
• endorsement notice
• request to negotiate endorsement
• decline all conditions
• withdrawal notice of cancellation
• advice cancellation method

generic:

• request additional information
• supply additional information (including wording, certificate and RELIST)
• request to modify additional information
• decline acceptance of supporting information
• party involvement report (proposed or actual)
• final bid request
• placement on hold
• placement cancelled-NTU (not taken up)
• placement released
• placement closed
• last bid offer expected
• final acceptance

See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 1.

See UNTDID, Part 4, Chapter 2.3 UN/ECE UNSM - General Introduction, Section 2.

Introduction

'Placing' is basically the term used for the whole negotiation cycle to get a risk or a set of risks reinsured in the form of a reinsurance contract. As this process is identical to the endorsement cycle (whereby modifications to a contract such as extensions in time, in number or value of risks to be covered, in special conditions go through a negotiation cycle), this cycle has also been included in the placing process. Some other similar business cycles such as the cancellation, renewal have equally been covered.

The placing process is essentially not different from any buyer-supplier bidding process, although this simple fact is too often dissimulated behind complex procedures and specific terminology: the objective of the process is to find 'suppliers' that are acceptable for the buyer and that meet his requirements.

In this sense, the RECORD message could be used by any other industry in which a contract is negotiated.

Placing sub-processes

Bidding round 1: the process is initiated by the prospective buyer who composes a package that consists of his tentative requirements along with any information that may help the prospective supplier to make his bid. This additional documentation may take any form and may comprise statistics, plans, bidding terms, original policy documentation, etc. This 'package' is transmitted to selected potential suppliers for a first bidding round. This sub-process is closed off upon reception of the bids from the suppliers. It is generally referred to as the 'quotation stage'.

Bidding round 2: the buyer has at this point two options: either he has received one or more firm bids that fulfil his requirements, in which case he confirms the acceptability of the bids to the relevant supplier(s); or else he uses the received bids to re-formulate his requirements, thus initiating a second bidding round.

This second round - generally referred to as the 'order' stage

• follows essentially the same pattern as the quotation stage, and it may very well be the only stage in the placing process; this is e.g. the case when a contract is renewed without obtaining a quotation first.

The process is closed off when the order offer is either accepted or rejected - possibly after more bidding or negotiation rounds.

The process may consist of a double loop instead of a single one in case the buyer requests another party (broker) to perform the placing process on his behalf; again, there is no essential difference: the buyer will first select in an initial bidding process the party to which he wishes to confer this duty. Afterwards, the process continues as described above with an additional feed-back loop from the broker to the buyer.

The endorsement process

The endorsement process is the one that is used to agree any type of change to the originally agreed contract; this may range from simple period extensions or cancellations to quite complex process types such as mid-term market changes. The process may be such that one type of endorsement request leads to another type of endorsement (e.g. a request for change in conditions may lead to a market change).

The endorsement process largely follows the same pattern as the placing process: the buyer (or supplier) requests the change from the other party, who in one or more discussion rounds agrees or refuses.

Main parties involved

• Cedent/ceding company/reinsured/retrocedent

The insurance or reinsurance company that seeks protection against a risk in the form of reinsurance or retrocession buying; hence the term 'buyer' is sometimes equally used; where the cedent is a reinsurer who retrocedes (i.e. re-sells) accepted business, the term 'retroceding company' is more commonly used - but the flows are identical, and therefore both are considered in the underlying document.

• Reinsurer

Company supplying reinsurance protection for agreed terms and conditions (the terms 'underwriter' and 'assuming company' are equally covered by this definition); if the reinsurer protects risks coming from another reinsurer, the flow is called 'retrocession'. Apart from these terms, there is little or no difference between the flow for 'cession' or 'retrocession' placing.

• Broker

Intermediary between cedent and reinsurer. His function in the placing flows is essentially to ensure that a contract or endorsement with acceptable terms and conditions for the required cover is established, and that acceptable reinsurers are found to take part. Additionally, he will establish and facilitate the communication between the parties involved in the placing process. In return, he is paid a part of the premium that the cedent pays to the reinsurer, called the 'brokerage'.

This section should be read in conjunction with the segment table which indicates mandatory, conditional and repeating requirements.

0010 UNH, Message header

A service segment starting and uniquely identifying a message. The message type code for the Reinsurance core data message is RECORD.

Note: Reinsurance core data messages conforming to this document must contain the following data in segment UNH, composite S009:

0020 BGM, Beginning of message

To indicate the type of message, its function and its identifying reference.

0030 DTM, Date/time/period

To specify dates and times relating to the transaction and to the process stage. The 'transaction creation date and time' and the 'contract version date and time' are required. The use of the other values depends on the type of transaction.

0040 AGR, Agreement identification

A segment primarily used to specify the placing stage (i.e. quotation, order, endorsement) and - in case of an endorsement - the endorsement type. It can also be used to give some high-level indicators regarding the nature of the risk (e.g. contract type).

0050 RFF, Reference

The segment must be used to specify the risk reference: this is the key reference that the risk will carry from the start to finish throughout each of the cycles - supplemented with the placing stage type and the contract version date/time stamp which can both change. Other references that may be specified at this level include: the 'link reference' which links this specific placement to the placement of one or more other contracts (required to indicate that a previous contract is renewed as a set of linked contracts); the 'password access reference' which may be required in some implementations to access the risk data; the 'authorising market reference' which is required in some implementations of the endorsement process (London practice only).

0060 GEI, Processing information

Used to specify at header level whether information has been modified. If both underlying policy and contract have the same data, then there is no need to specify all the insurance policy data: they are simply listed under the reinsurance contract, and a flag here indicates this fact. The segment can equally be used to indicate - specifically for an endorsement - if the data need to be made available to the bureau members (London practice only). The 'reason for declining' can be specified here in a coded format. A further code can be used to identify the character of the transaction. Lastly, codes can be used to indicate the scope of the requested common account protection.

0070 FTX, Free text

Mainly used to specify the reason of the transaction in textual format. Additionally, it can be used to specify the contract name and to explain the nature of the revision or the endorsement. Even though the message allows for text, it should be used sparsely.

0080 Segment Group 1: PNA-BUS-RFF-SG2

This group must be used to specify sender and receiver. Additionally and when relevant, the information originator and third parties receiving a copy of the message can equally be specified.

0090 PNA, Party identification

To specify the sender and receiver of the transaction, and optionally third parties such as the information originator (in case the message is simply passed on) and courtesy copy receivers.

0100 BUS, Business function

To describe the business function of the party named.

0110 RFF, Reference

To specify contract references for the party named. In case of placement or endorsement of a single contract, the contract reference will be specified. In case of a process that involves a group of contracts (in reinsurance terms: set of layers or bouquet), the contract group reference will be specified. In case of renewal, the previous contract reference(s) need to be specified. The original policy reference will only be used in case of a facultative (i.e. individual risk) placement whereby the policy details are not given as they are a subset of the contract data. The parent contract reference is specified when a declaration is placed. A reference may equally be specified in a response flow to indicate the reference number of the transaction to which this RECORD is a reply or addition.

0120 Segment Group 2: CTA-COM

This group is used to specify contact persons or departments within the named party.

0130 CTA, Contact information

To specify the contact within the named party.

0140 COM, Communication contact

To specify the means of communicating with the named party contact.

0150 Segment Group 3: IDE-GEI-ICD-RFF-ATT-CUX-FTX-SG4-SG6-SG7-SG8-

SG14 This group is used to perform all basic reporting either at contract level or per section, i.e. - section criteria for sections;

- coverages, deductibles, premiums and deductions; - other types of provision (settlement terms, account submission terms, deposit use terms, etc.); - parties and their involvement. Clarification: The maximum of 99 repeats has been introduced for practical reasons, and is to be understood as an overall limit on the total number of sections and subsections in any one contract. Even though in theory some data could be provided at contract level (e.g. commission, brokerage) and others at section level (e.g. coverages, deductibles), it is strongly advised to provide coverage, deductible, deduction and premium data per section - even when this represents a certain amount of duplication - in order to ease treatment by computer systems.

0160 IDE, Identity

To identify the contract and/or section level.

0170 GEI, Processing information

To indicate what type of general conditions apply and to what the amounts in the section relate (e.g. 100 % of policy, cedent share of original risk, ceded share of risk, etc.). The segment can also be used to indicate whether the primary source of the information is paper-based or electronic.

0180 ICD, Insurance cover description

To describe the cover for the section.

0190 RFF, Reference

To specify the contract reference in case a contract group reference was given in the header. It can also be used to indicate the layer/surplus number of the cover if relevant. The policy reference can be specified if a section is used to describe a policy.

0200 ATT, Attribute

To specify the class(es) of business, the type(s) of occupancy, the peril(s), the subject(s) of insurance and/or the origin of business that have been used as section or contract level criteria. The segment may also be used to specify the technical nature of the (part of the) contract within this section.

0210 CUX, Currencies

If all amounts in the section or contract are expressed in the same currency, the segment can be used to specify this by means of the reference currency; in case conversion agreements are pre-arranged, further repeats can also be used to specify original currencies (calculation base currency) and their exchange rate.

0220 FTX, Free text

To specify the criterion used for the section or contract in textual form, and/or to give further cover details. It can equally be used to render a section heading.

0230 Segment Group 4: PER-SG5

This group is used to specify any period relating to the section or contract - in particular various coverage periods.

0240 PER, Period related details

To identify any periods relating to this section or contract.

0250 Segment Group 5: DTM-GEI

This group allows to specify dates or durations of the coverage period.

0260 DTM, Date/time/period

To indicate dates and/or duration for the contract coverage. The first repeat of the date/time/period segment will typically be used to render the 'start date' of the period. It can however also be used to specify the period duration. The second repeat is typically to be used to render the end date of the period. In case the first segment was used to specify the duration, then the second one will be used to specify the (estimated) end date and time.

0270 GEI, Processing information

To give date or period related indicators such as 'date included', 'date not known', etc.

0280 Segment Group 6: LOC-MEA-ADR

This group allows to specify covered locations in terms of country and address or (additionally) in terms of longitude and latitude.

0290 LOC, Place/location identification

To identify the geographical scope(s) or specific coverage location(s) that are used as selection criteria for this section. In case the section is in respect of a voyage, the various ports may be specified here as well.

0300 MEA, Measurements

To express a location in terms of longitude and latitude.

0310 ADR, Address

To express the risk location in address format if more appropriate.

0320 Segment Group 7: CLA-APP-MOA-PCD-DTM-GEI-FTX

To specify clauses related to the section or contract and important related information.

0330 CLA, Clause identification

To identify which clause(s) are related to the contract or policy.

0340 APP, Applicability

To specify the applicability of the clause.

0350 MOA, Monetary amount

To express amounts for the clause.

0360 PCD, Percentage details

To express the rates applicable for the clause.

0370 DTM, Date/time/period

To indicate the clause reference data (e.g. the date from which cancellation starts), and/or the clause duration. The exact meaning will depend on the type of clause, e.g. retroactive date (sunrise clause), cessation date (sunset clause), etc.

0380 GEI, Processing information

To indicate that full details are to be found in the contractual documentation.

0390 FTX, Free text

To provide a clause description.

0400 Segment Group 8: PRV-APP-MOA-RTE-DTM-QTY-FOR-CUX-CLA-GEI-

FTX-SG9-SG10-SG11-SG12-SG13 This group is used to render all the basic data that are involved in a contract or section: coverages, deductibles, deductions and premiums. Additionally, it can be used to specify other types of proviso such as settlement terms, bordereau and account submission terms etc.

0410 PRV, Proviso details

To render proviso data of any nature.

0420 APP, Applicability

To describe how the proviso applies.

0430 MOA, Monetary amount

To express the proviso and/or the proviso basis as an amount.

0440 RTE, Rate details

To express the proviso as a rate.

0450 DTM, Date/time/period

To express the proviso as a duration or period.

0460 QTY, Quantity

To express the proviso and/or proviso basis (mainly for premium) as a quantity. Additionally, it can be used to specify the total number of reinstatements if the proviso = 'reinstatement coverage'.

0470 FOR, Formula

To specify the formula used in calculating the proviso.

0480 CUX, Currencies

To render original currencies and pre-arranged exchange rates.

0490 CLA, Clause identification

To specify the clause(s) to which the proviso relates.

0500 GEI, Processing information

To indicate that full details are to be found in supporting documentation. It can also be used in case the proviso = reinstatement coverage to express that the number of reinstatements is unlimited, and/or that the reinstatement premiums need to be calculated in the loss currency. It may also be used to specify general indicators related to the proviso such as reserve deposit release method, proviso frequency, loss adjustment expenses modality, reserve deposit use, etc.

0510 FTX, Free text

To provide textual details relating to the proviso.

0520 Segment Group 9: BAS-APP

A group of segments to provide details of the basis of the proviso and how the basis is applied.

0530 BAS, Basis

To specify one basis for the proviso.

0540 APP, Applicability

To specify how the basis is to be applied.

0550 Segment Group 10: ATT-PCD

The group will be used to link specific perils, classes of business, subject of insurance amongst other to a proviso.

0560 ATT, Attribute

To specify the class of business, origin of business, subject of insurance, peril or type of occupancy that the proviso is in respect of.

0570 PCD, Percentage details

To specify the percentage that the accounting class represents in the total reporting.

0580 Segment Group 11: LOC-MEA-ADR

To specify one or more locations linked to the proviso.

0590 LOC, Place/location identification

To specify one location linked to the proviso.

0600 MEA, Measurements

To describe a location in terms of longitude and latitude.

0610 ADR, Address

To describe the location to which the coverage, deductible or premium relates as an address.

0620 Segment Group 12: PYT-PCD

The group will typically be used to specify settlement terms when settlement terms or reserve is the proviso. The group can also be used if parts of the amounts due need to be settled using various methods (e.g. 20 % of loss reserve deposit via Letter of Credit, 80 % via bank transfer).

0630 PYT, Payment terms

To specify settlement terms.

0640 PCD, Percentage details

To specify the percentage of the total due that needs to be settled.

0650 Segment Group 13: RFF-MOA-PCD-DTM

This group serves multiple purposes : Each proviso must be assigned a number in order to make identification easier. The group may also be used to indicate the reinstated cover number for which details are given. The group as such can be used to specify instalment details in case that settlement terms is the proviso. Finally, the group can also be used to render commission related tables - particularly when they are using variable steps.

0660 RFF, Reference

To specify the relevant references.

0670 MOA, Monetary amount

To specify the amount of the instalment.

0680 PCD, Percentage details

In case instalments are reported, the segment may be used to specify the percentage of the total amount to be settled in the instalment. The other usages are for commission tables as outlined in the group usage clarification.

0690 DTM, Date/time/period

To specify instalment related dates.

0700 Segment Group 14: PNA-ATT-ADR-CTA-COM-RFF-SG15

To specify parties involved in the contract or policy, their shares and conditions.

0710 PNA, Party identification

To identify the name of any party related to the reinsurance contract or policy.

0720 ATT, Attribute

To specify further attributes of the party.

0730 ADR, Address

To indicate one or more addresses of the party.

0740 CTA, Contact information

To specify the name of the authorising underwriter.

0750 COM, Communication contact

To identify means of communication with the authorising underwriter.

0760 RFF, Reference

For responding parties to specify their quote reference or (previous) contract references.

0770 Segment Group 15: STS-RFF-DTM-MOA-PCD-QTY-FTX-SG16

This group is used to describe the share of the party in the section. This can either be the requested, the previous or the firm involvement or 'line', and it can either be attached to conditions or not.

0780 STS, Status

To describe the involvement of the party.

0790 RFF, Reference

To be used to indicate the line identification and when relevant the line number (the sequential number this specific line will have on the contract). Additionally, this segment may carry the 'broker system id', which is an identifying unique reference of the individual who accepted the reinsurers's conditions.

0800 DTM, Date/time/period

To indicate the authorisation period linked to the line. It may be used when the message is used as a market status report to specify the response date/time of each party on the list.

0810 MOA, Monetary amount

To express the involvement as an amount or to request it to be expressed in these terms.

0820 PCD, Percentage details

To express the involvement as a percentage or to indicate that the line is expected in this format. Additionally, it can be used to report specific condition percentages attached to the party's line in a 'party involvement report'.

0830 QTY, Quantity

To express the line as a quantity, or to request the line to be written in such a format.

0840 FTX, Free text

To give additional information regarding the format of the line. Additionally, it can be used to clarify the reason why a party declined interest in the risk.

0850 Segment Group 16: RCS-FTX-ATT-RFF-PCD

Used to specify the condition(s) attached to the line.

0860 RCS, Requirements and conditions

To specify the general type of condition and its reference.

0870 FTX, Free text

To render the condition in a textual form and optionally the description of the response (to be) given.

0880 ATT, Attribute

To specify the accounting class.

0890 RFF, Reference

To specify the reference for the accounting requirements.

0900 PCD, Percentage details

To specify the percentage split the underwriter wants to see for the specified accounting class.

0910 Segment Group 17: DOC-RFF-IDE-COM-EFI-PNA-DTM

Used to reference supporting information related to the contract, policy or a section of either.

0920 DOC, Document/message details

To identify supporting documents in the widest sense of the term and details directly related to them.

0930 RFF, Reference

To provide a reference to a password which enables access to supporting information.

0940 IDE, Identity

To identify whether the information is related to the contract or to one of more specific sections, and if so, which ones.

0950 COM, Communication contact

To specify the (possibly various) means of communication by which the information can, will or should be put at the disposal of the other parties involved.

0960 EFI, External file link identification

To specify the link of a non-EDI document to an UN/EDIFACT message.

0970 PNA, Party identification

To specify the originator of the supporting information.

0980 DTM, Date/time/period

To identify the date and time that the supporting information was created and put at the disposal of the partners.

0990 UNT, Message trailer

A service segment ending a message, giving the total number of segments in the message (including the UNH & UNT) and the control reference number of the message.