An Introduction to ELTO Richard Potts Date: 6 February 2019 www. - - PowerPoint PPT Presentation

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Richard Potts Date: 6 February 2019

An Introduction to ELTO

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Outline for the presentation;

• 1. Origin and Purpose of ELTO
• 2. What have been the results so far?
• 3. What it is ERN? Why is it important?
• 4. Additional Tracing and Declaring
• 5. Compliance, data accuracy and auditing
• 6. Your contribution
• 7. Questions?

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Origin of ELTO – MIB and its Mission

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• Total cost of uninsured motoring:

£400million

• Total UK vehicles:

39 million

• Number of uninsured vehicles:

1 million

• Average cost per honest motorist:

£30 per year

• People injured each year:

29,000

• People killed each year:

120

How big is the problem of uninsured driving?

The cost and impact of uninsured driving

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• Introduction of CIE – Continuous Insurance Enforcement
• ‘Enforcement from the Record’
• By comparing the MID - Motor Insurance Database – with the

DVLA database we can identify vehicles not insured – whether on the road or not

• It was based upon this MID model that the ELD was born

How big is the problem of uninsured driving?

Reducing the levels of uninsured driving;

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Origin of ELTO – MIB Structure

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• Introduced in April 2011 by the industry to

improve the tracing of EL insurance policies using a central database (ELD)

• Exists to help find the insurer of their

former employer where the claimant is suffering from a long-tailed disease / injury caused at work

• Replaces the voluntary Employers'

Liability Code of Practice (ELCOP) introduced in 1999

• Membership is currently voluntary – over

160 insurers have joined, representing more than 99% of the market

Purpose of ELTO

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• FCA Regulations introduced Feb 2011,

compelling insurers to publish within three months:

• new and renewed EL policies from 1

April 2011;

• also Historic policies prior to 1 April

2011 on which a claim has been made

• ELD went live with in April 2011
• In excess of 22 million records on the

ELD of which over 8.5m are voluntary

• Almost 5,500 Registered users making

enquiries with a >92% success rate

ELTO – Main Principles and Results

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What is an ERN? Why is it important?

• Each organisation operating a Pay As You Earn (PAYE) scheme is

allocated an ERN by HMRC

• This is a unique reference number for their employees’ income tax and

national insurance contributions

• Also commonly referred to as their ‘Employer PAYE reference’
• When paying their income tax and national insurance contributions to

HMRC this forms part of their login to the HMRC web site Why is it important?

• It is used as a unique identifier for a company in a similar way to the

VRM for a motor policy

• In tracing historic employers many people will have saved their P60

which shows the ERN

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Format of the ERN – from 2001 onwards

• NNN/AAnnnnn
• NNN = three-digit code for the tax office catchment area the employer is

based in

• HMRC tax office numbers are from 001-999
• AA= two letters and;
• nnnnn= five numbers making up the unique reference for the employer
• Large companies may have more than one ERN if they operate

different schemes for their employees i.e. more than one Pension Scheme

• ELTO report monthly on ‘ERN Referrals’

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What is NOT an ERN? Linking with HMRC Pilot exercise linking with HMRC

ERN provided – is it correct? No ERN – can we populate? Marked as exempt – is this correct?

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Annual Data Assurance Audit

Compliance

• FCA requirement
• Independently audited
• Comparison of the ELD against

your core system data

• 99% required for accuracy of data

comparison

• Based on the audit report a senior

director must send to the FCA a Directors’ Certificate which declares the company as being ‘Materially Compliant’ or not

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Annual Tracing Audit

Compliance

• FCA requirement for insurers to trace

against Historic records

• Around 400-600 enquiries each week
• 28 days to search records and respond
• All tracing enquiries to be ‘declared’

against with 28 days permitted

• ELTO requirement to be audited against

the Tracing Policy

• All audit scores are provided to the FCA

and all Red audits (those scoring 60%

• r less) are automatically referred to the

FCA

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• Helping insurers be more timely in

their submissions

• Accuracy and Data

quality

• Getting the message
• ut…
• Broker Guide
• Tips for

intermediaries

• Employers Guide

Your contribution

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• 1. ELD is one of a number of databases managed

by MIB

• 2. Reports are provided monthly to assist you in

Time To Supply, ERN capture, data quality and tracing

• 3. These are to assist you in your compliance with

industry and regulatory requirements including auditing

• 4. Understanding these yourself and making your

customers aware will make compliance easier

In Summary

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Any Questions

?