We are in the process of making various changes to Fulcrum Flexi to accommodate the VAT increase. Please remember that we are a third-party system and cannot make any changes to the sum insured or premiums on your system, but we will include some functionality that will assist you.
The changes to be included in the next release are detailed below:
1. VAT changes
We are amending Fulcrum Flexi so that it will be date based, which means that Fulcrum Flexi will look at the effective date when determining which VAT rate to calculate. If the effective date is prior to 1 April 2018, VAT will be calculated at 14%, and 15% if the effective date is after 1 April 2018.
2. Changes to documents
We are in the process of updating our VAT disclosure documents to indicate the VAT amounts calculated at 14% and 15%.
3. Premium increases by 115/114
Included in the release will be the functionality to increase gross premiums by 115/114 across your whole book, excluding the box/locked products. Each broker will be required to “activate” this functionality if they so desire.
4. Vehicle valuation
We have been advised by imagin8 that the values they receive from TransUnion will be updated to include the increased VAT rate with effect from 1 April 2018.
What is Fulcrum Flexi not doing?
1. Sum insured increases
We have received correspondence that some of the Insurers want their sums insured to be increased as well. This functionality is available in Fulcrum Flexi under menu option B – Periodic Processes and then menu option G – Increase/Decrease Sums Insured. This process must be done per policy type.
We have not received any communication from SASRIA in respect of their requirements, so we are not making any changes to SASRIA, other than to calculate VAT at the right rate.
3. Insurer box/locked products
We are in discussion with the various insurers, but they haven’t finalised their requirements in respect of increasing premiums or sums insured. Currently we do not have functionality to re-rate the box/locked products in bulk. As the broker, you will need to liaise with each of your Insurers.
We are planning on having this release available by 15 March 2018 to give you, our clients, sufficient time to run the processes required prior to processing your debit order run.
The release notes will be very detailed to assist you with any of the processes you choose to run.
If you have any questions or believe we’ve not addressed an issue, please contact Sue Adams, General Manager: Customer Service, on firstname.lastname@example.org or +27 (0)11 036 2429, or email the Fulcrum Service Desk at email@example.com.