With

LMG Secretariat

LMG ForumAugust 2011

Christopher Croft, LMG Secretariat Sarah Thacker, Lloyd’sGemma Reed, Lloyd’s

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Agenda

• Modernisation update

• Coverholder standards – a global aspect to modernisation

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© Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.

ECF2 – All core delivered and in roll out

Claims Workflow Triggers (CWT)

• 17 carriers receiving live messages• 5 fully integrated into own workflow• Other carriers to join by arrangement with Xchanging

Claims Agreement Services (CAS)

& Single Sign On (SSO)

• CAS & SSO are live• 19 carriers plus XCS using in production• Rollout in progress with a further 9 carriers gong live in

August and 13 in September

Document File Viewer (DFV)

• DFV is live and converting >7000 documents a day• Some intermittent teething problems are being resolved

with Adobe• Rollout in line with CAS & SSO schedule

Claims Workflow Services (CWS)

• 10 carriers are live and using CWS to run claims workflow

• Rollout is going to plan with a further 4 carriers gong live in August and 12 in September

• MAT completed and awaiting sign off for ECF001, ECF002, ECF003, ECF004, ECF005 and LADD

• LREC 1.1 is in MAT with the remainder to follow during August and early September

• Report distribution mechanism nearing completion of MAT.

Claims Data Warehouse (CDW)

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© Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging.

eAccounts

eAccounts Current Production use

• R1b signed off by the market

• Miller, Price Forbes, UIB and Guy Carpenter continue with live operation and have

been joined by Aon UK.

• Aon Benfield, Lockton, Ropner, Towers Watson & Cooper Gay are anticipated to be

live in September.

• The brokers joining the next convoy are being agreed.

eAccounts Release 2 (R2)

• Market PM and Xchanging continue working together to produce a viable plan to

deliver R2 using the ‘big bang’ approach to delivery.

• Analysis of the requested change requests continues and it is anticipated to conclude

in Q4

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New MR C version

• New version coming – version 1.4

• Release in the next couple of weeks for implementation by 1st February

• Guidance changes only – no changes to headings anticipated

• Principal changes

– Nonadmitted and Reinsurance Reform Act and changes to surplus lines regulation

– Guidance to reflect usage of Lloyd’s pilot claims scheme

– Some other minor changes to guidance to align different MRC standards (open market, binder etc) and for clarification

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Endorsements

• Marine, property, PI and specie now live across market

• Bi-laterals emerging in Bloodstock, Livestock and Terrorism

• Engagement matrix to be published

• MAT underway led by the Lloyd’s Exchange team

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New MR C version

• Exchange data shows:

– ‘Unconditional Acceptance’ averaging 2,000 per month (data at end of July 2011)

– ‘Unconditional Acceptance’ messages in July up 16% on June at 2,013

• Market data requested from insurers and brokers for August by 7 September

• Work on ‘subjectivities’ and ‘multi-section risks’ process improvements taking longer than anticipated

• Project update to be issued later this week.

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Non bureau progress

• Live action underway

• Communications across the market in the autumn – including September Forum

• Structured plan for implementation in 2012?

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Speeches, rallies etc

• Coverholder Technology Forum 29th – 30th September (www.lloyds.com/coverholderstechnologyforum)

• Insurance Technology Congress 11th – 12th October

• Xchanging Conference 9th- November

• Barnabas Hurst-Bannister IIL Lecture 22nd November

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Questions?

Lloyd’s Coverholder programme

31st August 2011

© Lloyd’s

Coverholders are delegated authority to write risks on behalf of Lloyd’s syndicates

Lloyd’s strategic review 2009 emphasized the need to focus on coverholders as a key distribution channel

Lloyd’s developed a vision for reporting standards, claims, technology, education and marketing

INTRODUCTION: Lloyd’s Coverholder Programme

© Lloyd’s

Agenda

Coverholder reporting standards

Claims processing

Technology

The Coverholder Technology Forum

Education

Marketing and communications

© Lloyd’s

Coverholder reporting Standards: The business problemCoverholders

have to provide

information on risks,

premiums and claims

Different syndicates asking for

different info

Regulators asking for

more detail

Re-keying

How can we make it easier for

coverholders?

© Lloyd’s

Coverholder reporting Standards: The options

Standards

Do nothing

Central system

© Lloyd’s

Coverholder reporting Standards: The benefits

Easier for coverholders to do business with Lloyd’s

Clear statement of the information needed

Freedom to choose systems and technologies

Standard information flows

Consistent requirements around which processes and systems can be designed

Reduction in re-keying and the need for manual intervention

More informed decision making

© Lloyd’s

PROGRESS TO VISION: reporting standards

VISION - Standardised information flows

No standards

Different information requests

Re-keying

Regulators asking for moredetail

today

ACORD ER3001 US Property Exposure Reporting

Premium Reporting

Claims Reporting

New version

STARTING POINT

Coming up

© Lloyd’s

PROGRESS TO VISION: CLAIMS PROCESSINGVISION - Settlement times equal or better than competitor markets, with reliable electronic claims handling

Poor feedback from coverholders on settlement time for claims referred to London

The “co-lead” claims problem

Risks associated with TPA performance

today

Claims standards

Measurement of processing times for paper based bordereau

Future ECF bordereaux inclusive of co-lead claims pilot

TPA registration processes being considered

Coming up

Promote use of standards

Actions based on outcome of review

Pilot to progress to BAU?

Starting point

© Lloyd’s

PROGRESS TO VISION: technologyVISION - Transactional information available to all parties in the chain

Starting point

Systems not typically designed to hold transactional binderinformation

Manual manipulation of data

Re-keying

Lack of awareness in Londonof systems available

Starting to see systems holding transactional data

ACORD test version of XML forexposure reporting

ACORD working on XML for premiumsand claims

Working with coverholderand binder system vendorsto get the standards embedded

Ability for real-timetransactional information where this is required

Increased use of XML as amethod to transfer data

Continue working with coverholder and binder system vendors to get the standards embedded

today Coming up

© Lloyd’s

Coverholder Technology Forum:29-30 September 2011

Lloyd’s is hosting the Coverholder Technology Forum as part of a commitment to improve access to the market through better use of technology

This forum is for coverholders, TPAs, brokers, underwriters and vendors to learn more about the opportunities that technology can bring

© Lloyd’s

20 system suppliers will be exhibiting, chosen for their offerings for binding authority business

Presentations include:

Vendor carousel Bluffers guide to technology Lloyd’s and ACORD coverholder reporting standards Presenting the vision Coverholder panel Coverholder programme update

This event is free to attend, however, you must register

See the agenda, or www.lloyds.com/coverholdertechnologyforum to register

Coverholder Technology Forum: 29-30 September 2011

© Lloyd’s

PROGRESS to vision: EDUCATION

STARTING POINT

Many coverholders found Lloyd’s confusing

Coverholders interestedin learning more, but no accessible training

Lack of awareness of Lloyd’samongst prospectiveclients and coverholders

today

Strategic review of educational requirements in 2010

New educational materials available on www.lloyds.com

Technical Author hired andstarting to author e-learningmodules (CoverholderToolkit)

Australian Diploma launched

COMING UP

Explore LLMIT accreditation in key US States and market globally via country managers

Delegated UnderwritingModule in LLMIT

Release and publication of the Coverholder Toolkit

VISION: - range of guidance and educational offerings - clear pathway from introductory to advanced learning - easy to find and use training & guidance materials

© Lloyd’s

PROGRESS to vision: MARKETING & COMMS

STARTING POINT

No easy way for retail brokersto find their nearest Lloyd’scoverholder

Coverholders lacking thetools they need to promotethemselves

No consistent communication tocoverholders on key issues

Confusion over the Lloyd’sbrand and when it can be used

Today

Coverholder Directory live

E-bulletin:- ‘CoverholderNews’ launched

New coverholder website

New Brand Guidelines including a coverholdersub-brand

Coverholder plaques in US

COMING UP

Marketing fact sheets to helpCoverholders explain Lloyd’sto their clients

New policy jackets to be piloted

VISION: - Regular targeted communication - Easy to find information to understand & explain Lloyd’s

- Coverholders well informed about Lloyd’s