E-Policies: Faster with fewer dead trees M ark Barwick, Project Manager, LMBC

Agenda 1.Types of evidence of cover 2.What language in the slip triggers EOC? 3.Scope of e-policies 4.Before using e-policies 5.E-policies submission & signing process 6.Benefits of e-policies 7.MRG Targets and milestones 8.Flyer to be inserted into all paper policies 9.Example e-Policy 10.Further Information 11.Questions

Types of evidence of cover Original evidence of cover –Contract document –Broker Insurance Document (BID) –Policy/ E-policy –Certificate (Binding authority only) Contract changes –Contract change document agreed by insurers (MRCE) –Policy Endorsement/ addenda –Contract change document finalised by broker (with BID status)

What triggers evidence of cover Contract Document: –INSURER CONTRACT DOCUMENTATION heading in RISK DETAILS section of MRC specifies This document details the contract terms entered into by the insurer(s), and constitutes the contract document Policy: –INSURER CONTRACT DOCUMENTATION specifies XIS to sign Lloyds policy and/or XIS to sign Company policy. –Wording must be attached, or clearly referenced, when insurers commit to contract E-policies –INSURER CONTRACT DOCUMENTATION MRC heading specifiesXIS to sign Lloyds policy and/or XIS to sign Company policy, which may be in electronic format. –Broker has registered for E-policy. No special instructions on the PCF/Work Order requesting a paper policy Broker Insurance Document (BID) may optionally be used by broker

Scope of e-policies In-Scope Covers marine, non-marine and aviation Insurance and reinsurance Direct, facultative and excess of loss S&A or Policy only Policies, policy endorsements and slip policies (companies only) Out of Scope Policy endorsements where the original policy was on paper Policy requests by renewal receipt Binding authority wordings

Before using e-policies Broker must complete required registration form Broker must be an existing user of A&S, either Direct Load or DRI Adobe Acrobat Reader (version 5 or above) must be installed to allow brokers to view the e-policy Determine what central address you want the signed e-policy to be sent to Consider whether you want to tell your clients about the change Train your policy technicians in Direct Load or your DRI solution

E-policy submission process Ensure your MRC makes it clear you require a policy, and the policy is attached to the MRC when placed. Submit a word/PDF copy of wording via A&S as part of work package Ensure Work order specifies either a Policy Only submission or a Premium and Policy submission. Ensure a Policy Control Form is completed and present in work package If the (re)insured has specifically requested an embossed policy then specify a paper copy is required on the Policy Control Form

E-policy signing process at Xchanging Xchanging sign the policy electronically and apply an electronic seal to the document, similar to the embossed seal found on paper policies. Xchanging load a copy of the signed policy to the UMR folder of the repository with a document type of Signed Policy. The submitting broker and the participating insurers can all view the document. Xchanging a copy of the electronically signed document to the central address provided by the broker when they registered for e-policies. Brokers may send the e-policy to their client electronically, or where the client preference is for paper this may be printed and sent on as a paper document

Benefits of e-policies Faster turnaround time since document is sent/received much quicker allows brokers to meet their contract certainty obligations Reduction in paper handling costs Still allows a paper policy to produced where local regulation demands it Electronic record of policy held in the repository for subsequent processing and claims AND SAVE TREES!

Brokers registered as at 25 th June 2008 Alec Finch (London) Alwen Hough Johnson ARB International BDB Ltd Benfield BMS Intermediaries Bowood Partners Ltd Chesterfield Citynet Insurance Cogent Resources Connor Hale Kerslake Contractsure Cooper Gay EBA (European Brokers Associated) EPG Insurance Gina Fitzgerald Glencairn Grosvenor Brokers Guest Krieger Guy Carpenter HBA Ltd Heath Lambert Houlder Ins Howden HSBC Integro Group James Hamden Jardines Jonh Holman & Son Lark Insurance LMIB Lonsdale Lothbury UK Lucas Fettes Marsh Millers Newman Martin & Buchan Paul Napier Price Forbes Priest &Co Prime Professions PWS/THB R K Carvill R K Harrison R L Davison RFIB Robertson Taylor Insurance Safeonline Senior Wright Ltd Tyser &Co Willis

2008 Volumes to date

Biggest users of e-policies

MRG targets and milestones Milestones and targets Date Xchanging insert flyers into every paper policy submitted July 2008 Anonymised Monthly reporting commences August 2008 Cut off date for all brokers to be registered. Start Q Name and shame brokers not registered September 2008 MRG target 80% of all policies electronic December 2008 Name and shame monthly reporting commences Q1 2009

From July 2008 all paper policies received from brokers will have this flyer inserted into the documentation before it is returned to the broker Similar approaches have proved successful for other reform initiatives such as A&S usage and adoption of new slip standards

Further Information The following documentation is available from the Market Reform website: –Xchanging E-policies User Guide. –List of brokers who have signed up for E-Policies –Specimen E-Policy –Frequently asked questions document –E-Policies broker registration form To view or download these documents go to: For further information contact: or