MRSG Endorsements Pilot Review for Market Reform Programme Office S. Dean, 4 th July 2007

Summary to date Endorsement pilot part of the placing stream for Market Reform vision Benefits: Improve customer service and market efficiency, support contract certainty Objective: streamline documentation and process; for now, move towards electronic trading This phase: Revised documentation, remote delivery and agreement. Pilot launched (mid) May 2007, running to at least July 31 st 2007 Aon, JLT, Marsh, Miller and Willis – ‘Direct’ classes Core no. of Insurers signed up, now getting ad-hoc take up Expanded into Marine, Construction, Property, D&O and Financial Risks. Reinsurance focus is in G6 endorsement messaging pilot

General Changes Honeycomb style removed and replaced with Endorsement Header of key recommended and optional data field guidelines; This Endorsement Header incorporated into the Addenda or similar document which is used to obtain agreement from Markets and sent to the policyholder/ client as evidence of the requested changes; This new style Addenda is created at the beginning of the process and is attached to an which acts as the distribution mechanism to Markets; Revised Agreement Process caters for: request and (re)insurer response with agreement/instruction; request and (re)insurer response with scanned attachment of a stamped or signed copy of the revised Addenda returned to the Broker by ; request and (re)insurer prints and signs Addenda attachment and returns by Mail Post;

Changing Honeycomb… SHIPPING COMPANY LIMITED 25 MARINE LANE LONDON Please quote our reference in all correspondence relating to this Contract:: Our Reference: B0576HLW111 Date: 13 October 2006 Dear Sirs ADDENDUM No. 003 We hereby confirm that we have made the following Addendum an effective part of Insurance Cover Note No. HLW111. Please review this document carefully, if you have any queries or you feel the amendment to your cover is not in accordance with your instructions, please inform us immediately. The basis of our remuneration is as disclosed to you in our quote or confirmation of cover in respect of the original placement. ASSURED:ANCHOR SHIPPING LINES S.A. INTEREST:WAR RISKS PERIOD:From 00:00 hours 18 August 2006 Taiwanese local time until hours 24 June 2007 Taiwanese local time It is noted and agreed to amend the expiry date of Vessel Nos. 10 – 14 to read hours, GMT, 13 April 2007 all as remainder of fleet. All other terms and conditions remain unchanged. Yours faithfullyWILLIS LIMITEDA. BrokerAUTHORISED SIGNATORYMARINE

template… From: Dean, Stuart Sent: 20 March :48 To: 123 underwriting Subject: Anchor Shipping Lines / B0576HLW111 / End003Your Ref: abcd1234 Effective Date: 18 August 2006 Please find attached an endorsement request from Anchor Shipping Lines. As Slip Leader you are being requested for a formal response to this endorsement. Response request: Agree Decline Request negotiation If your response is "Agree", please sign and scan back to us by the attached endorsement. GUA Details: GUA present on slip: Yes Leader Response: Part One: Y/N Part Two: Y/N Part Three: Y/N If you have any questions, please contact the undersigned. Yours sincerely, Stuart. Stuart Dean, Willis Limited Tel: (0)

Current Activity Over 700+ endorsements using the new style documentation and being delivered remotely Refining organisation and administration; process holding up JLT roll-out, Aon roll-out now Looking for further selective pilot expansion by broker team Endorsement section on MRPO website, briefing pack attached; Monthly reporting of volumes, take up and commentary MRPO/LMBC working on pilot questionnaire

Next Steps Push take-up, penetrate market with sufficient endorsement numbers to qualify pilot objectives Look to administer endorsements more formally using contract Interim Report: Early recommendations End of pilot workshop(s) to solicit Market feedback through insurers, LMBC, LMA, IUA and other stakeholders to gain market-wide support of changes Success Criteria: Benefits realised Agreed framework for handling endorsements Standardised documentation protocols – leading to message standards Be able to make market-wide recommendations to MRG

MRSG Endorsements Pilot Review for Market Reform Programme Office S. Dean, 4 th July 2007