1. London Market Target Operating Model (TOM) Vendor Consultation Briefing Pack November 2015 TOM Version 2.3

2. Agenda 2 3 9 12 15 Agenda  Your opportunity to contribute  Where do I find consultation materials and what are they?  How can you help?  Q&A 1 2 3 Page 4

3. 3 ‘London Matters’ highlighted the threat to London's position as the undisputed global centre for commercial (re)insurance The London Market is the largest global centre for commercial and specialty risk and is in a great position of strength Ongoing investment in making the Market more accessible and efficient Financial strength ratings reaffirmed, outlook revised to positive Continued focus on our collective vision and goals Increasing retention of risk in high growth developing markets Higher acquisition costs make London a more expensive market to deal with than its competitors An inflexible business servicing model that is inefficient and slow to change, reducing London’s competitiveness These challenges are recognised by the Market and there is acceptance of the need to change However, the world is changing which is challenging London’s position

4. The Market has spent the last six months developing a model to deliver one-touch data capture and enhanced central services, and the initiatives required to deliver it Design Principle One touch data capture Enhanced central services Current Operating Model Inefficient and paper based Inflexible and complicated Fragmented Target Operating Model Highly effective and accessible Improved data re-use Economies of scale for common activities 4

5. Our challenge – Your opportunity In 2014 the London Market Group (LMG) published ‘London Matters’*, an analysis of the London Insurance Market and concluded that London's position as the undisputed global centre for commercial insurance was under threat. 5 1.Customers have a preference for buying insurance in their local market 2.London does not have a strong position in emerging markets, and its share of business in these markets is declining 3.London is losing share in reinsurance as purchasing is increasingly centralised and emerging market growth gains in importance 4.London’s expense ratios were 9 percentage points higher than its peers in 2013, driven by higher acquisition and transaction costs 5.The comparatively high regulatory burden could further increase this price disadvantage for London 6.The prolonged soft market cycle, propagated by the superabundance of capital and securitisation Main Challenges Design a TOM that responds to the challenges and embraces innovation Consult with vendors to help us innovate and make this step change Our Response * You can find the ‘London Matters’ report on LMG website http://www.londonmarketgroup.co.uk/index.php/market-reform/latest-news/713-london-matters-the-competitive-position-of-the-london-insurance-market-2 Understand your perspective on the proposed TOM and initiatives Incorporate innovations into the TOM Ensure the TOM has been robustly challenged from outside Vendor consultation

6. This is your opportunity to contribute to the London Market Modernisation agenda We recognise that there are a huge number of stakeholders in the market that we have not yet engaged with. WE NOW WANT YOU to help shape our future and challenge TOM to be as innovative and ambitious as possible. Have your say and get involved by contributing your feedback, challenges and ideas regarding either: The Overall TOM Specific focus Initiatives AND/OR Delegated Authority Delegated Authority Claims Local Shared Service Centre Local Shared Service Centre Settlement We have had 1-on-1 meetings with 31 market participants covering 79% of GWP; engaged with 131 stakeholders across 75 organisations through 37 meetings; and held community workshops with 194 participants TOM engagement to date Complaints Management Complaints Management Data Integration Data Integration 6

7. 7 What role can you play? Propose your ideas and help us understand what else might be achieved helping us push the boundaries Challenge the model and make us think again Build our understanding of how and where you can support us in our endeavours Influence the way the requirements are structured and activities are prioritised How can you help?

8. This is not a selection process, we will be evaluating ideas and challenges – not vendors 8 TOM will review and consider how we can use or address each piece of feedback. If we need more detail or ideas, the team will reach out to you to set up some 1-on-1 time to discuss. Augment Our TOM Programme Incubate Innovation Review where the TOM can be improved and evolved Increase the specificity of our solutions and requirements Challenge whether the scope of initiatives is achievable or overcautious Challenge prioritisation of initiatives to balance risk with benefits realisation Generate, develop and socialise new ideas that could drive further market modernisation Identify potential market disruptors and explore expected impact of successful implementation Design prototypes and seek stakeholder and/or customer feedback Help us to be the best we can be and position yourselves as a potential partner to this market defining programme.

9. Where do I find consultation materials and what are they? 9 TOM

10. 10 We have created a dedicated TOM website that will provide detailed information on the TOM, the initiatives and scheduling www.isupporttom.london TOM overview Detailed initiative information TOM architecture Key initiative questions TOM scheduling Share your thoughts

11. We want your ideas and comments across the TOM initiatives TOM Key messages Fifteen TOM initiatives  Fifteen TOM initiatives were initially identified to deliver the enhanced central services and realise the benefits of straight through processing 1 :  In-flight initiatives (CSRP PbS, PPL) are currently in delivery and not open for vendor consultation  Other in-flight initiatives (IMR, MAT, ECF) are also in delivery and near completion  Prioritised new initiatives (Data Integration, Settlement, DA, Claims, Complaints, Local Shared Services) are the most advanced and on our plan to take forward in 2016 – we have provided detailed information on these  Other new initiatives (Customer Portal, Reporting & Analytics) are less advanced and we will take ideas on these forward once we have the 2016 initiatives well under way  Governance & Delivery covers the TOM programme but is not a specific initiative required to deliver the TOM CSRP 2 PbS IMR 4 Re-Platform Settlement Delegated Authority PPL 3 Claims – Core Services & systems Complaints management New MAT 5 environment Data Integration Electronic Claims File enhancement Governance & Delivery Local Shared Services TOM initiatives Reporting & Analytics Additional CSRP Customer Portal 12 6 4 7 8 3 910 13 5 12 1415 11 Detailed information provided Key: 11 Other 1 Not every initiative impacts all stakeholders 2 CSRP = Central Services Refresh Programme 3 PPL = Placing Platform Limited 4 IMR = Insurers’ Market Repository 5 MAT = Market Acceptance Testing

12. How can you help? 12 TOM

13. 13 How can you contribute? Vendor Engagement We are inviting the vendor community to propose innovative ideas and challenge our preconceptions relating to our modernisation agenda Propose innovative ideas and challenge our preconceptions We are open to disruptive and innovative ideas that challenge our current planned approach, our aspiration is to implement future-proofed solutions to improve our services and address our existing challenges. To do this we need to be aware of your existing capabilities as well as those in the pipeline and understand how they can be applied to our situation. Depending on ideas, we will invite you to working sessions to understand and elaborate your ideas. Consultation is focused on the six initiatives, however we will still value your feedback on other areas of the TOM. Obtain and review the Vendor Briefing Pack and attend future events Email TOM@isupporttom.london to express your interest and request your copy of the Vendor Briefing Pack which contains all of the necessary information and direction on the submission process. In keeping with an open process, we will advise you of any future Q&A sessions and discussions. 1 2 Demonstrate your capability We are looking to partner with vendors that can assist in developing and implementing innovative technology changes to our services as well as those that can support our systems and services on an ongoing basis. You have the opportunity to influence the shape of our programme and put yourselves on the radar for future formal procurement activity. 3

14. The period of open Consultation will last until the end of the year and will drive input, ideas and engagement from all areas of the Market NovemberDecember 06/11 Market Launches 18/12 Ideas for further development On-going Market Consultation 18/12 Market feedback close Evaluation and working sessions 05/11 Vendor Launches Vendor Town Hall Q&A Sessions On-going Vendor Consultation 7/12 Vendor ideas submission 2016 Evolve and Deliver TOM Drive innovation Continue Market and Vendor Engagement Crowdsourcing activities on www.isupportTOM.London Launch of Consultation Generation of ideas, exchange of opinions Collation of ideas and feedback We will continue Market engagement and further target operating model development next year 20/1104/1207/12 If you cannot access any of the information, email TOM and a soft copy will be provided 10/11 14 24/1127/1120/11 Market Town Hall Q&A Sessions 09/12

15. Q&A 15 TOM