1. E-Policies Update Mark Barwick, Associate Director, LIIBA

2. Agenda 1What is an e-policy Scope Benefits MRG Targets and milestones Measurement Implementation Planning Detailed process Further Information Questions

3. What is an e-policy? There are three types of policy now available from Xchanging: Paper policy – wording and associated documentation submitted for signing as paper. E-policy Submission – Submitted electronically via the IMR but Policy Control form specifies broker requires a paper policy True e-policy – policy request submitted via the IMR and policy document returned to the broker electronically as a digitally signed PDF document.

4. 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) Binding authority wordings Policy endorsements where the original policy was on paper Out of Scope Policy requests by renewal receipt

5. Benefits of e-policies Faster turnaround time allows brokers to meet their contract certainty obligations Reduction in paper handling costs Still allows paper policy to be produced where local regulation demands it Electronic record of policy held in repository for subsequent processing and claims AND SAVE TREES!

6. MRG Targets & Milestones 31/12/2008 – 80% of policy submissions to be electronic. 1/3/2009 – 100% of policy submissions to be electronic or supported by an e-policy exemption form. –Paper policy submissions without exemption form will be rejected prior to normal policy checks being performed. –e-policy submissions will be signed electronically as a default. – Brokers should only request paper policy where insured requires embossed policy. Q4 2009 – 90% of all policies both submitted and signed electronically.

7. Measurement TARGET – 100% of policy submissions electronic by 1/3/2009: Broker level data not available for e-policy submissions Progress against target based on manual count of e-policy submissions at market level TARGET – 90% of policies signed electronically by Q42009: LIIBA producing monthly league tables showing % of true e- policies as a % of total policies signed for each broker Binding authority wordings a late addition to the scope and therefore excluded Binding authority data available and will be added as later development

8. MRG Target: 100% by 1/3/2009

9. MRG Target: 90% by Q4 2009

10. Before using e-policies Broker must complete registration form – See MRO website. 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 view e-policy Determine central email address for signed e-policy to be sent to Consider what you tell your clients about the change Train your policy technicians in Direct Load or your DRI solution

11. E-policy submission process Establish at quotation whether e-policy suitable for (re)insured If (re)insured requires paper policy could this be printed version of e-policy or do they require embossed paper policy? Ensure MRC makes it clear policy required, and policy attached to MRC when placed. Submit word/PDF copy of wording via A&S as part of work package Ensure a Policy Control Form is completed and present in work package If (re)insured has requested embossed policy then specify a paper copy required on Policy Control Form

12. E-policy signing process at Xchanging Xchanging sign policy electronically and apply electronic seal to the document, similar to embossed seal found on paper policies. Xchanging load copy of signed policy to UMR folder of IMR with document type of Signed Policy. Xchanging email signed document to brokers central email address provided at registration. Brokers may send e-policy to client electronically, or if client preference print and sent as paper

13. E-policy exemption process Brokers have identified minority of contracts where e-policy submission not possible. Examples include: –(re)insured requires wet signature due to local requirements or preference. –(re)insured wants London security to be documented in consistent manner as other insurers on risk –Legacy or complex risk E-policies exemption form requires broker to explain why paper submission required Information gathered from exemption form will allow service to be enhanced to bring more policies in-scope Paper policy submissions without e-policy exemption form will be rejected prior to policy checks being completed

14. LIIBA members NOT registered as at 13 th February 2009 Baronsmead Partners Bennett Gould & Partners Camberford Law CKRe Corrie Bauckham Batts Crescent Global UK Croton Stokes Wilson Culver Ltd Decus Insurance Endeavour Insurance European Insurance & Reinsurance Brokers OAMPS Special Risks FP Marine Risks Gresham Insurance Brokers Griffiths & Armour Global Risks Hayward Aviation Howard Global Insurance Services International Risk Solutions KM Dastur & Co Paragon International Insurance brokers Parker Norfolk & Partners Smith Bilborough & Co Special Contingency Risks Special Risks Insurance Brokers SSL International Brokers Tasker & Partners Texel Finance The Broker Network The Underwriting Exchange Towergate London Market WT Butler & Co Woodgate & Partners

15. Further Information The following documentation is available from 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: www.marketreform.co.uk For further information contact: Mark.Barwick@LIIBA.co.uk - 0207 280 0152 or Michael.Langston@Xchanging.com - 01634 887 662Mark.Barwick@LIIBA.co.uk Michael.Langston@Xchanging.com

16. Joe Plumeri: This is a further example of the London market improving its processes to deliver benefit to our clients. E-Policies help us to meet our obligations to provide our clients with evidence of the business we have placed for them; and they help us do that in an efficient manner consistent with a twenty first century market place. Lower cost to process, better service delivered. That is what market reform is all about.