1. With LMG Secretariat LMG Forum August 2011 Christopher Croft, LMG Secretariat Sarah Thacker, Lloyds Gemma Reed, Lloyds

2. LMG Forum 2011 Agenda Modernisation update Coverholder standards – a global aspect to modernisation

3. 3 © 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)

4. 4 © 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

5. LMG Forum 2011 New MR C version New version coming – version 1.4 Release in the next couple of weeks for implementation by 1 st 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 Lloyds pilot claims scheme –Some other minor changes to guidance to align different MRC standards (open market, binder etc) and for clarification

6. LMG Forum 2011 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 Lloyds Exchange team

7. LMG Forum 2011 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.

8. LMG Forum 2011 Non bureau progress Live action underway Communications across the market in the autumn – including September Forum Structured plan for implementation in 2012?

9. LMG Forum 2011 Speeches, rallies etc Coverholder Technology Forum 29 th – 30 th September (www.lloyds.com/coverholde rstechnologyforum)www.lloyds.com/coverholde rstechnologyforum Insurance Technology Congress 11 th – 12 th October Xchanging Conference 9 th- November Barnabas Hurst-Bannister IIL Lecture 22 nd November

10. LMG Forum 2011 Questions?

11. Lloyds Coverholder programme 31 st August 2011

12. © Lloyds Coverholders are delegated authority to write risks on behalf of Lloyds syndicates Lloyds strategic review 2009 emphasized the need to focus on coverholders as a key distribution channel Lloyds developed a vision for reporting standards, claims, technology, education and marketing INTRODUCTION: Lloyds Coverholder Programme

13. © Lloyds Agenda Coverholder reporting standards Claims processing Technology The Coverholder Technology Forum Education Marketing and communications

14. © Lloyds Coverholder reporting Standards: The business problem Coverholders 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?

15. © Lloyds Coverholder reporting Standards: The options Standards Do nothing Central system

16. © Lloyds Coverholder reporting Standards: The benefits Easier for coverholders to do business with Lloyds 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

17. © Lloyds PROGRESS TO VISION: reporting standards VISION - Standardised information flows No standards Different information requests Re-keying Regulators asking for more detail today ACORD ER3001 US Property Exposure Reporting Premium Reporting Claims Reporting New version STARTING POINTComing up

18. © Lloyds PROGRESS TO VISION: CLAIMS PROCESSING VISION - 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

19. © Lloyds PROGRESS TO VISION: technology VISION - Transactional information available to all parties in the chain Starting point Systems not typically designed to hold transactional binder information Manual manipulation of data Re-keying Lack of awareness in London of systems available Starting to see systems holding transactional data ACORD test version of XML for exposure reporting ACORD working on XML for premiums and claims Working with coverholder and binder system vendors to get the standards embedded Ability for real-time transactional information where this is required Increased use of XML as a method to transfer data Continue working with coverholder and binder system vendors to get the standards embedded todayComing up

20. © Lloyds Coverholder Technology Forum: 29-30 September 2011 Lloyds 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

21. © Lloyds 20 system suppliers will be exhibiting, chosen for their offerings for binding authority business Presentations include: Vendor carousel Bluffers guide to technology Lloyds 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 registerwww.lloyds.com/coverholdertechnologyforum Coverholder Technology Forum: 29-30 September 2011

22. © Lloyds PROGRESS to vision: EDUCATION STARTING POINT Many coverholders found Lloyds confusing Coverholders interested in learning more, but no accessible training Lack of awareness of Lloyds amongst prospective clients and coverholders today Strategic review of educational requirements in 2010 New educational materials available on www.lloyds.com Technical Author hired and starting to author e-learning modules (Coverholder Toolkit) Australian Diploma launched COMING UP Explore LLMIT accreditation in key US States and market globally via country managers Delegated Underwriting Module 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

23. © Lloyds PROGRESS to vision: MARKETING & COMMS STARTING POINT No easy way for retail brokers to find their nearest Lloyds coverholder Coverholders lacking the tools they need to promote themselves No consistent communication to coverholders on key issues Confusion over the Lloyds brand and when it can be used Today Coverholder Directory live E-bulletin:- Coverholder News launched New coverholder website New Brand Guidelines including a coverholder sub-brand Coverholder plaques in US COMING UP Marketing fact sheets to help Coverholders explain Lloyds to their clients New policy jackets to be piloted VISION: - Regular targeted communication - Easy to find information to understand & explain Lloyds - Coverholders well informed about Lloyds