1. E-Accounting Update Mark Barwick, LIIBA

2. Background LMG workplan for 2009 is based on Finish what weve started E-accounting a key part of this LMG Objective – Full Usage by Q42010 Steering group formed –, Aon, Bell & Clements, HSBC, JLT, Marsh, Tyser, Miller, Willis, Cooper Gay participating Steering group committed to implementing e-accounting within six months of go live date Phase One due to go live in November 2009, Phase 2 in Q3 2010

3. Objectives Move to the use of structured data for key fields Use international (i.e. ACORD) standards for submissions Reduce re-keying on submissions and improve data quality (i.e. what you submit is what you get back) Remove the concept of Work Order and LPAN for brokers Remove the burden of performing Accounting Splits from brokers Provide consistent splits service and reduce query / rejection loops Continue to fulfil reporting requirements (Lloyds and companies) Minimise carrier impact Removal of BSM (optional)

4. Scope All premium types and all contract types with the exception of proportional treaty Release 1 - Submissions at the Non-fundamental Accounting splits level Release 2 – Submissions at the Fundamental level (or partial) Delinked and non-delinked Some contract functions still processed via existing A&S functionality, e.g. An e-Policy request on its own

5. E-accounts – Release 1 Tech Account

6. E-accounts – Release 1 Financial Account

7. E-accounts – Release 2 Tech Account

8. E-accounts – Release 2 Financial Account

9. Release 2 Accounting Splits Service Xchanging create any non-fundamental splits required to support insurers regulatory/ tax requirements Brokers provide Xchanging the information in MRC and/or provided in an optional spreadsheet format Brokers receive Broker Signing Number & Date (BSND) at the level they submit Carriers receive a Carrier Signing Number & Date (CSND) at the non-fundamental level Lloyd's Account Enquiry and the company market equivalent will have mapping between BSND and CSND BSND to CSND file sent to both broker and carriers Claims may quote BSND

10. Timescales – Release 1 Project PhaseStatus Analysis & DesignComplete BuildComplete System Test93% complete Market Acceptance TestOctober – November 2009 ImplementationEnd November 2009 Rollout Convoy 1January 2010 – March 2010 Release 1AFebruary 2010

11. Timescales – Release 2 Project PhaseStatus Analysis & DesignOctober 2009 BuildMarch 2010 System TestMay 2010 Market Acceptance TestJune 2010 ImplementationJuly 2010 Rollout Convoy 2February –May 2010 Rollout Convoy 3May – July 2010 Rollout Convoy 4June – September 2010 Rollout Convoy 5August – November 2010 Rollout Convoy 6October – January 2010

12. Rollout Approach Limited LMG funding in place for 2010 The objective; connect as many brokers as possible for the funds which are available Process managed by Xchanging and LIIBA Brokers will be assigned to convoys based on when their software will be available Brokers need to hit convoy milestones or face being dropped from a convoy and having to wait until last Business plans required detailing internal rollout so Xchanging can plan

13. Implementation Plan

16. Benefits of E-accounts Common approach for brokers for bureau and non-bureau insurers Single approach makes automation easier Reduces staff training costs Reduction of Xchanging re-keying Improved reconciliation & faster process Removal of need to create non-fundamental accounting splits Saving cost and time where brokers use the service Reduced future IT costs – regulatory changes irrelevant Additional front end validation can reduce premium queries Preventing unnecessary human intervention Builds upon your investment in DRI and the XML Gateway Removal of work orders & PANs

17. Next steps for brokers Speak to your software house Speak to LIIBA about your convoy allocation Ensure slips contain base information to drive Accounting Splits Identify your internal Project Manager for the implementation Register for the LIIBA briefings on 30 th October or 9 th November for more details – Email jo.brady@liiba.co.uk.jo.brady@liiba.co.uk