1. Electronic Claim File and A&S Repository Briefing Market Forum 24 th August 2006

2. Market Reform Page 1 Introduction – New team structure Update on A&S Repository –Restatement of purpose and benefits –What is being delivered and when? Update on Electronic Claim File Project –Restatement of overall objective –What is being delivered in Phase 5 –Challenges for the Market Questions Agenda

3. Market Reform Page 2 Update on A&S Repository

4. Market Reform Page 3 Restatement of overall A&S Objectives Rationalise and streamline business processes, specifically: –Speed up premium and claims payment –Remove reliance on paper –Reduce errors and reconciliation by capturing richer data once –Enable back office rationalisation –Introduce flexibility - process the way the business requires rather than the business being driven by constraints Implement international standards for the communication and processing of accounting & settlement data (the ACORD XML RLC standards) Provide a firm base for the future

5. Market Reform Page 4 Repository Broker loads slip, LPANs and supporting documentation to repository thereby removing paper (and vans) –Three methods: –Direct Load –Email –DRI Message Carriers can gain access and view and download documents DRI enabled repository that also enables direct loading and enquiries to: –deliver documents to Xchanging Ins-Sure Services for checking –deliver documents directly between brokers and carriers i.e. in support of non-bureau or P2P processes

6. Market Reform Page 5 Resultant Bureau Premium Submission Processes

7. Market Reform Page 6 Repository Benefits and Implications Faster turnaround times for documentation since van time is eliminated. No van time and speedier query resolution means signed lines available quicker Speedier resolution of queries will reduce the volume of rejections DRI functionality consistent with ECF. Brokers have options on how to connect, DRI Push, DRI Pull or Direct load (or additionally email for delivery to Xchanging for checking) Gives insurers access to a copy of the slip and other premium submission documentation in the repository Carriers can be notified as a slip is loaded on the repository thereby allowing signed lines to be communicated sooner, thus allowing speedier exposure management Utility function of the repository, without XIS processing, allows broker to distribute documents in a controlled manner to specified parties

8. Market Reform Page 7 A&S Step 1 - Status Status MAT progressing well for email and Direct Load MAT DRI testing to started Monday 14 August with 4 brokers –More to do but on track for September go-live Challenges Market focus required to agree contracts for A&S and ECF Operational efficiency challenges –S&A submissions require policy printing -> ePolicy project started –Change management effort and time for transition to esubmission –Broker resubmission to correct errors

9. Market Reform Page 8 A&S Repository In Scope Marine, Non-Marine, Aviation Original Premiums, FDOs, APs and RPs Stage One, Stage Two, S&A Slip Policies, PPS, Broker produced wordings Repository support of alternative submissions Out of Scope (Release One) Proportional Treaty processing Simultaneous settlement items and Reinstatements

10. Market Reform Page 9 A&S Step 1 September Release Removal of the paper from the closing process Electronic submission to Xchanging via email, Direct Load and ACORD DRI November Release Email and repository storage of OSND and SND Document security updates (access control lists) via ACORD DRI February 2007 Release Further DRI functionality Unstructured Repository – for non A&S and claims documents

11. Market Reform Page 10 Direct Load

12. Market Reform Page 11 Direct Load Simple online form to allow brokers to submit work electronically to Xchanging

13. Market Reform Page 12 A&S Repository Xchanging currently receiving email submissions from 6 brokers Xchanging are ready to engage with other brokers for esubmissions now –Email submissions prior to mid September –Preference for prioritisation of binders and XL business –Xchanging-broker Roll-out methodology in place Contact John.Bobin@Xchanging.com to initiate roll-out planning@Xchanging For more details on A&S Design and Market Implementation Documents, see the Market Reform Web Site http://www.marketreform.co.uk/A&S_home.htm http://www.marketreform.co.uk/A&S_home.htm

14. Market Reform Page 13 Update on ECF

15. Market Reform Page 14 Overview Software delivered to MAT on schedule Substantial testing and implementation task started and progressing well Will change working practices from paper to electronic for many claims practitioners Named brokers and Lloyds managing agents committed to 100% of new Lloyds claims from Q4 2006 Early implementation partnerships growing (111 live) IUA piloting repository since 1 st June

16. Market Reform Page 15 Status today Key Enhancements Phase 1 - See all documents in one view Phase 2 - Leader control of file/improved searching Phase 3 - ACORD DRI (receipt of documents) Completed 2005 Phases 4/5 – Merged into a single phase CLASS @ Lloyds data through GUI, full DRI and Seamless link with documents in repository Live – mid-September Release 6 (MAT February 2007) Support for further variations to the standard claims process –E.g. Partial markets, delegated leads, leaders reserve

17. Market Reform Page 16 Overall Scope Deploys CLASS in the Lloyds market –acts as a simple workflow manager of claims transactions Delivers an interactive Insurers Market Repository to carriers (a shared electronic filing cabinet) –Interactive service available to brokers subject to XIS contract Adopts ACORD standards for the transfer of electronic documents –To/From brokers repositories (at no charge to brokers) –To/From carriers repositories

18. Market Reform Page 17

19. Market Reform Page 18 Screen shot – Transaction Summary Screen Screens are currently under development and are subject to change

20. Market Reform Page 19 MAT - Latest Started on schedule, 9am, 15 th May First Phase (Non-DRI): 25 out of the 26 scenarios scheduled for the first phase tested successfully. Second Phase (DRI): DRI Integration testing underway; 1 priority 1 (show stopper) fault logged to date.

21. Market Reform Page 20 Systems Processes & Procedures Systems Processes and Procedures –Broker & Underwriter Collaborative Approach –High-level guide –NOT a claims adjusting manual Workshops held to review generic process –Confirmed generic process –Confirmed little variation by class of business –Issues Identified and documented.

22. Market Reform Page 21 Contractual Framework - latest Includes –A main agreement with Xchanging for the use of ECF & A&S –Systems Processes and Procedures for the use of ECF –User guides for the use of A&S; and –The Mandatory Rules binding all users of ECF and A&S Next Steps –Unlikely alterations to Schedules 5 and 6 of the LPSO agreement likely to be in place for the launch –Interim measures are likely for brokers and managing agents to have agreed SP&P, User Guides and Mandatory Rules –LMA will be holding meetings over the next few weeks to ensure managing agents are in alignment –Market participants to sign interim Xchanging letter

23. Market Reform Page 22 IUA Pilot

24. Market Reform Page 23 Early Implementations Implementation by Broker-driven trading partnerships –by classes of business and risks –with participating underwriters and XCS –MRPO monitoring progress In parallel with the enhancements –early experience of electronic work –assess impact on internal broker and carrier procedures and processes Using todays CLASS and repository

25. Market Reform Page 24 Carriers Aegis Amlin Chaucer Faraday Hiscox Kiln Limit MAP St Paul MAP Markel Brit Catlin Talbot Ascot Brokers Benfield Cooper Gay Guy Carpenter Marsh Miller Willis Glencairn Claytons Aon Early Implementers Class of Business Marine Hull Aviation Direct Reinsurance PI Non Marine Property Binding Authorities FinPro Marine Cargo Energy Ace AIG Advent Atrium Welln Heritage Aspen Re XCS Beazley XL Cathedral Marketform Mitsui Whittington Watkins Wurt Wellington

26. Market Reform Page 25 Public Commitment to 100% Target Brokers Committed to deliver new claims to Lloyds electronically Aon Benfield Marsh Guy Carpenter Cooper Gay Active support from: JLT ARB Millers Willis Glencairn Claytons Managing Agents Committed to deal electronically with new claims Amlin Advent Beazley Beaufort Brit Cathedral Chaucer Faraday Hardy Heritage Hiscox Limit SVB Marlborough St Paul Wellington

27. Market Reform Page 26 Key Dates Monday 15 th May Started ECF Market Acceptance Testing (managing agents/interactive brokers) Monday 31 st July Started Market Acceptance Testing using ACORD DRI standards (managing agents/batch brokers) Friday 1 st September Completion of Market Acceptance Testing Monday 11 th September One week sign-off period Week commencing 10 th September Live ECF trading

28. Market Reform Page 27 How to get started? 1. Contract with Xchanging 2. Signed up to Contractual Framework 3. Who are you going to partner with initially? What classes of business? 4. Logons, connection, training – Xchanging 5. Have you read the System Processes and Procedures 6. Register all partnerships with MRPO 7. Business procedure training with the CII Start up procedures available on market reform website

29. Market Reform Page 28 Next Steps Delivers first version – Mid September –of an integrated electronic claims service for Lloyds –replicating existing file electronically –with improvements where possible –companies and syndicates can see the same claim Things change and we wont have thought of everything There will be more issues and enhancements –Legacy claims –Issues and suggestions recorded

30. Market Reform Page 29 Contacts Claire Bulman (Claire.bulman@lloyds.com) –020 7327 6513 Adam Stafford (Adam.stafford@lloyds.com) –020 7327 6634 claims@marketreform.co.uk

31. Market Reform Page 30 QUESTIONS?