1. Measuring Progress Lloyds Business Process Reform & London Market Standards Committee

2. Manage Why measure? Improve performance Measure Monitor

3. Measure what? 1. Policy production 2. Premium and claims payment 3. Claims processing

4. What are the dimensions? 1. Timing 2. Quality 3. Satisfaction 4. Cost measure how long it takes in the first instance, measure compliance and up take of reform initiatives. monitor customer satisfaction not in the near future.

5. REL Research TimingQualitySatisfactionCost Policy production Premium & claims payment Claims processing

6. REL Research Identified key client processes (touch points) provided the first data on how long it takes for current processes Provided valuable insight on the difficulty of collecting benchmarking metrics across the whole of the London market place.

7. Lessons from the REL work The extent to which market participants measure their own performance is highly variable. The data that is collected is not uniform across the participants. Makes the process of bring these together extremely difficult.

8. Ideally to bring together data from multiple sources Agree Definitions Harmonised processes Collect the data centrally Apply the same quality procedures At each source, someone owns the responsibility for quality data.

9. Approach Starting point – collect those that are captured electronically at the bureau – very limited: inception date, presentation date & signing date for Stages I & II. Missing metrics – tie them to the existing reform initiatives: Policy production – contract certainty [also regulatory pressure] Premium & claims payment – A&S Claims processing – ECF

10. Approach utilise available data and link to reform initiatives TimingQualitySatis- faction Cost Policy production 1. XIS stage II presentation data 2. Legacy policy data 8. XIS rejection data [XIS reasons] 9. LMP Slip audit 10. XIS rejection data [PPR checks] 16. Lloyds custom er service survey NOT in the near future Premium & claims payment 3. XIS stage I presentation data 4. A&S 5. ECF 11. XIS rejection data [XIS reasons] 12. A&S 13. ECF Claims processing 5. XIS Claims payment data 6. ECF 7. A&S 13. Lloyds Claims Performance metrics 14. ECF 15. A&S

11. Policy production: Timing XIS stage II presentation data inception date signing date for wordings agreement [Stage II signing] Analysis will be reviewed by MRG next Tuesday XIS received 27,000 stage II presentations last quarter, representing about 20,000 contracts.

12. Policy production: Timing Legacy policy data Stage I signing Stage II signing Year accountNumber of legacy policies as atPer cent increase / decease Autumn 2004Spring 2005 1993 - 199994,60093,596-1% 200019,63720,0462% 200120,72020,6310% 200224,05222,890-5% 200328,10524,516-13% 200425,70229,37914% Total212,816211,058-1%

13. Policy production: Quality XIS rejection data - XIS reasons b – excludes Jan-04 The volume of binders is about 15% of the open market contracts

14. Policy production: Quality LMP Slip

15. Policy production: Quality LMP Slip - open market

17. Uptake of ECF & CLASS for Lloyds Uptake indicatorCarriersBrokers ReadinessAcquisition of XIS- IMR log on ID. Ability to transfer electronic documents to the XIS-IMR Training for CLASS Acquisition of CLASS IDs Ability to initiate CLASS transactions ImplementationVolume of new claims Volume of claims transactions ECF: Electronic Claims File CLASS for Lloyds: Claims Loss Advice Settlement System XIS-IMR: Xchanging Ins-sure Insurers Market Repository

18. Satisfaction dimension: Is reform making a difference? Funded by Lloyds – focus on branding and business processes 10 minute telephone survey – up to 55Q 2005 inaugural survey – establish the baseline Annual survey until 2009 – monitor customer satisfaction Customer: Lloyds broker, non-Lloyds broker, coverholder, insured & reinsured. Questionnaire design based on research project on what matters most to the clients. Access – issue for Lloyds brokers Quote – Speed & how comprehensive Policy documents – Speed, match to quote, speed to agree changes Claim – how well informed & speed of payment

19. Any questions?