1. Electronic Placing in the London Market July 2007 Rob Gillies Lloyds Market Association

2. What is electronic placing?

3. Data and negotiation What is electronic placing? MRG Vision 2007-2009: All risks submissions sent electronically; wholly electronic trading for some simple risks with no manual intervention; face-to-face when required for large and complex risks

4. What is electronic placing? Face to Face Complex Face to Face, Telephone, Electronic Moderate Electronic Simple Negotiation Data Exchange

5. Improved regulatory compliance Why electronic placing? = Improved client service and increased shareholder return Reduced costs Increased operational efficiency Strategic business opportunities

6. Why electronic placing? Whats in it for me The organisational perspective – the personal perspective Relevance of benefits reflects organisations business model Benefits model

7. What has been achieved so far? Development of the Market Reform Contract to meet ACORD standards Review and standardisation of the endorsement process Development of a Wordings Repository Development of the data sets and processes for EP to meet ACORD standards

8. What has been achieved so far? Successful piloting of peer-to-peer placement by five brokers and six managing agents The use of electronic placing standards by Aon, Marsh, Guy Carpenter and other organisations for inter-office routing of risk information The electronic placement of 98% of Benfields Japanese renewals for second quarter 2007 Announcement of Aons intention to use the Ri3K electronic placing system to deliver all Treaty business. They are also looking to expand scope Adoption of RI3K by Lloyds China Adoption by Aspen Re of electronic messaging standards Active involvement in or serious expression of interest in electronic placing by total of fifteen managing agents, three insurance companies and six brokers

9. Project Scope to create clarity in the market about the benefits and implications of, and options for, the adoption of EP to extend significantly the use of EP amongst organisations in the London insurance market. Project runs to end of Q2 2008 Objectives

10. This is a London market business issue Project Scope Benefits based business case for adoption Agnostic towards technology Adoption of ACORD standards, implemented consistently All business in scope

11. Briefing pack Resources Benefits model Landscape analysis Promotion and support Implementation guides and groups

12. The technology exists and is available Entry costs are affordable Technology

13. www.the-lma.com Peter HoldstockConsultant 020 7327 8383 peter.holdstock@lmalloyds.com Rob GilliesHead of Market Reform Policy 020 7327 8377 robert.gillies@lmalloyds.com Contacts Please leave a business card to be added to our distribution list

14. Questions

15. Electronic Placing in the London Market July 2007 Rob Gillies Lloyds Market Association