1. With LMG Secretariat LMG Forum July 2011 Christopher Croft, LMG Secretariat Steve Spicer, Miller Bent Isachsen, Beazley Rob Gillies, LMA

2. LMG Forum 2011 Agenda Modernisation update eEndorsements – a formula for change…? –Steve –Bent –Debate

3. 3 © Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging. ECF2 Current Status 26 July 2011 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 7 carriers plus XCS using in production Rollout in progress with Atrium and Taurus going live during August. Document File Viewer (DFV) DFV is live Documents are being processed online Rollout in line with CAS & SSO schedule Claims Workflow Services (CWS) Service Deployed to production Travelers, Faraday and Chaucer live this week Full rollout begins in August MAT under way for ECF001, ECF002, ECF003, ECF004, ECF005 and LADD Baselined plan in place and being delivered Rollout due to begin in September. 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 Release 1B (R1B) Miller continue with live operation and have been joined by Price Forbes, UIB and Guy Carpenter. Aon are testing prior to implementation Lockton, Ropner, Towers Watson & Cooper Gay have begun testing this week. eAccounts Release 2 (R2) Analysis of implementation options for the full R2 service has been completed The Market team and Xchanging are working together to produce a viable plan to deliver.

5. LMG Forum 2011 New MR C version New version coming – version 1.4 Release later in the summer for implementation by 1 st January 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 Lloyd’s 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 Non bureau progress Pilot implementing Communications across the market in the autumn – including September Forum

7. LMG Forum 2011 Autumnal cheer 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

8. LMG Forum 2011 Questions?

9. www.miller-insurance.com Miller Insurance Services Limited is authorised and regulated by the Financial Services Authority eEndorsements – a Formula for Change? Steve Spicer July 2011

10. www.miller-insurance.com

11. “The one unchangeable certainty is that nothing is unchangeable or certain” John F. Kennedy

12. www.miller-insurance.com Strategic Aims Improve client service Increase efficiency Reduce errors etc.

13. www.miller-insurance.com Tactical Reluctance We’re too busy We don’t do it like that We tried that once before Suspicion of ‘real’ motives etc.

14. www.miller-insurance.com Transformation… As Is……To Be

15. www.miller-insurance.com “Our wretched species is so made that those who walk on the well-trodden path always throw stones at those who are showing a new road” Voltaire

16. www.miller-insurance.com A Magic Formula?…

17. www.miller-insurance.com The Magic Formula?… Ch = V x P x D > R Beckhard & Harris Change Equation

18. www.miller-insurance.com Beckhard & Harris Change Equation Ch ange occurs when V ision – the ‘what’ X P racticality – the ‘how’ X D issatisfaction – the ‘why’ > R esistance – the ‘why not’

19. www.miller-insurance.com Applying the theory… Vision Exploit modern technology to improve efficiency whilst supporting Market strengths needs Local context Active (vocal) support from business leaders Key users in the project team who want it to happen

20. www.miller-insurance.com Applying the theory… Practicality Lots of Market work on process Technology solutions are out there BUT Technology by itself is not enough – needs process and organisational change as well Integration of messaging into the workflow is essential for achieving significant benefits

21. www.miller-insurance.com Applying the theory… Dissatisfaction vs. Resistance Broker value is in negotiating, not in transporting straightforward admin Regurgitating paper and re-keying into multiple systems is highly inefficient and error prone How can client service be improved if we don’t know how long it takes to agree an endorsement?

22. www.miller-insurance.com So, is that sufficient?

23. www.miller-insurance.com Ch = V x P x D > R Variable resistance

24. www.miller-insurance.com A new variable… Ch = V x P x D x 3P > R

25. www.miller-insurance.com The 3P’s… Patience because mistakes will be made by all parties Pragmatism because the process doesn’t work in all situations Perseverance because this change is achievable!

26. www.miller-insurance.com “Never doubt that a small group of thoughtful committed citizens can change the world. Indeed, it’s the only thing that ever has” Margaret Mead

27. www.miller-insurance.com Relative success?

28. www.miller-insurance.com Benefits Reliance on brokers operating only in box hours removed Agreement process now spread to 25 technicians Endorsements agreed, notified and advised to client more quickly than paper process Technician’s job enhanced We know how many WIP endorsements we have We know who’s got them Better audit trail Reduced paper

29. www.miller-insurance.com Where next? Marine nearly BAU Marine 70% of our total endorsements but only 25% of users Joining in on PI High % of non-complex in Marine – process improvements will help other classes Looking for Big Bang for the rest…March 2012

30. www.miller-insurance.com “To achieve great things, two things are needed – a plan and not quite enough time” Leonard Bernstein

31. LMG Forum - 27 th July 2011 Presented by Bent Isachsen 31

32. BPDA (Business Process Design Authority) Electronic Endorsements 1 st July– Beazley’s experience Topics 32

33. Governance group started December 2010 BPDA – Business Process Design Authority 33

34. 34

35. Tasked with solving any issues raised from the electronic market endorsement initiative What we are not o We do not decide the roadmap or when things should be implemented BPDA – Business Process Design Authority 35

36. Beazley added about new 30 underwriters We provided light touch training sessions Expectations of volume As anticipated we had a slow start, but this is starting to pick up. 1st July - 3 new classes 36