1. With LMG Secretariat LMG Forum November 2011 Christopher Croft, LMG Secretariat John Muir, Willis

2. LMG Forum 2011 Agenda Modernisation update Main display

3. 3 © Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging. ECF2 Current Status 21 Oct 2011 Claims Workflow Triggers (CWT) 21 carriers receiving live messages 7 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 44 carriers plus XCS rolled out in production Rollout continues on target to complete by the end of the year with 84% of organisations signed up. Document File Viewer (DFV) DFV is live and converting 5000 – 7000 documents a day Some intermittent teething problems are being resolved with Adobe Rollout in line with CAS & SSO schedule Claims Workflow Services (CWS) Service deployed to 32 organisations Rollout in line with plans to complete by the end of the year ECF001, ECF002, ECF003, ECF004, ECF005 and LADD are in use with 21 organisations Phase 2 implementation began on 17 th October. 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 Current Production use Miller, Price Forbes, UIB, Guy Carpenter, Aon UK & Lockton continue with live operation and have been joined by Towers Watson. Aon Benfield and Ropner preparing for go live. The brokers joining convoy three are NMB and Houlder. The start date is end of October. eAccounts Release 2 (R2) Xchanging continue working together with the Market to deliver R2 using the ‘big bang’ approach to delivery. Analysis has completed for Corrections, Deferreds and R1B to R2 migration The remainder of change requests continue and are anticipated to conclude in Q4

5. LMG Forum 2011 Non Bureau accounting Live partnerships involving: –Aon –Willis –XL –ACE Ongoing discussions with wider steering group Room for others See your newsletter…

6. LMG Forum 2011 Placing standards New open market, binders & lineslips versions published New MRCE imminent

7. LMG Forum 2011 Future Process model Revised requirements document published Steering Group to act as guardian of the vision and advise LMG on implementation Implementation plans to take account of other project work

8. LMG Forum 2011 2012 workplan In development Headed for LMG on 8 th December

9. LMG Forum 2011 2012 Forums 2012 dates: –18 th January –29 th February –29 th March –18 th April –23 rd May –28 th June –27 th September –31 st October –28 th November –18 th December July & Aug TBA

10. LMG Forum 2011 Speeches, rallies etc Xchanging Conference 9 th- November Barnabas Hurst-Bannister IIL Lecture 22 nd November

11. LMG Forum 2011 Questions?

12. From Honeycombs to Infinity and Beyond….! Electronic Endorsements LMG Forum 4 th November, 2011

13. The London Market - Progression Honeycombs

14. The London Market - Progression MRCE

15. The London Market - Progression eMRCE via email

16. The London Market - Progression eMRCE via Messaging

17. The London Market - Progression MRC via messaging…………..?

18. Willis: eMRCE via Messaging Marine Pilot effective 01/10/10 Marine BAU effective 01/04/11 Specie (Fine Art, Jewellers Block, Specie, Cash in Transit, Armoured Vehicles) effective 01/07/11 Bloodstock, Livestock, Agriculture and Aquaculture effective 01/08/11 Global Property effective 01/09/11 PI effective 19/09/11 North American Property effective 03/10/11 Global Terrorism effective 03/10/11 North American Terrorism effective 03/10/11 D&O Planned for 01/12/11 Liability Planned for 05/12/11 Facultative Reinsurance Property and Liability TBC 2011 Aerospace 16/01/12 We will be messaging across all classes by no later than 5 th March 2012

19. Specie Implementation High-profile roll-out and implementation within the London Market Enthusiastic team with strong leadership Good support from the central Project Team Quickly embedded within the Business Process High volumes being sent Frustrations at deteriorating response times

20. Bi-lateral Implementations Bloodstock Small Market Used to corresponding and agreeing endorsements electronically (via email) Quickly embedded in the Business Process Volumes increasing Terrorism Larger market Not full market take-up – makes the process disjointed for Brokers Greater support from underwriters and central Project Team required to make bi-laterals in larger classes a success Internal transition from email challenges

21. What’s going well There are no showstoppers other than the usual culture and behaviour issues Account Handlers are seeing efficiency benefits where underwriters respond within the SLA In adopting Divisions, the use of electronic endorsements has been embedded in the business process Total adoption seems to work better than partial The number of insurers engaging in the initiative is increasing Endorsements can and are being submitted from back office locations A credible audit trail is captured automatically – we now know the status of endorsements

22. What could go better Brokers need to deliver volume and stop engineering excuses as to why they are unable to do so Underwriters need consistently to meet the 24hr SLA Underwriters need actively to encourage electronic submission of contract changes so that they can deliver and capture electronic agreement

23. What are we even doing here? In the time it takes to finish this 10 minute presentation you could have trained your line underwriters! By the time the Q&A is over we could have trained our brokers It’s time that we just got on with this!

24. Benefit cases Progress of an endorsement can be tracked by colleagues in multiple locations Ease of identification of underwriter that agreed the endorsement Clear and documented audit trail Greater clarity for claims departments No discrepancies between broker and underwriter records Removes requirement for re-keying data Follow underwriters could now very easily capture all endorsements to contracts

25. What could underwriters do to help? Heed the lessons from ECF adoption Push your line underwriters to start behaving as though this is what your management insists that they do Thank brokers who submit endorsements electronically Explain to brokers who submit paper endorsements that they need to start submitting them electronically

26. It’s not just about me The Electronic Endorsement initiative is not just about me Change / Transformation is not a spectator sport! Standing still is the commercial equivalent of going backwards The London Market needs to succeed Do we not have a collective duty to help with it’s progress? The only way to do so is for many more of us to stop spectating from the sidelines and get out there and actively participate