Market Reform – 2009

1. Market Reform – 2009 JJ Masters 14th January 2009

2. What has Xchanging done in 2008? Xchanging Major Projects – 2008

3. Where are we today? Considerable progress over the last 3 years but … • Essential we have to finish what we’ve started • Substantial amount of clerical checking and manual data entry still required • Legacy bureau systems seen as cumbersome, old fashioned, time consuming and expensive to change • Increasing impatience with Londonisms and a widespread desire to embrace an international process model capable of operating everywhere • Increasing clamour among LMA members for self-service options • Xchanging perceived as reluctant to change and insufficiently incentivised to do so • Need to find ways to speed up the rate of change for the market

4. Drivers Shaping 2009 Roadmap • Bring all premiums and claims into scope for electronic processing • Remove more “Londonisms” • Remove need for Brokers to do the accounting splits • Reduce Rejections and Keying Errors • Increase electronic messaging to reduce keying from documents • IMR Upgrade • Limits IMR changes in first half of 2009 • Improved Usability and User Experience • Consistent across all market channels • Accurate and reliable information to drive market take up • Down to each individual organisation Finish What We Started…

5. Guidelines for the Future of the XIS Platforms • Our intent is to be more “open” by that we mean: • Ever reducing “Londonisms” e.g. promoting eAccounts • Being exemplars in promoting the use of ACORD international standards, and work with ACORD to extend standards to support the market e.g. Workflow • Using non-proprietary components such as the Web Connectivity gateway that facilitate interoperability • Moving over time to increasing self service for the services and the data associated with them • Developing our charging models to suit this evolution and to meet our customers needs

6. We have a 2009 high-level plan with the MRO Working with market forums and stakeholders

7. 2009 Market Reform Roadmap Quarter 4 2008 Quarter 1 2009 Quarter 2 2009 Quarter 3 2009 Quarter 4 2009 Oct Nov Dec January February March April May June July August Sept Oct Nov Dec IMR Upgrade – Phase 2 Design Build Testing UAT/MAT Imp Security Model Design Build Testing UAT/MAT Imp eAccounts – Auto Load (Lloyd’s & Companies) Design Build Testing UAT Imp IMR & eAccounts Claims Workflow Triggers – ACORD Messaging eAccounts – Settlement Release (Companies) Design Design Build Build Testing Testing UAT/MAT UAT/MAT Imp Imp eAccounts – Settlement Release (Lloyd’s) Design Build Testing UAT/MAT Imp eAccounts – Accounting Splits Service Design Build Testing UAT/MAT Imp Pilot eAccounts – Service Company Roll Out Roll Out Claims Workflow Service – Task Management Claims Workflow Triggers Build Build Testing Testing Imp Imp Roll Out Roll Out Claims Database Project Claims Workflow Service – Task Management 2 Design Build Build Testing Testing Imp Imp Claims Services& Data Provision Roll Out Claims Workflow Service – Claims File Design Build Testing Imp Roll Out Claims Workflow Service – Write Back Design Build Testing Imp Pilot ECF Legacy Take-Up

8. Existing Xchanging Applications – end 2008 XDH ACORD Gateway Insurance Portal Claims Portal POSH/ LIDS Prem. Tracker XIS WF IMR XCS WF XCS Class Casa-blanca ECF CLASS@Lloyd’s ILUCLASS LIRMACLASS • Diagram shows the existing applications that support the core services • Issues with current components: • No single point of entry to the applications, with each having a URL and different login • No veneer over the services to tie them together into a coherent, seamless offering • Duplicate applications perform the same function e.g. POSH and LIDS • Number of core components distributed across all applications e.g. security, messaging, settlement, reporting • All services dependent on mainframe which is expensive to run/change, and has limitations e.g. batch • Existing services supported by a convoluted, and inconsistent interface architecture around the mainframe Next the changes for 2009 ……

9. IMR 2009 MRO Projects – Claims Workflow Service XDH ACORD Gateway Insurance Portal Claims Portal POSH/ LIDS Prem. Tracker XIS WF CWS XCS WF XCS Class Casa-blanca CLASS@Lloyd’s Claims Data ILUCLASS LIRMACLASS ECF • Claims Workflow Service (Q1, Q2, Q4 2009) • Provides hosted workflow for companies to manage their claims work load • Creates the strategic claims database from triggers in the CLASS applications • Provide messaging based on all claims events to integrate to customers’ workflow • Q2: functionality to view IMR documents and data within the service, removing need to access directly • Q4: functionality to write back responses on claims removing need to access CLASS directly • The workflow functionality will also be available via messages including the write back functionality

10. IMR 2009 MRO Projects – eAccounts XDH ACORD Gateway Insurance Portal Claims Portal POSH/ LIDS Prem. Tracker XIS WF CWS XCS WF XCS Class Casa-blanca CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF • eAccounts – Splits Service creates Premium database (Q3 2009) • With the accounting splits service, we create a new database containing accounting entries • All ACORD Technical Accounts will be loaded into the database, along with the splits information • Data auto-loaded to POSH & LIDS (Q1) to complete the processing • ACORD Financial Accounts will be processed to release the payments (Q2 POSH, Q3 LIDS) • Going forward this will become the strategic, consolidated data store for premium information • Premium and Claims Databases are complete integrated to provide single source of data • Option to key all LPANs into this database and auto-load everything to the mainframe

11. IMR 2009 MRO Projects – Security Framework Security Framework XDH ACORD Gateway Insurance Portal Claims Portal POSH/ LIDS Prem. Tracker XIS WF CWS XCS WF XCS Class Casa-blanca CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF • Create Enterprise Security Access component (Q4 2009) • New component that will be utilised by all other components as the master reference for security data • Contains company details including ACORD addressing information and user information • Is the master reference for risks and claims and who is performing which role on what • Delivers single sign on for all applications so that a user only has to log in once to use all the services • Project is currently known as the “IMR Security Model” and also has components in Placement Services

12. IMR 2009 Xchanging Projects – Portals Security Framework XDH ACORD Gateway Insurance Portal POSH/ LIDS Prem. Tracker XIS WF CWS XCS WF XCS Class Casa-blanca CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF • Consolidate Portals (Q4 2009) • Provide a single web site for all of the [IP]2 services, giving a seamlessly, integrated feel • Dependent on company and role of a user, only the relevant services will be presented after logging in • Enable an amount of customisation by the user of the information and links they see • Provide a consistent brand and user experience • Decommission the existing Insurance and Claim Portals

13. IMR 2009 Xchanging Projects – Usability Security Framework XDH ACORD Gateway Insurance Portal POSH/ LIDS Prem. Tracker XIS WF CWS XCS WF XCS Class Casa-blanca Description of Services On-Line Help CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF • Enhance On-line Usability and User Experience (Q4 2009) • On-line help component will be linked into all the applications to provide context sensitive help • On-line help will provide coherent, consistent assistance to all users covering all processes and services • Description of Services will provide users with comprehensive information about all of the [IP]2 services • Provide up to date information from Xchanging, including the operating status of the services • Enable the use of discussion threads and Wikis for our users to share useful information on the services • It will also provide targeted marketing to users based on their role and company

14. IMR 2009 MRO Projects – Claims Database Project Security Framework XDH ACORD Gateway Insurance Portal POSH/ LIDS Prem. Tracker XIS WF CWS XCS WF XCS Class Casa-blanca On-Line Data-Marts On-Line Help Description of Services CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF • Claims Database Project - Provide first on-line data marts (Q3 2009) • As well as the existing distribution channels for D&I reports (XDH, email, etc) add on-line access to data, with Claims Data being the first of these • Provide users with the ability to slice, dice and drill through the data and create their own reports • Primary source of data will be the Claims Data and Placement and Premium Data components • Leverage the security framework to ensure correct access to data by organisations

15. IMR Xchanging Applications at the end of 2009 Security Framework XDH ACORD Gateway Insurance Portal POSH/ LIDS Prem. Tracker XIS WF CWS XCS WF XCS Class Casa-blanca On-Line Data-Marts On-Line Help Description of Services CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF The following slides show what the next steps could be to take the London Market forwards …..

16. IMR Possible Next Steps 1 – Premium Workflow Services Security Framework XDH ACORD Gateway Insurance Portal POSH/ LIDS Premium Workflow Services CWS XCS WF XCS Class Casa-blanca On-Line Reports On-Line Help Description of Services CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF • Premium Workflow Services • Extend XIS workflow to provide the market workflow functionality for queries and status updates • Enable opening of documents from workflow so no direct access required to the IMR by end users • Provide messaging interfaces for premium processes so that customers’ applications drive the processes • Decommission Premium Tracker

17. IMR Possible Next Steps 2 – Extend Claims Workflow Services Security Framework XDH ACORD Gateway Insurance Portal POSH/ LIDS Premium Workflow Services Claims WorkflowServices Casa-blanca On-Line Reports On-Line Help Description of Services CLASS@Lloyd’s Premium Data Claims Data ILUCLASS LIRMACLASS ECF • Extend Claims Workflow Service to replace XCS Workflow and XCS Class • Provide single interface to perform all claims actions through Workflow for XCS • Technicians no longer have to use IMR, XCS CLASS and Workflow to do their work • Decommission XCS Class and old XCS Workflow rules

18. IMR Possible Next Steps 3 – Roll Out Claims Workflow Services Security Framework XDH ACORD Gateway Insurance Portal POSH/ LIDS Premium Workflow Services Claims WorkflowServices On-Line Reports On-Line Help Description of Services Premium Data Claims Data CLASS@Lloyd’s ILUCLASS LIRMACLASS • Roll out Claims Workflow Services as the only Claims tool for external users • Remove all direct access by end-users from the claims mainframe applications • Decommission ECF in the IMR as it will have been superseded by the Claims Workflow Service • Decommission Casablanca service for access to the mainframe • Create consolidated claims functionality in Workflow to replace remaining CLASS functionality • Migrate source of messaging to the claims database • CLASS remains to perform the settlement functions

19. IMR Possible Next Steps 4 – Extend Premium Workflow Security Framework XDH ACORD Gateway Insurance Portal Premium Workflow Services Claims WorkflowServices On-Line Reports On-Line Help Description of Services Premium Data Claims Data POSH/ LIDS CLASS@Lloyd’s ILUCLASS LIRMACLASS • Extend Premium Workflow to include data entry screens for POSH/LIDS • Remove all direct access by end-users from the premium mainframe applications • Create consolidated premium functionality in Workflow to replace POSH/LIDS functionality • Migrate source of messaging to the premium database • POSH/LIDS remain to perform the settlement functions

20. IMR Possible Next Steps 5 – Migrate Functionality Security Framework XDH ACORD Gateway Insurance Portal Premium Workflow Services Claims WorkflowServices On-Line Reports On-Line Help Description of Services Premium Data Claims Data POSH/ LIDS CLASS@Lloyd’s ILUCLASS LIRMACLASS • Migrate Functionality from Mainframe Applications into Workflow and Databases • Move the Accounting functionality from POSH and LIDS into the Premium Database • Recreate the claims agreement processes in Workflow and the Claims Database • Change the source and destination for messaging to the new Databases (excluding Settlement) • Extends the available hours for all processing

21. IMR Possible Next Steps 6 – Settlement & Billing Security Framework XDH ACORD Gateway Insurance Portal Premium Workflow Services Claims WorkflowServices On-Line Reports On-Line Help Description of Services Premium Data Claims Data Settlement Billing • Implement New Settlement and Billing Solutions • Add single settlement engine for Premiums and Claims • Implement a single billing component to provide consolidated billing for all services • Enable customers to see their consolidated bills on-line • Decommission the mainframe

22. IMR Possible Application Architecture for the Market Security Framework XDH ACORD Gateway Insurance Portal Premium Workflow Services Claims WorkflowServices On-LineData Marts On-Line Help Description of Services Premium Data Claims Data Settlement Billing • Security Framework (Market Directory) • Single enterprise component used by all components • stores the information on organisations and users regarding access to services and data • Single sign-on for all applications • Messaging • ACORD will become our preferred messaging standard • ACORD Gateway supporting all ACORD messages covering Placement, Premiums and Claims • XDH for transforming the ACORD messages into any format required by our customers Reporting (On-Line Data Marts) • Provide direct access to the data through hosted data marts • Service will include pre-canned reports, and also ad-hoc reporting • Insurance Portal • Single web site for access to all our services, recognising the user and only providing the relevant ones • Single login required to access all the services with no need to login to each service • Extensive on-line help • Comprehensive information on the services offered by [IP]2 • Workflow • Enables all business processes supported by [IP]2 for Placement, Premiums and Claims • Workflows facilitates the actions taken by the market, Xchanging and other third parties • Events driving the on-line workflow are also available as messages for companies own systems

23. eAccounts

24. A&S is only the start of it… • A&S is well used within the market and rollout has been moving at pace • Currently 95% of original premiums are submitted electronically • Currently 75% of additional and return premiums are submitted electronically • Brokers have engaged with developing gateways for use of ACORD messages for our A&S DRI services and have engaged software providers to improve the way they process submissions • Xchanging have an industrialised set of tools and processes for dealing with electronic submissions • The IMR Security Model programme will allow us to overcome the remaining barriers to use • The IMR upgrade programme will improve the architecture of A&S and put us on a sound footing for the future • BUT…. • This is a solution for scanned documents and much of the key information has to be re-keyed by Xchanging • Londonisms remain a substantial diversion for Brokers

25. Objectives of the eAccounts service • Move to the use of structured data for key fields • Use international (i.e. ACORD) standards for submissions • Reduce the amount of Xchanging keying that occurs on submissions and improve data quality (i.e. move to a world of what you submit is exactly what you get back) • Remove the concept of Work Order and LPAN • Remove the burden of performing Accounting Splits from Brokers • Provide a consistent splits service and reduce the query / rejection loops • Continue to fulfil reporting requirements (e.g. Lloyd’s and existing reports) • Minimise carrier impact • Make the service ‘pick n mix’ for Brokers with no requirement to go ‘Big Bang’ • Removal of BSM (optional) and some London specific messages

26. What has been done … • ELPAN2 Release 1 • TA message spec defined and independently reviewed (ACORD certified) • Incorporated into existing gateway (to minimise Broker setup) • Has been live since Dec 2007 and is currently processing live transactions • Accounting Splits • Prototype has occurred to validate XIS understanding of the splits process (this is not envisaged to reflect the process that we will use in production) • XCS engaged on their impacts • Auto-Loading (ELPAN2 Release 2) • Prototypes developed for POSH (company) • Prototypes developed for LIDS (Lloyd’s) • Approved projects for delivery in Q1 2009 • Planning • Analysis of the impact of splits has occurred and an XIS architecture proposed • Indicative plans have been developed for discussion with the MRG

27. Our vision for the end of 2009 • ELPAN2 • FA in place for company (Q2 proposed) • FA in place for Lloyd’s submissions (Q4 proposed) • Accounting Splits • Commercial arrangements in place to support service • XIS / XCS Technicians trained • Technical changes – delinking, consistency for central settlement, BSM aggregation, some report changes and workflow mgt • Auto-Loading (ELPAN2 Release 2) • Auto-Load in place for company and Lloyd’s submissions (Q1 proposed) • Planning • Rollout plans complete / in progress / being defined with Brokers • Definition for any future plans for further enhancing the service in 2010

28. Future considerations • The following may be candidates for future releases: • Level 4 acknowledgments as an alternative to a BSM • Defining an ACORD query loop • Reporting improvements to increase visibility for Brokers and Carriers

29. Claims Workflow Triggers

30. Claims Workflow Triggers – Key Features • All updates to the Claim file will be provided in addition to new Claim transactions • Claim movement loaded by the Broker • Bureau lead appoints agreement parties • An authoriser actions the claim (approve or query) • The claim is fully agreed • Provided as frequently as requested (up to every 5 minutes) • Information will be cross-market, i.e. notifying status of the same claim in all bureaux (subject to confirmation in initial release) • Data will be an extension of existing daily claims CSV file including provision for all responses and status changes • Existing daily claims CSV file will continue to provided • Initial format for distribution will be as a CSV file via XDH • Intention to provided as ACORD Claims Movement messages in the future • Available to Carriers and Brokers

31. Conclusion • Recognise that different companies will want to interact with XIS in different ways, so ensure the services are open e.g. Claims Workflow Trigger Messages vs. Claims Workflow Service • Focus on the customer experience and usability • Some of the strategic components exist already e.g. IMR, ACORD Gateway, Workflow, etc • In the short term, leverage the existing legacy platforms • Knit together these components to create an integrated set of services for Premium and Claims • Use workflow to provide a layer of abstraction from the mainframe applications, enabling functionality to be migrated in the future

32. The End • Any Questions? • John Masters • Xchanging • John.Masters@xchanging.com