LMG Forum July 2011

1. LMG ForumJuly 2011 Christopher Croft, LMG Secretariat Steve Spicer, MillerBent Isachsen, BeazleyRob Gillies, LMA

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

3. ECF2 Current Status 26 July 2011 • 17 carriers receiving live messages • 5 fully integrated into own workflow • Other carriers to join by arrangement with Xchanging Claims Workflow Triggers (CWT) • CAS & SSO are live • 7 carriers plus XCS using in production • Rollout in progress with Atrium and Taurus going live during August. Claims Agreement Services (CAS) & Single Sign On (SSO) 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 Claims Data Warehouse (CDW) • MAT under way for ECF001, ECF002, ECF003, ECF004, ECF005 and LADD • Baselined plan in place and being delivered • Rollout due to begin in September.

4. 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. New MR C version • New version coming – version 1.4 • Release later in the summer for implementation by 1st 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. Non bureau progress • Pilot implementing • Communications across the market in the autumn – including September Forum

7. Autumnal cheer • Coverholder Technology Forum 29th – 30th September (www.lloyds.com/coverholderstechnologyforum) • Insurance Technology Congress 11th – 12th October • Xchanging Conference 9th- November • Barnabas Hurst-Bannister IIL Lecture 22nd November

8. Questions?

9. eEndorsements – a Formula for Change? Steve Spicer July 2011

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

12. Strategic Aims Improve client service Increase efficiency Reduce errors etc.

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

14. Transformation… As Is… …To Be

15. “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. A Magic Formula?…

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

18. Beckhard & Harris Change Equation • Change occurs when • Vision – the ‘what’ • X • Practicality – the ‘how’ • X • Dissatisfaction – the ‘why’ • > • Resistance – the ‘why not’

19. 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. 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. 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. So, is that sufficient?

23. Variable resistance Ch = V x P x D > R

24. A new variable… Ch = V x P x D x 3P > R

25. 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. Relative success?

27. 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

28. 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

29. “To achieve great things, two things are needed – a plan and not quite enough time” Leonard Bernstein

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

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

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

33. 34

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

35. 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