Internet Solutions Beacon Mutual Agent Portal Solution Prepared For:

1. Internet Solutions Beacon Mutual Agent Portal Solution Prepared For: AASCIF IT Committee Seminar Nashville, TN September 23 & 24, 2010

2. Historical Context Predecessor solution presented numerous functional and technical gaps Lack of consolidated User Experience Simplistic functionality Legacy technology Not extensible Increased time and cost to market High maintenance costs Emerging business requirements to advance on-line capabilities Broaden electronic information delivery (On-line Documents, Agent Reporting) On-line customer transactions (Agent Quoting, FROI, Payments) Role based security Recommendation to modernize web platform infrastructure presented and approved by Beacon’s Senior Management team 2

3. Implementation Strategy High Value Transactions Q4 2010 eDistribution Q4 2009 Modernized Baseline Functionality Q2 2009 3

4. Beaconnect 1.0 Overview • Business Goals • Advance Beacon’s secure web portal to meet minimum industry competitive requirements for Agent self service • Provide incremental value add over current solution (e.g. aggregate data) • IT Goals • Establish the necessary skill sets and technology platform to meet future web servicing business requirements • Lower IT operational expenses by retiring legacy BOL application and reducing external consulting burn • Technology Platform • Sharepoint 2007 • .Net / C# Modernized Baseline Functionality Q2 2009 4

5. Beaconnect 1.0 Feature Summary Modernized Baseline Functionality Q2 2009 5

6. Beaconnect Look and Feel

7. Beaconnect Information Inquiry

8. Beaconnect Agent Dashboard 8

9. Beaconnect Delegated User Administration

10. Beaconnect eDistribution Overview eDistribution Q4 2009 • On-Line Documents • Policy documents available in electronic form • Declaration pages, cancellations, endorsements, etc. • No ability for end users to “opt out” of paper delivery • Blast email • Campaign management software utilized for mass communications • Ability for segmented campaigns based on user roles • All Agency Users, Agent Principals, Top 100 Agents, RI Agents, etc. • Pre-defined templates give end user control to campaign administration • Dynamic content linking feature provides ability to email links to secure content Modernized Baseline Functionality Q2 2009 10

11. On-Line document architecture PowerComp • Document Module • Document Events • Document Meta Data • Document Templates Physical Document Processing eDocument Processing • Policy # / Effective Date • Document Group (e.g. Policy Info pages) • Document IDs (1 – n) Document Index Multiple document images concatenated into single image for display Image Repository (OnBase) Document Retrieval Service Document Sweep Process

12. Blast Email Secure Content Linking 12

13. Blast Email Challenges No direct control over receipt Bouncebacks can be temporal based on user environment (mailbox full, etc.) and recipients infrastructure status Grey list & spam filters Technique and quality varies from organization to organization Highly inconsistent rejection results from campaign to campaign Bounce Examples: 13

14. Agent Quoting High Value Transactions Q4 2010 Agent On-Line Quoting Solution 14

15. Agent Quoting Business Drivers On-Line Quoting is becoming a standard carrier offering in today’s market Solution gap contributes to declining market share for Beacon Gap widened in small business; significant portion of Beacon’s business Agents offering less opportunities to BMIC due to inefficiencies in paper process Alignment with corporate strategies Increase automation / reduce cost structure Improve ease of doing business with Beacon Maintain market share 15

16. Partner Solution Advantages Out of the box Agency Integration Technical Integration with industry dominant Agency Management Systems Process Integration to support Agents internal workflows Interface to support Agents without Agency Management Systems Understanding of Accord Application processing Starter kit capability Domain expertise in Accord information Modularized solution Procure only features necessary to support the quoting process Ability for future add-ons as required No overlap with core Policy Administration application Focus on Agency-Underwriter collaboration Improved Time to market 16

17. Functional Overview New Business Agency Upload Electronic from AMS Scanned ACORD application Direct input Quick Quote Real-time integration with Beacon’s rating engine Business rules determine agent authority Straight Though Processing (STP) Non Straight Through Processing (Non-STP) Quote letters 17

18. Solution Architecture Beaconnect Browser Login to Beaconnect; Access Quote function • Single Signon • Agency Upload • Agency Users only Seamless Signon Signon Service Security Service Agency Management Systems First Best Agent Real-Time Integration Transformation Station PC Integration Svc Agency Upload AMS Applied Power Comp • Quick Quote • STP Quote • Non-STP Quote • Quote Status • Quote Document Transact Now • Quote Integration • Workflow Integration • Muti-direction status • updates • Multi-Tier Rating • Integration ACORD XML Character Scan Electronic Accord Application Agent Facility Rackspace (Texas) Beacon Co-Host (Mass.) 18

19. Challenges Integration Security Cross platform interoperability Services Integrated testing Configurations differ per environment (e.g. hosted facility versus in-house) Moving from environment to environment Knowledge pockets Managing Expectations Agents Internal stakeholders 19

20. Next Steps Agent Pilot beginning in early October Production pilot Cross section of Agency users Full roll-out in late October Continued delivery of High Value Transaction Services in 2011 and beyond 20

21. End of Slides Questions? 21