E-Policies: Faster with fewer dead trees M ark Barwick, Project Manager, LMBC

1. E-Policies: Faster with fewer dead treesMark Barwick, Project Manager, LMBC

2. Agenda • Types of evidence of cover • What language in the slip triggers EOC? • Scope of e-policies • Before using e-policies • E-policies submission & signing process • Benefits of e-policies • MRG Targets and milestones • Flyer to be inserted into all paper policies • Example e-Policy • Further Information • Questions

3. Types of evidence of cover • Original evidence of cover • Contract document • Broker Insurance Document (BID) • Policy/ E-policy • Certificate (Binding authority only) • Contract changes • Contract change document agreed by insurers (MRCE) • Policy Endorsement/ addenda • Contract change document finalised by broker (with BID status)

4. What triggers evidence of cover • Contract Document: • INSURER CONTRACT DOCUMENTATION heading in RISK DETAILS section of MRC specifies “This document details the contract terms entered into by the insurer(s), and constitutes the contract document” • Policy: • INSURER CONTRACT DOCUMENTATION specifies “XIS to sign Lloyd’s policy and/or XIS to sign Company policy.” • Wording must be attached, or clearly referenced, when insurers commit to contract • E-policies • INSURER CONTRACT DOCUMENTATION MRC heading specifies “XIS to sign Lloyd’s policy and/or XIS to sign Company policy, which may be in electronic format.” • Broker has registered for E-policy. No special instructions on the PCF/Work Order requesting a paper policy • Broker Insurance Document (BID) may optionally be used by broker

5. Scope of e-policies In-Scope • Covers marine, non-marine and aviation • Insurance and reinsurance • Direct, facultative and excess of loss • “S&A” or “Policy only” • Policies, policy endorsements and slip policies (companies only) Out of Scope • Policy endorsements where the original policy was on paper • Policy requests by renewal receipt • Binding authority wordings

6. Before using e-policies • Broker must complete required registration form • Broker must be an existing user of A&S, either Direct Load or DRI • Adobe Acrobat Reader (version 5 or above) must be installed to allow brokers to view the e-policy • Determine what central email address you want the signed e-policy to be sent to • Consider whether you want to tell your clients about the change • Train your policy technicians in Direct Load or your DRI solution

7. E-policy submission process • Ensure your MRC makes it clear you require a policy, and the policy is attached to the MRC when placed. • Submit a word/PDF copy of wording via A&S as part of work package • Ensure Work order specifies either a “Policy Only” submission or a “Premium and Policy” submission. • Ensure a Policy Control Form is completed and present in work package • If the (re)insured has specifically requested an embossed policy then specify a paper copy is required on the Policy Control Form

8. E-policy signing process at Xchanging • Xchanging sign the policy electronically and apply an electronic seal to the document, similar to the embossed seal found on paper policies. • Xchanging load a copy of the signed policy to the UMR folder of the repository with a document type of “Signed Policy”. The submitting broker and the participating insurers can all view the document. • Xchanging email a copy of the electronically signed document to the central email address provided by the broker when they registered for e-policies. • Brokers may send the e-policy to their client electronically, or where the client preference is for paper this may be printed and sent on as a paper document

9. Benefits of e-policies • Faster turnaround time since document is sent/received much quicker allows brokers to meet their contract certainty obligations • Reduction in paper handling costs • Still allows a paper policy to produced where local regulation demands it • Electronic record of policy held in the repository for subsequent processing and claims AND SAVE TREES!

10. Alec Finch (London)Alwen Hough JohnsonARB InternationalBDB LtdBenfieldBMS IntermediariesBowood Partners LtdChesterfieldCitynet InsuranceCogent ResourcesConnor Hale KerslakeContractsureCooper GayEBA (European Brokers Associated)EPG InsuranceGina Fitzgerald GlencairnGrosvenor BrokersGuest KriegerGuy CarpenterHBA LtdHeath LambertHoulder InsHowdenHSBCIntegro GroupJames HamdenJardinesJonh Holman & SonLark InsuranceLMIBLonsdaleLothbury UK • Lucas FettesMarshMillersNewman Martin & BuchanPaul NapierPrice ForbesPriest &CoPrime ProfessionsPWS/THBR K CarvillR K HarrisonR L DavisonRFIBRobertson Taylor InsuranceSafeonlineSenior Wright LtdTyser &CoWillis Brokers registered as at 25th June 2008

11. 2008 Volumes to date

12. Biggest users of e-policies

13. MRG targets and milestones

14. From July 2008 all paper policies received from brokers will have this flyer inserted into the documentation before it is returned to the broker • Similar approaches have proved successful for other reform initiatives such as A&S usage and adoption of new slip standards

19. Further Information The following documentation is available from the Market Reform website: • Xchanging E-policies User Guide. • List of brokers who have signed up for E-Policies http://www.marketreform.co.uk/PI_P_ElecPol_Brokers.htm • Specimen E-Policy • Frequently asked questions document • E-Policies broker registration form To view or download these documents go to: www.marketreform.co.uk For further information contact: Mark.Barwick@Lmbc.co.uk - 0207 397 0207 or Michael.Langston@Xchanging.com - 01634 887 662