Electronic Claims Service for Lloyd’s Market

1. ECF Key Messages • It’s coming • There will be pain to get the gain • Who is your business sponsor? • If you handle claims, the way you do your job will change

2. Overall Scope • Deploys CLASS in the Lloyd’s market • acts as a simple workflow manager of claims transactions • Delivers an interactive Insurers’ Market Repository to carriers (a shared electronic filing cabinet) • Interactive service available to brokers subject to XIS contract • Adopts ACORD standards for the transfer of electronic documents • To/From brokers’ repositories (at no charge to brokers) • To/From carriers’ repositories Page 2

3. LMA Project Scope • Integrates CLASS and IMR • a single electronic claims service for Lloyd’s managing agents • support Lloyd’s Claims Schemes • Does NOT change CLASS for brokers • Multiple interactive services: one for each market • LIMCLM: operational for IUA • defined and trialled for Lloyd’s Page 3

4. IUA Project Scope • 3 month pilot of Insurers’ Market Repository • To identify any additional IUA requirements • Expected start during Q2 2006 • Does NOT • change IUA CLASS (Operational since 1987) • change CLASS for brokers • Lots to do since Lloyd’s managing agents will be live with an electronic claims service from late Q3 2006 Page 4

5. LMA ECF Objective • To replicate today’s file electronically • Not a Blue Sky Claims System development • Based on existing products • Changes to CLASS out of scope (except look and feel) • Work with underlying software capabilities • Provide a base product on day 1 • To be evolved once experience gained • Post implementation of base product • Strategic review of on-going development • e.g. Third Party Access Page 5

6. Status todayKey Enhancements in 5 Phases Phase 1 - See all documents in one view Phase 2 - Leader control of file/improved searching Phase 3 - ACORD DRI (receipt of documents) Completed 2005 Phases 4/5 – Merged into a single phase CLASS @ Lloyd’s data through GUI, full DRI and Seamless link with documents in repository MAT starts 15 May 2006 (35 working days to go!) Live – mid-September Page 6

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8. Screen shot – Transaction Summary Screen Page 8 Screens are currently under development and are subject to change

9. Systems Processes & Procedures • Systems Processes and Procedures • High-level guide • NOT a systems user manual or adjusting manual • Workshops convened to review generic process and class of business variations • Confirmed generic process • Confirmed little variation by class of business • A key benefit was to identify operational issues • To be extended to include IUA • Review legal governance • Interchange Agreement • Initiated Legal Review of Electronic Responses Page 9

10. Systems Processes & Procedures (cont.) • Identify the following operational Issues (Hotspots): • Big Issue Resolved • Binders Change Request Raised • Bulks/Blocks Analysis in Progress • Document Rules Analysis in Progress • Delegation to XCS Change Request Raised • M.A. Workflow Change Request Raised • Partial Markets Change Request Raised • Non Broker Triggers Analysis in Progress Page 10

11. Features • Broker submits claim electronically • Enables parallel presentation to insurers • Reduces data transcription errors • Allow brokers to concentrate on complex claims • Improved insurer access to information • It’s the insurers’ file • Concurrent access to all subscribing insurers • 24/7 access, worldwide Page 11

12. Next Steps • Phase 5 delivery to MAT mid-May 2006 • Delivers first version • of an integrated electronic claims service for Lloyd’s • replicating existing file electronically • with improvements where possible • companies and syndicates can see the same claim • Things change and we won’t have thought of everything • There will be more issues and enhancements • Legacy claims • Issues and suggestions recorded Page 12

13. Monthly Timeline Page 13

14. Time and Budget Summary • On track for software delivery to process electronic claims across the Lloyd’s market • Within budget • Early implementation partnerships growing • Substantial market testing and implementation tasks this year • Will change working practices from paper to electronic for many claims practitioners • Will not deliver everything on day one - need on-going maintenance and review of Change Request log Page 14

15. Implementation • Broker-driven • with Lloyd’s and IUA carriers and XCS • by classes of business and risks • MRPO monitoring progress • New claims and their subsequent transactions • Existing paper based claims (legacy) to be tackled later • Early Implementations • Using today’s CLASS and repository in parallel with the enhancements • Gives early experience of electronic work and assess impact on procedures and processes Page 15

16. Early Implementers • Valuable lessons continue to be learnt from early implementers • 39 ECF partnerships created • 6 brokers/17 managing agents, 2 companies – experience gathers pace • Over 360 claims files • Generating over 600 transactions electronically to date • IUA Companies now actively participating in pilots – adding to the ground swell • LMBC (via BEFIT) working closely with MRPO to ensure success of project Page 16

17. Early Implementers Brokers • Benfield • Cooper Gay • Guy Carpenter • Marsh • Millers • Willis • Aon (waiting for full DRI) Carriers • Aegis • Amlin • Chaucer • Faraday • Hiscox • Kiln • Limit • MAP • St Paul Travelers • Markel • Brit Class of Business Marine Hull Aviation Direct Reinsurance PI Non Marine Property Binding Authorities FinPro • Ace • AIG • Advent • Atrium • Well’n • Heritage • Aspen Re • XCS Page 17

18. Allianz Global Aerospace Munich Re Swiss Re Beazley Liberty SVB XL Re Zurich Carriers Wanting to Participate Brokers Wanting to ParticipateArthur J GallagherGlencairn Page 18

19. Market Acceptance Testing (MAT) • On schedule to start at 8am, Monday 15 May 2006 • Two drops into MAT • Monday 15 May = Integrated IMR and Class@Lloyd’s functionality. • Monday 19 June = Full ACORD DRI functionality to latest published ACORD standards. • Same timeframe as A&S (Repository) MAT • Aiming to test common features together • Avoid testing the same functionality twice Page 19

20. Market Acceptance Testing - high level visual Page 20

21. MAT participants • Agreed participants:- • Managing Agents include; ACE, Advent, Amlin, Beazley, Danish Re, Faraday, Heritage, Hiscox, Limit, Markel, Marlborough, St Paul Travelers, SVB, Wellington and XCS • Brokers include; Aon, Benfield, Marsh, Millers, Willis (and possibly Glencairn) • Additional participants; XIS and MRPO (co-ordination) Page 21

22. Public Commitment Page 22

23. What should YOU do now? • Assess and plan for the impact on you • Nominate two people: business sponsor; project manager • How many adjusters have you got? • How many will need access to the system? • Can you connect to these new services? • How will you ensure they are trained in CLASS and the repository? Page 23

24. Future • Operational electronic claims by end 2006 for brokers, Lloyd’s & IUA • Roll out for processing new claims will continue into 2007 • Increasing pressure on any non participants • This is just the “Base Camp” - foundation to: • Migrate to ACORD business messages for claims • Eliminate CLASS differences across the multiple systems • Enable third party access e.g. loss adjusters • Move existing claims from paper to electronic • Offer client tracking of claims Page 24

25. Summary • On track for software delivery to allow electronic claims in the Lloyd’s market using ACORD DRI • Early implementation partnerships growing • Substantial testing and implementation task this year • Will change working practices from paper to electronic for many claims practitioners • Named brokers and Lloyd’s managing agents publicly committed to electronic claims from Q4 2006 • IUA coming on board Page 25

26. Contacts Ben Sayles Project Manager 020 7327 6685 Ben.sayles@lloyds.com Mike Smith 020 7327 6642 Michael.J.Smith@lloyds.com Or…. Claims@lmpoffice.com Page 26