E-Policies Update Mark Barwick, Associate Director, LIIBA

1. E-Policies UpdateMark Barwick, Associate Director,LIIBA

2. Agenda 1 What is an e-policy • Scope • Benefits • MRG Targets and milestones • Measurement • Implementation Planning • Detailed process • Further Information • Questions

3. What is an e-policy? There are three types of policy now available from Xchanging: Paper policy – wording and associated documentation submitted for signing as paper. E-policy Submission – Submitted electronically via the IMR but Policy Control form specifies broker requires a paper policy True e-policy – policy request submitted via the IMR and policy document returned to the broker electronically as a digitally signed PDF document.

4. 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) • Binding authority wordings • Policy endorsements where the original policy was on paper Out of Scope • Policy requests by renewal receipt

5. Benefits of e-policies • Faster turnaround time allows brokers to meet their contract certainty obligations • Reduction in paper handling costs • Still allows paper policy to be produced where local regulation demands it • Electronic record of policy held in repository for subsequent processing and claims AND SAVE TREES!

6. MRG Targets & Milestones • 31/12/2008 – 80% of policy submissions to be electronic. • 1/3/2009 – 100% of policy submissions to be electronic orsupported by ane-policy exemption form. • Paper policy submissions without exemption form will be rejected prior to normal policy checks being performed. • e-policy submissions will be signed electronically as a default. • Brokers should only request paper policy where insured requires embossed policy. • Q4 2009 – 90% of all policies both submitted and signed electronically.

7. Measurement TARGET – 100% of policy submissions electronic by 1/3/2009: • Broker level data not available for e-policy submissions • Progress against target based on manual count of e-policy submissions at market level TARGET – 90% of policies signed electronically by Q42009: • LIIBA producing monthly league tables showing % of true e-policies as a % of total policies signed for each broker • Binding authority wordings a late addition to the scope and therefore excluded • Binding authority data available and will be added as later development

8. MRG Target: 100% by 1/3/2009

9. MRG Target: 90% by Q4 2009

10. Before using e-policies • Broker must complete registration form – See MRO website. • 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 view e-policy • Determine central email address for signed e-policy to be sent to • Consider what you tell your clients about the change • Train your policy technicians in Direct Load or your DRI solution

11. E-policy submission process • Establish at quotation whether e-policy suitable for (re)insured • If (re)insured requires paper policy could this be printed version of e-policy or do they require embossed paper policy? • Ensure MRC makes it clear policy required, and policy attached to MRC when placed. • Submit word/PDF copy of wording via A&S as part of work package • Ensure a Policy Control Form is completed and present in work package • If (re)insured has requested embossed policy then specify a paper copy required on Policy Control Form

12. E-policy signing process at Xchanging • Xchanging sign policy electronically and apply electronic seal to the document, similar to embossed seal found on paper policies. • Xchanging load copy of signed policy to UMR folder of IMR with document type of “Signed Policy”. • Xchanging email signed document to brokers central email address provided at registration. • Brokers may send e-policy to client electronically, or if client preference print and sent as paper

13. E-policy exemption process • Brokers have identified minority of contracts where e-policy submission not possible. Examples include: • (re)insured requires wet signature due to local requirements or preference. • (re)insured wants London security to be documented in consistent manner as other insurers on risk • Legacy or complex risk • E-policies exemption form requires broker to explain why paper submission required • Information gathered from exemption form will allow service to be enhanced to bring more policies in-scope • Paper policy submissions without e-policy exemption form will be rejected prior to policy checks being completed

14. Baronsmead Partners Bennett Gould & Partners Camberford Law CKRe Corrie Bauckham Batts Crescent Global UK Croton Stokes Wilson Culver Ltd Decus Insurance Endeavour Insurance European Insurance & Reinsurance Brokers OAMPS Special Risks FP Marine Risks Gresham Insurance Brokers Griffiths & Armour Global Risks Hayward Aviation Howard Global Insurance Services International Risk Solutions KM Dastur & Co Paragon International Insurance brokers Parker Norfolk & Partners • Smith Bilborough & Co • Special Contingency Risks • Special Risks Insurance Brokers • SSL International Brokers • Tasker & Partners • Texel Finance • The Broker Network • The Underwriting Exchange • Towergate London Market • WT Butler & Co • Woodgate & Partners LIIBA members NOT registered as at 13th February 2009

15. Further Information The following documentation is available from Market Reform website: • Xchanging E-policies User Guide. • List of brokers who have signed up for E-Policies • 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@LIIBA.co.uk - 0207 280 0152 or Michael.Langston@Xchanging.com - 01634 887 662

16. Joe Plumeri: “This is a further example of the London market improving its processes to deliver benefit to our clients. E-Policies help us to meet our obligations to provide our clients with evidence of the business we have placed for them; and they help us do that in an efficient manner consistent with a twenty first century market place. Lower cost to process, better service delivered. That is what market reform is all about.”