Direct Reporting Status Update and Planning Agenda at Lloyd’s Control Framework Breakfast Group

1. Control Framework Breakfast Groupagenda • 9:00 Arrival, Breakfast & networking • 9:20 Welcome & Phase I Update • 9:30 Direct reporting project update – Sharmi Bakrania & kevin Blake • 9:45 Meet the phase II CF team • Phase II planning activities at Lloyd’s – Jaana Rouvari • Audit scope – Lindsey Davies • Broker engagement – John Hibbert • Next steps - Jaana Rouvari • 10:15 Q & A • 10:30 Close

2. Direct reportingCurrent STATUS March, 2013

3. Direct Reporting What is it ? • A process that enables Managing Agents to report regulatory & tax information directly to Lloyd’s for non-subscription Service Company business • Data is at a transactional level as opposed to reporting information being derived from the bureau accounting process • Breaks the link between accounting and reporting What benefits could it provide managing agents? • Reduces direct costs of transactional processing through a service provider • Meets the desire for choice in operating model • Releases time and resource currently producing LPANs

4. Historic position - Prototype pilot closed • Lloyd’s developed a pilot reporting engine for service company tax & regulatory information • Outputs internal data files for market reporting and claims monitoring purposes • Limited territories - Canada, Australia, EEA and US • 3 managing agents – Catlin via XML, Chaucer & XL via CSV file formats • Time was right to update the technology, increase the scope & the users

5. Current position • Replacement of the prototype - scalable for volume increase • Pragmatic and practical solution- CMR collection combined with bespoke core system with a target delivery date of later in 2013 • Increased scope to world-wide • Some Managing agents have been visited and given an overview of the project along with draft data requirements.

6. Industrial strength, future-proofed solution Key elements to the project • 100% business to Lloyd’s – non-subscription Service Company business • Include all Territories • ACORD standard XML message • Flexible submissions timeframes • Offer reporting service to all managing agents via Core Market Return route

7. Core MARKET RETURN

8. Lloyd’s Direct Reporting

10. KEY considerations • The Control Framework will need to be signed-off (applies to business reported directly or through Xchanging) prior to submission • Possible need to amend current systems to add new data fields • Consider/confirm market maturity in the use of ACORD XML messaging • Support required for your business case • Implementation/cut-over strategy

11. Next Steps… • Lloyd’s to confirm the detailed data requirements • Lloyd’s to assist Managing Agents’ benefits cases • Lloyd’s to hold individual meeting with each participant • Lloyd’s to assist Managing Agents’ define an implementation plan for Direct Reporting if applicable

12. IMPLEMENTATION PLAN

13. Questions…?

14. Control Framework Control framework Phase II • Project team introductions • Phase II planning activities at Lloyd’s • Audit scope • Broker engagement • Next steps

15. Control Framework Phase II Communications Phase II Lloyd’s Control Framework 54 Managing Agents Managing Agent Auditor Coverholders Broker/ Coverholder

16. Control Framework Phase II planning Consulting Brokers Managing Agent tool kit Educating Auditors

17. Control Framework Tools for the job

18. Control Framework Audit Scope

19. Control Framework Broker engagement • Driven through Managing Agents • How can managing agents work together to deliver a message to the broker community? • How can Lloyd’s help Managing Agents with their communications with Brokers? The exercise! 10 minutes for brainstorming within your tables. Share ideas with the group.

20. Control Framework Next steps • Creating a road map • Managing Agent working group – volunteers • Quarterly road map with check points – April CF Breakfast Group • Project tool kit end of Q2 • Face to face meetings Q2/Q3 – Contacts for Phase II

21. Control Framework Q & A session