ACORD in the London Insurance Market

1. ACORD in the London Insurance Market March 2007

2. Agenda • About ACORD • Current Activities • Future Plans

3. Who is ACORD? • Independent and Objective Trade Association • Serving the Insurance Industry since 1970 • Facilitating Industry-Driven Standards for Brokers, Carriers, Solution Providers, Market Associations • Not For-Profit Corporation • Anti-Trust protected forum for developing Standards and promoting implementation • Develops, Manages, and Promotes Standards

4. Why Standards • Sharing data • Simplified processes • Straight through processing • Reduce the cost of processing • Connect to trading partners • Enhances the quality of data • For Global trading/processing

5. The Business Wish List • Competitive quotes • Improve claims ratio • Increase access to Markets • Process efficiency • Open all hours • Satisfy Regulators more easily • Clarity of Contract • Understanding exposure • Globalisation • Automation • Intra Office communication • Legacy Management • Manage claims exposure and R/I recoveries • Efficient reporting

6. The Need for Standards • Competitive quotes • Improve claims ratio • Increase access to Markets • Process efficiency • Open all hours • Satisfy Regulators more easily • Clarity of Contract • Understanding exposure • Globalisation • Automation • Intra Office communication • Legacy Management • Manage claims exposure and R/I recoveries • Efficient reporting Electronic movement of information and the Need for Standards

8. The ACORD Vision • The Global Insurance/Reinsurance Industry has one, common set of Business Data Definitions • All solutions implemented are built upon these Standards

9. ACORD Governance • 3 Standard Domains • Non Life • Reinsurance Large Commercial • Property Casualty &Surety • Life • Life and Annuity • ACORD Board • Advisory Boards • ACORD Standards Committee • Domain Steering Committee • Business • Technical • Implementation • ACORD staff • Working groups

10. ACORD Governance

11. RLC Messages – the standards to be used by London • Placing • Slip and contract details for quotation, firm order and endorsement processing • Technical Account • Technical accounting movements (eg LPAN) • Financial Account • Listing of settlements • Claim Movement • Claim and loss reserve details • Bordereau • To list premium and claim or risk information • Technical standards • Includes DRI

12. ACORD Implementations • The ACORD messages are usually large with lots of functionality • Organisations tend to implement in ‘bite size’ chunks • Start with skinny messages • Enhance functionality gradually • Roadmaps are needed to explain implementation phases and plans • Implementation guides are developed that reflect the agreed phased implementations • Benefits • Implementations are tighter, simpler, more manageable and cost effective

13. London Projects – the ACORD involvement • Placing • Implement the ACORD Slip (GPD) • Implement ACORD Placing message • A&S • Implement A&S Repository • Implement ACORD messages for Bureau and non Bureau accounting • Claims • Implement Electronic Claims File

14. ACORD London Market Plans

15. Placing Quote Place Endorse

16. Placing Quote Place Endorse Implemented Implemented MR slip G6 Implemented Complete pilot end Q2 2007 G6 phase 1 MRSIG Implementation from June 2007 G6 phase 2 (Two-way messaging)

17. Placing Quote Place Endorse Implemented Implemented MR slip G6 Implemented Complete pilot end Q2 2007 G6 phase 1 MRSIG Implementation from June 2007 G6 phase 2 (Two-way messaging) Completed - awaits MRG decision on rollout GPD Update to include MRSIG Q3 2007 PLACING IMPLEMENTATION GUIDE Publish June 2007 (G6 incorporated) PLACING IMPLEMENTATION GUIDE DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE Re-publish June 2007 with London rules incorporated TESTING AND CERTIFICATION FACILITY • Already implemented with London DRI rules included • Support for placing targeted for June 2007

18. Global Placing Document (GPD) • The ACORD Slip • Implementation Guide with examples • Originally based on LMP (MR) Slip • Extended to include additional content for specific areas of business • GPD is mapped to the ACORD Placing message

19. Placing Implementation Guide (PIG) • An implementation guide for the ACORD Placing message – Processes and data required at each stage • Build: client – agent negotiations about the structure of a proposed placement. ACORD messages allow agents to propose terms for their client to review and approve or decline. • Quotation: where a client (or their agent) approaches one or more carriers for a quotation. ACORD messages allow clients, carrier and agents to request and provide quotations. • Client Approval: where a client has engaged an agent and wishes to approve their work before any contracts are placed. ACORD messages allow clients to approve the work of their agents before the placement is continued. • Order: the process of binding and formally accepting a contract. ACORD messages allow for clients and carriers to enter into a binding contract (either directly or via their agents), as well as indicate declinatures, supply conditions and manage contracts post-bind. • Endorsement: the amending of a contract after it has been bound, ACORD messages allow clients, carrier and agents to propose, agree and notify endorsements.

20. Placing Quote Place Endorse Implemented Implemented MR slip G6 Implemented Complete pilot end Q2 2007 G6 phase 1 MRSIG Implementation from June 2007 G6 phase 2 (Two-way messaging) Completed - awaits MRG decision on rollout GPD Update to include MRSIG Q3 2007 PLACING IMPLEMENTATION GUIDE Publish June 2007 (G6 incorporated) PLACING IMPLEMENTATION GUIDE DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE Re-publish June 2007 with London rules incorporated TESTING AND CERTIFICATION FACILITY • Already implemented with London DRI rules included • Support for placing targeted for June 2007

21. ACORD Testing Certification Facility • Software that confirms messages are ACORD compliant • Test own systems as though interacting with real business partner • Performs data and business validation • Ensures new business partners are ready before becoming engaged • ACORD have an effective and efficient method of certifying messages

22. Accounting and settlement Close Account Settle

23. Accounting and settlement Close Account Settle Guide for ongoing reference A&S Strategic Implemented A&S phase 1 Signing messages; BSM, CSM, USM Implemented Generally available from October 2007 ELPAN2 Implemented internationally, not yet in London Peer to Peer accounting

24. Accounting and settlement Close Account Settle Guide for ongoing reference A&S Strategic Implemented A&S phase 1 Signing messages; BSM, CSM, USM Implemented Generally available from October 2007 ELPAN2 Implemented internationally, not yet in London Peer to Peer accounting Publish June 2007 with ELPAN2 and EBOT requirements incorporated ACCOUNTING & CLAIMS IMPLEMENTATION GUIDE ELPAN2: Bureau EBOT: Non Bureau DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE Re-publish June 2007 with London rules incorporated TESTING AND CERTIFICATION FACILITY • Already implemented with London DRI rules included • Support for Accounting targeted for August 2007

25. Claims Advice Payment Settle

26. Claims Advice Payment Settle Implemented Implemented CLASS (Company market) Signing messages; BSM, CSM, USM Rolling out CLASS (Lloyd’s) Rolling out ECF Implemented internationally Peer to Peer claims

27. Claims Advice Payment Settle Implemented Implemented CLASS (Company market) Signing messages; BSM, CSM, USM Rolling out CLASS (Lloyd’s) Rolling out ECF Implemented internationally Peer to Peer claims ACCOUNTING & CLAIMS IMPLEMENTATION GUIDE EBOT: Non Bureau Publication with EBOT requirements targeted June 2007 DOCUMENT REPOSITORY INTERFACE IMPLEMENTATION GUIDE Re-publish June 2007 with London rules incorporated TESTING AND CERTIFICATION FACILITY Already implemented with London DRI rules included

29. ACORD – Key dates for London in 2007 • TCF • DRI messages Complete • Placing messages June 2007 • Accounting messages August 2007 • Placing Implementation Guide • Complete for current work load June 2007 • Updated for London Endorsements Q3 2007 • Accounting Implementation Guide • EBOT June 2007 • ELPAN2 June 2007 • DRI • Guide enhanced June 2007 • Forums • IT Club Ongoing • Service Providers Forum Ongoing

30. ACORD – other areas • Roadmaps • London Roadmap - this has been developed into the MRG Roadmap • ACORD is developing Roadmaps for North America and Europe • ACORD TV • Communication and Education service • Video on demand providing insurance information via ACORD website • Working on Exposure reporting

31. ACORD Membership • Over 500 Worldwide members • London • Lloyd’s on behalf of all Managing Agents • Brokers – the major organisations • Companies – many of the IUA membership • Service providers • Market Associations (LMBC, LMA and IUA)

32. Purpose of Standards • Reduce the cost of doing business • Reduction in time and costs • Connect trading partners efficiently • Sharing data with business partners • Simplified and common business processes • Straight through processing • Enhance data quality and transparency • Improve customer service • Provide access to markets and partners globally. • Speed to market with products and services • Sharing data within own organisation • Electronic movement of information

33. Londonoffice: LUC - Suite 1/3 3 Minster Court Mincing Lane London EC3R 7DD UK +44 207 617 6400 World Headquarters: Two Blue Hill Plaza 3rd Floor Pearl River, NY 10965 USA +1 845 620 1700 SLIDE 33