1. Market Reform in the London Company Community John Hobbs Director of Market Services International Underwriting Association March 2008

2. Contents London Company Characteristics Market Reform Governance in the IUA Current Activities and Status Future Considerations

3. London Company Characteristics Regulation by FSA or Home State Regulator Usually UK subsidiary or branch (rarely parent, rarely stand alone) International / multinational players Individual operating licences Limited mutuality of interest (e.g. no central fund) Limited / no assumption or delegation Significant (varied) business outside the bureau Not all IUA members

4. Company Market Reform Considerations Bottom Line Impact –Increase revenue? –Reduce costs? Group Operational / Proportional Impact –London business only? –Transferable? Bureau Specific?

5. IUA Market Reform Governance IUA Board (12 Member Companies) –Ace, AIG, Allianz, Chubb, Global Aerospace, Markel, Munich Re, Royal & Sun Alliance, Scor, Swiss Re, Tokio Marine Global, XL Re MRG Representatives Swiss Re, Global Aerospace (IUA Chair), IUA CEO LMRB Representatives Global Aerospace (IUA Chair), IUA CEO

6. IUA Market Reform Governance Market Reform Implementation Steering Group (MRISG) (11 Member Companies) –Ace, AIG, Allianz, Aspen Re, Lancashire, Liberty, Markel, QBE, Swiss Re, Transatlantic Re, XL Re EPSG Representatives Aspen Re, Liberty, XL Re (IUA in attendance) ESG Representatives Ace, AIG, IUA

7. IUA Market Reform Governance Market Reform Contact Network (MRCN) (26 Member Companies) –Ace, AIG, Allianz, Arch, Aspen Re, Axa, Chubb, Endurance, Faraday, Generali, Great Lakes, Hannover Re, Houston Casualty, Liberty, Munich Re, Markel, New India, QBE, Royal & Sun Alliance, Scor, Sirius, Swiss Re, Trans Re, Tokio Marine, XL Re, Zurich.

8. IUA Market Reform Governance ECF Implementation Group (ECFIG) –ECF User Group A & S Group Class Application User Group (CAUG) Policy Services User Group (PSUG)

9. Current Status – A & S De-Linking –76% January 08 (Peak) –68% February 08 PPWP Recommendations –De-Linking as the default –Re-working the deferred scheme

10. Current Status – A & S e-Accounting –Sponsored by LMBC, led by Guy Carpenter –Promote e-Accounting using ACORD standards –For non-bureau e-closings for premiums, treaty accounts and claims with e-settlement for all transaction types –For bureau E-LPAN for premiums –IUA about to engage

11. Current status - ECF Active –Arch, Aspen Re, Axis, Brit, Catlin, Ecclesiastical, Endurance, Houston Casualty, Lancashire, Liberty, Mapfre, Markel, New India, QBE, Scor, Transatlantic Re Limited activity (awaiting IMR contract) –Everest Re, Munich Re, Swiss Re, XL Re, Zurich

12. Current Status - ECF Transition to Active –AIG, Allianz, Faraday, Royal & Sun Alliance Start Up –Axa, Sirius, Tokio Marine Europe Status Updates: www.marketreform.co.uk

13. Current Status – Electronic Placing Engaged with EPSG –3 company market representatives –Support LMA facilitative activity Implementation and Investigation –Engaged with Implementation Group (EPIG) –1 company live –7 piloting / developing

14. Current Status – MRCE / eMRCE Engaged with Endorsements Steering Group (ESG) –3 company market representatives –Low pilot exposure but support concept –Active role in MRCE / eMRCE development –Expect high level of implementation engagement

15. Future Reform Considerations Claims –A London Market Strategy? London Market Claims Strategy Group (LMCSG) Lloyds Strategic Claims Review One Claims Platform? The Future of Company CLASS Where next with IMR?

16. Future Reform Considerations Electronic Placing –How do we improve traction? Model Office? Promotion via ACORD? More publications? Will eMRCE provide the spark?

17. Market Reform in the London Company Community John Hobbs Director of Market Services International Underwriting Association March 2008