1. Market Reform: H1 Checkpoint 27 July 2006 Andy Brookes

2. Market Reform Build user-friendly front-end for contract certainty checks (Q1) Avoid regulatory intervention MRG Objectives 2006 + So far… Contract Certainty Market achievement of monthly volume of certain contracts (30% by Q4 05, 60% by Q2, 85% by Q4) Market slip compliance rated 99% (Q1);85% of slips fully compliant (Q4) 98% achieved Resolve signed lines, late orders and other outstanding contract certainty issues (Q2) Clear plan for continued improvement of CC in 2007+ (Q3) Market feasibility for next stage of development of QA tools (Q4) 84% achieved in April New pilot version out

3. Market Reform publish accounting checks (Q1) MRG Objectives 2006 + Reordered and combined, planned completion Aug Data delays, expected Q3 (?) Accounting & Settlement Establish measurement regime (Q1); For ACORD international standard A&S processes: –Agree and document outline processes (Q1) –Publish detailed technical and business information (Q2) –Secure public commitment to implementation by brokers and carriers; with timetable for migration from old processes (Q4) Implement A&S repository (Q4) Partially achieved MAT started

4. Market Reform Publish implementation manual for electronic transfer of documents using (ACORD DRI) international standards (Q1) Publish processes and procedures for electronic claims – Lloyds first (Q1); (At least 4) brokers and (9) Lloyds Managing Agents processing 100% of new claims electronically, supported by XCS (Q4) Deliver Lloyd's electronic infrastructure into market testing (Q2) MRG Objectives 2006 + Replanned to Q4 to align with infrastructure strategy work Claims InfrastructureIUA next (Q4) Plan for common claims procedure in London (Q1) Complete IUA repository pilot and agree next steps (Q2) Set strategy for claims infrastructure beyond ECF (Q4) Started June, expected to end Sep 5 brokers, 15 managing agents, and rising

5. Market Reform participation targets (Q4) framework for claims training (Q2); measured progress against code (Q4) Training: approved courses for contract certainty (Q1); MRG Objectives 2006 + Other Publish legacy Code of Practice (Q1); Measure use of new infrastructure and business benefits (on- going)