The Dutch Insurance Exchange Introducing VNAB & e-ABS Michel Schaft

Dutch Insurance Exchange, active since 1598 Rotterdam Insurance Exchange: 1598 Amsterdam Insurance Exchange: 1611 Na de verovering Antwerpen in 1585 en daaro volgende blokkade van de Schelde: uittocht van kooplieden naar de Noordelijke Nederlanden. Als gevolg daarvan ontstond als eerste de Rotterdamse Assurantie Beurs (1598), gevolgd door de Amsterdamse (1611) In the past we inspired you and you did well with it, today we’re here to do the same

Introducing VNAB VNAB (Dutch Insurance Exchange Association) is the Dutch organization of (Register) Brokers and Insurers (including authorized agents) active on the Exchange 4 important ‘roles’: Facilitating the marketplace (e-ABS) Knowledge and knowledge sharing Advocacy Marketing and communication The VNAB members are active in the insurance business of industrial and commercial risks, which are insured according to the usual Exchange methods

Local and international insurers How our local market works… Local and international insurers Dutch Insurance Exchange Broker Policy Issuance Claims Handling Clearing Market numbers Insured Risk

1,300,000,000 EUR per year Premium volume through e-ABS: Market numbers *) a policy is underwritten by - on average - 3,7 insurers.

30,000 claims per year Market numbers

37,500 bookings per month Market numbers

Why change to a digital marketplace? Margins erode so focus on added value services & efficiency Technological advancements change of the businessmodels in the market Transparency is key supervisors claim a more active role Supervisors (DNB, AFM) claim a more active role in the field where interventions in the private sector count as as starting point. a proactive attitude is needed to ensure that the (large) business market will not be curtailed in advance. Techological advancements change the rules of the revenue in the market Development in the private market the private sector will develop as a commodity market with low margins and a shrinking market of "complex" insurance products for consumers with an advisory rolefor intermediaries. market players will focus on the (large) business market with more added value (expertise) and with better margins: the (large) business broker and insurer as risk specialists. Social and political influences Dutch economy needs parties and industries to add to the strength of the economical climate. This is the time for the Insurance Exchange market to build on and strengthen its prominent position!

VNAB presents… Changed needs: It is essential for stakeholders have a platform to interconnect efficiently and with low costs

VNAB presents e-ABS International large brokers, insurers and loss adjustment firms benefit from a well developed and equipped insurance exchange market. The Dutch Insurance Exchange Association (VNAB) aims at providing its members with an infra-structure / platform for direct communication and on-line trading for all co-insurance purposes. e-ABS is an integrated system that facilitates the co-insurance process between Brokers, Insurers and Loss Adjusters on Placement, Claims and financial processing (Clearing).

Our journey from a physical to a digital market place Starting gradual implementation e-ABS core team (appointed experts and external IT consultants) addresses all tenders A request for information was formulated Thorough discussions with VNAB members about functionality Content related and financial assessments results in advice to select the supplier Three suppliers where invited to submit a proposal Functional design made final VNAB finalized their functional design for the new e-ABS after thorough discussion with its members during extensive sessions. Based on this functional design, a request for information was formulated for the construction and hosting of the system. Three suppliers where eventually invited to submit a proposal. All three tenders where addressed by the Core Team of e-ABS which was set up fir this specific purpose. This team comprised appointed experts of VNAB members and external IT consultants. Based on content related and financial assesments, the Core Team advised the Steering Committee e-ABS on the selection of one supplier: Logica Decision to start a digital marketplace

Gradual implementation towards successful usage of e-ABS Today: +/- 175,000 registered claims since 2008 +/- 950,000 booking lines since 2011 +/- 40 brokers, +/- 40 insurers and +/- 50 loss adjusters use e-ABS In 2012: +/- 52,000 active policy files Fully operational Clearing module operational Gradual implementation Placement module operational Gradually implemented since 2008 and fully operational since 2011 It’s an integrated system with available webservices 500 claims per week EUR 1,200 Mio premium volume Production numbers: - active placements in 2012 =± 52,000 - registered claims since 2008 =± 170,000 - processed booking lines since 2011=± 900,000 ± 40 brokers, ± 40 insurers and ±50 loss adjusters use e-ABS Implementation: 03/ 2008 module Claims operational 05/2010 module Placement operational 03/2011 module Clearing operational Users: Claims module operational 2008 2009 2010 2011 2012 2013 2014

e-ABS: succesfully used for quite some time Gradually implemented since 2008 and fully operational since 2011 It’s an integrated system with available webservices 500 claims per week EUR 1,200 Mio premium volume Production numbers: - active placements in 2012 =± 52,000 - registered claims since 2008 =± 170,000 - processed booking lines since 2011=± 900,000 ± 40 brokers, ± 40 insurers and ±50 loss adjusters use e-ABS Implementation: 03/ 2008 module Claims operational 05/2010 module Placement operational 03/2011 module Clearing operational Users: In total +130 companies use e-ABS In order to use e-ABS, companies have to be members of the VNAB Membership starts at +/- EUR 3,000 (broker) and EUR 5,900 (insurer) License fee e-ABS depends on role (broker/insurer): +/- EUR 2,200,- / 2,500,- per user

So..what does e-ABS do?

So... what does e-ABS do? Webbased system: Accessible via webbrowser Webservices available for connections with backoffice systems of insurers and brokers System supports full placement, claims and clearing process

e-ABS works with three modules Placement: all processes needed to get cover and create & maintain a policy Clearing Placement Clearing: Booking of premium & claim amounts Create file Quotation procedure Complete cover Record agreements Policy version Policy versions of this process are the basis for claims Claims Notification of claims Loss adjusting Claim settlement Explain each module shortly. Placement : contains all functionalities to negotiate, place bids, and record and approve agreements. Claims : Clearing : key functionality of Clearing is processing of entries. Claims: all processes needed to issue and settle claims

Introducing the players DEMO Introducing the players Followers Explain each module shortly. Placement : contains all functionalities to negotiate, place bids, and record and approve agreements. Claims : Clearing : key functionality of Clearing is processing of entries. Loss adjuster Broker Client Lead insurer

How do participants see the benefits? “It is a system where parties can share information in a very efficient way and that allows insurers to comply more easily to the demands of their in- and external control systems” The biggest advantage of e-ABS is shorter throughput time. “It saves weeks on average per claims file. Furthermore it is my experience that 70% of the claims are finalized within 2 weeks." Gielijn Arends, Head of Claims Marine & Reinsurance Amlin Europe Herman van de Wetering, Claims specialist Aon Corporate Solutions Going back is no option for Peter. “For that this unique system is offering too much advantages: a policy file accessible on 1 location for everyone and the efficiency benefits of the financial processing of Clearing” “Especially as to follow insurer it is good that thanks to e-ABS you are quickly aware of the current status of the claim, and that you can see all the relevant correspondence. You can directly adjust the claim policy accordingly ” Peter Bastiaans, Head acceptance Cargo Transport insurance HDI Gerling Erik Boers, Team Leader Claims Netherlands Zurich Global Corporate Benelux “As Lloyd’s coverholder I can show my auditors and other business partners in a good and relatively easy way how transparent the way of working is for placement, claims and financial clearing. Also it shows how we can track progress, even if we are not the leading party.” “In the past, the survey report needed to be sent 8-fold to the broker, but now all the parties involved have insight in progress directly” It’s efficient data entry is only needed once time saving on communication, double entry prevention,scanning / copying / archiving, retrieving reduces throughput time by means of electronic processin offers support on the daily workprocesses Less time spend on data entry = more time for personal contact Time is money which means there are significant cost-advantages Duco Teijema, Branch & Marine manager Netherlands Torus Insurance Hans de Hoog, general manager Lenkeek, Laarman & De Hosson “..other good points are the efficiency, the archive function, security and the fact that the system is user friendly, not connected to a physical workspace and that it supports chains integration” Jack van Nielen, operations manager AON risk solutions

e-ABS is efficient It’s efficient data entry is only needed once “It is a system where parties can share information in a very efficient way and that allows insurers to comply more easily to the demands of their in- and external control systems” The biggest advantage of e-ABS is shorter throughput time. “It saves weeks on average per claims file. Furthermore it is my experience that 70% of the claims are finalized within 2 weeks." Gielijn Arends, Head of Claims Marine & Reinsurance Amlin Europe Herman van de Wetering, Claims specialist Aon Corporate Solutions Going back is no option for Peter. “For that this unique system is offering too much advantages: a policy file accessible on 1 location for everyone and the efficiency benefits of the financial processing of Clearing” “Especially as to follow insurer it is good that thanks to e-ABS you are quickly aware of the current status of the claim, and that you can see all the relevant correspondence. You can directly adjust the claim policy accordingly ” Peter Bastiaans, Head acceptance Cargo Transport insurance HDI Gerling Erik Boers, Team Leader Claims Netherlands Zurich Global Corporate Benelux “As Lloyd’s coverholder I can show my auditors and other business partners in a good and relatively easy way how transparent the way of working is for placement, claims and financial clearing. Also it shows how we can track progress, even if we are not the leading party.” “In the past, the survey report needed to be sent 8-fold to the broker, but now all the parties involved have insight in progress directly” It’s efficient data entry is only needed once time saving on communication, double entry prevention,scanning / copying / archiving, retrieving reduces throughput time by means of electronic processin offers support on the daily workprocesses Less time spend on data entry = more time for personal contact Time is money which means there are significant cost-advantages Duco Teijema, Branch & Marine manager Netherlands Torus Insurance Hans de Hoog, general manager Lenkeek, Laarman & De Hosson “..other good points are the efficiency, the archive function, security and the fact that the system is user friendly, not connected to a physical workspace and that it supports chains integration” Jack van Nielen, operations manager AON risk solutions

e-ABS is transparent It’s efficient data entry is only needed once “It is a system where parties can share information in a very efficient way and that allows insurers to comply more easily to the demands of their in- and external control systems” The biggest advantage of e-ABS is shorter throughput time. “It saves weeks on average per claims file. Furthermore it is my experience that 70% of the claims are finalized within 2 weeks." Gielijn Arends, Head of Claims Marine & Reinsurance Amlin Europe Herman van de Wetering, Claims specialist Aon Corporate Solutions Going back is no option for Peter. “For that this unique system is offering too much advantages: a policy file accessible on 1 location for everyone and the efficiency benefits of the financial processing of Clearing” “Especially as to follow insurer it is good that thanks to e-ABS you are quickly aware of the current status of the claim, and that you can see all the relevant correspondence. You can directly adjust the claim policy accordingly ” Peter Bastiaans, Head acceptance Cargo Transport insurance HDI Gerling Erik Boers, Team Leader Claims Netherlands Zurich Global Corporate Benelux “As Lloyd’s coverholder I can show my auditors and other business partners in a good and relatively easy way how transparent the way of working is for placement, claims and financial clearing. Also it shows how we can track progress, even if we are not the leading party.” “In the past, the survey report needed to be sent 8-fold to the broker, but now all the parties involved have insight in progress directly” It’s efficient data entry is only needed once time saving on communication, double entry prevention,scanning / copying / archiving, retrieving reduces throughput time by means of electronic processin offers support on the daily workprocesses Less time spend on data entry = more time for personal contact Time is money which means there are significant cost-advantages Duco Teijema, Branch & Marine manager Netherlands Torus Insurance Hans de Hoog, general manager Lenkeek, Laarman & De Hosson “..other good points are the efficiency, the archive function, security and the fact that the system is user friendly, not connected to a physical workspace and that it supports chains integration” Jack van Nielen, operations manager AON risk solutions

e-ABS is easy to use It’s efficient data entry is only needed once “It is a system where parties can share information in a very efficient way and that allows insurers to comply more easily to the demands of their in- and external control systems” The biggest advantage of e-ABS is shorter throughput time. “It saves weeks on average per claims file. Furthermore it is my experience that 70% of the claims are finalized within 2 weeks." Gielijn Arends, Head of Claims Marine & Reinsurance Amlin Europe Herman van de Wetering, Claims specialist Aon Corporate Solutions Going back is no option for Peter. “For that this unique system is offering too much advantages: a policy file accessible on 1 location for everyone and the efficiency benefits of the financial processing of Clearing” “Especially as to follow insurer it is good that thanks to e-ABS you are quickly aware of the current status of the claim, and that you can see all the relevant correspondence. You can directly adjust the claim policy accordingly ” Peter Bastiaans, Head acceptance Cargo Transport insurance HDI Gerling Erik Boers, Team Leader Claims Netherlands Zurich Global Corporate Benelux “As Lloyd’s coverholder I can show my auditors and other business partners in a good and relatively easy way how transparent the way of working is for placement, claims and financial clearing. Also it shows how we can track progress, even if we are not the leading party.” “In the past, the survey report needed to be sent 8-fold to the broker, but now all the parties involved have insight in progress directly” It’s efficient data entry is only needed once time saving on communication, double entry prevention,scanning / copying / archiving, retrieving reduces throughput time by means of electronic processin offers support on the daily workprocesses Less time spend on data entry = more time for personal contact Time is money which means there are significant cost-advantages Duco Teijema, Branch & Marine manager Netherlands Torus Insurance Hans de Hoog, general manager Lenkeek, Laarman & De Hosson “..other good points are the efficiency, the archive function, security and the fact that the system is user friendly, not connected to a physical workspace and that it supports chains integration” Jack van Nielen, operations manager AON risk solutions

Future steps Growth in volume Increase usage Increase added value Functionality Increase efficiency of using the platform Data sharing Value chain integration

e-ABS has three integrated modules: placement, claims and clearing. e-ABS key take aways The VNAB is the Dutch organization for national and international brokers and insurance companies active on the Dutch Insurance Exchange. e-ABS is an integrated system that facilitates the co-insurance process between brokers, insurers and loss adjusters on placement, claims and financial clearing. e-ABS is used by 130 parties handling EUR 1.3 BIO premium volume per year, 30,000 claims per year, 37,500 bookings per month e-ABS has three integrated modules: placement, claims and clearing. The value of e-ABS: Saves a lot of time and money Offers a better overview and more transparency Increases quality Is user friendly e-ABS users need to be member of the VNAB Fee structure Want to know more? Please visit us at the information stand or visit www.VNAB.nl/lloydstechday