From reform to managing change Dr Richard Ward, Chief Executive, Lloyd’s

Lloyd’s today… From reform to managing change September 2010

So we need to keep evolving… Ruschlikon Initiative Group of large European reinsurers, (Swiss Re, Munich Re, Hannover Re et al) live in the UK, Europe, US and Bermuda. Rule book and implementation standard Netherlands electronic Insurance Exchange System (eABS) Owned & governed by the Netherlands Insurance Exchange Association (VNBA) Covers Placing, A&S and Claims - only Claims is currently live Will be mandatory for all members of the VNAB New York Insurance Exchange (NYIE) Move to resurrect the 1980’s NYIE announced in January. Technology will play a key part. Council of Insurance Agents & Brokers (CIAB) Partnering with LexisNexis to create an insurance exchange to improve the efficiency and transparency of the independent agent-based distribution system in US. Supported by a broker-controlled and operated entity called The Insurance Exchange Trust (IET). Qatarlyst Brings together international insurers/reinsurers and brokers to conduct insurance trading activities An electronic trading service to facilitate workflow, deliver documentation and provide effective management information - ultimately enable straight though processing capabilities From reform to managing change September 2010

Embracing technology… From reform to managing change September 2010

We’ve already seen dramatic change at Lloyd’s… From reform to managing change September 2010

Considerable progress so far We are on a journey to greater efficiency But there is still work to be done From reform to managing change September 2010

The Exchange is the next step on our journey Working alongside Lloyd’s traditional face-to-face interaction between brokers and underwriters From reform to managing change September 2010

One connection, multiple uses From reform to managing change September 2010

But we need you to come along for the ride… From reform to managing change September 2010

The benefits are many Improve customer service Retain and attract business Lower operational costs Reduce operational risk Improve capital efficiency Create greater transparency From reform to managing change September 2010

Where we are at: connections Managing agent, Broker and Company connections Managing agents connected as a % of total capacity Brokers connected as a % of total premium income IUA companies connected as a % of IUA members From reform to managing change September 2010

Where we are at: message volumes Total messages month by month and total cumulative messages From reform to managing change September 2010

Where we’re going… From reform to managing change September 2010

But most of all, we want to go from being known for this… From reform to managing change September 2010

To being known for this… From reform to managing change September 2010