ACORD in the London Insurance Market March 2007

Agenda About ACORD Current Activities Future Plans

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

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

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

Electronic movement of information 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

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

ACORD Governance 3 Standard Domains ACORD Board 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

ACORD Governance ACORD Standard setting is governed by a document that is called our Standard Operating Procedure. This communicates how we must be structured and what we do in relation to standards setting. It defines that there is to be leadership from our members on a series of committees. These committees allow the members to control what we do in the area of standards setting. There are five key groups: The Board of Directors which is mostly senior level employees of our key members. The three steering committees for each of the standards which is mostly business level managers in our members and then the ACORD Standards Committee which is made up of representatives of the other committees.

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

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

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

ACORD London Market Plans

Placing Quote Place Endorse

G6 phase 2 (Two-way messaging) 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)

Placing Quote Place Endorse Implemented Implemented MR slip G6 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

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

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.

Placing Quote Place Endorse Implemented Implemented MR slip G6 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

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

Accounting and settlement Close Account Settle

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

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

Claims Advice Payment Settle

CLASS (Company market) 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

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

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

ACORD – other areas Roadmaps ACORD TV Working on Exposure reporting 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

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)

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

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