Tactical and Strategic Plan for ECF August 2008 Presentation to Market Reform Forum Gary Bass Chairman, ECF User Group

Where are we now? The market has made significant improvements in the handling of claims with the introduction of the Electronic Claim File in Nov 06 At the end of Q2 2008, ECF usage in the Lloyd’s community is over 90% for in-scope claims and the system is becoming ‘business as usual’ within the claims community Over 98% of brokers by volume are live All active Managing Agents are live Company market – 26 firms are live and trading on ECF Cross market groups working on delivering improvements We must build on the momentum and realise the benefits

What is ‘in-scope’? A significant number of all new claims can be handled via ECF. Certain new claims are not currently supported by all versions of ECF, e.g.  Scheme Canada  Proportional Treaties Other types of claims cannot be handled currently via ECF, e.g.  Certain multiple OSND claims, including: –Co-Lead Binding Authorities –Claims arising from vertically-placed risks  Existing paper claims files (legacy)  Third Party Access

Where are we going? Tactical Priorities 1.System Performance 2.Usability/Functionality 3.Scope Benefits  Reduced end-to-end claims agreement and settlement time  Concurrent access for all carriers  Transparency of claims process  Improved claims management Strategic  Reduce/remove “Londonisms”  Enhanced scalability/flexibility  Leverage technology developments  To be developed by the relevant market groups (LMRB/MRG/LMCSG) in conjunctions with LMA Claims Committee/Lloyd’s  Timescales and deliverables tba…. Short Term Development Long Term Vision

1. System performance IssueActionTarget Response times and system downtime LMRB and Xchanging reviewing system performance - Monthly Updates to LMRB and fortnightly to ECFUG - ECF Best Practice Group to instigate review to understand status within firms -IMR Contract terms Ongoing – Oct 2008 Business Continuity Plans and Catastrophe testing A&S and ECF User Group and Xchanging finalising BCP plans should system fail Disaster Recovery plans for appropriate system recovery are being lead by the LMRB September 2008 Infrastructure upgrades to meet longer term requirements A ‘Hardware Group’ appointed by LMRB is reviewing. This group reverted with recommendations in May The actual upgrades will take place by phased implementation from Q onwards (in accordance with the new IMR contract) May 2008 October 2008 Appropriate resilience and performance of the system are essential to realising the benefits of ECF Tactical Priorities

2. Usability (1) IssueActionTarget Workflow capability development Requirements submitted to Xchanging by the ECF User Group Xchanging proposal and solution to improve the workflow functions within ECF (July 2008)- subject to LMRB approval Phased implementation from October 2008 ECF Management Information The LMRB has approved the development of a suite of cross-market reports defined by a sub-group of the ECF User Group Lloyd’s FPD reports to be delivered to Managing Agents: Volumes Aged Incompletes Response Times End to End Durations Query Rates September 2008 May 2008 and then Monthly Ongoing Effective workflow capabilities and appropriate Management Information are key to the usability of ECF Tactical Priorities

2. Usability (2) IssueActionTarget Enhanced User GuidanceLMA and MRO website, SP&P and existing communication methods are being reviewed by Lloyd’s MO&NA in conjunction with the ECF User Group and the Best Practice Group The objective is to provide more user friendly, easier to navigate User Support Output will be communicated via the Associations August 2008 and ongoing CommentsA Requirements document outlining the need to improve the function of the Comments field in ECF has been agreed by the ECF User Group and submitted to Xchanging for review and solution design Phased implementation from November 2008 Standardisation and communication of best practices are key to the usability of ECF Tactical Priorities

3. Scope IssueActionTarget Multiple Original Signing Numbers (the ‘electronic rubber band’) Work-arounds and possible solutions are being identified by the ECF User Group Development from July 2009 Third Party Access – eg, replacement brokers, fee collection agencies A business requirements document has been agreed by the ECF User Group. Functional specification due Q4 2008, subject to LMRB approval Phased implementation from Q1-Q BindersA working party made up of Lloyd’s binder representatives is investigating changes to the process for binder claims on ECF Initial requirements proposal to be delivered by August 08 with further detailed work this year Full requirements definition by December 2008 LegacySystem functionality (an electronic flag on CLASS) Position for legacy claims TBD following the outcome of the pilot work of the MRSG Legacy Group (appointed by MRG and reporting in to ECF User Group), expected Q May 2008 December 2008 There are four workstream groupings that will increase the scope of ECF Tactical Priorities

ECF Tactical Development - Timetable Target ECF release 7a (Legacy indicator functionality)May 2008 Enhance User GuidanceAugust 2008 ECF Hardware upgrade sign-offSeptember 2008 MI reporting suite (except cycle times report)September 2008 ECF release 7b (usability improvements, including comments) November 2008 ECF Legacy claims position reviewedDecember 2008 Review of binder processDecember 2008 ECF release 8 (remaining claims in scope, including multi OSNDs) From July 2009

Governance and funding Change Requests are developed by the Best Practice Group and designated focus groups, agreed by the ECF User Group and passed to Xchanging for indicative costs. The User Group is responsible for approving the business specifications which are passed to the LMRB for final sign- off and funding. Longer term funding methods established and formalised by the Associations before end of Q in the new IMR contract.

ECF Governance chart NB. Governance may change post new IMR contract Market Reform Group London Market Repository Board ECF User Group Process Review GroupBest Practice Group MRSG Legacy GroupMI Group Query Usage Group Disaster Recovery Group Binder GroupACL Group A&S User Group Hardware/Capacity Planning Sub-group

Summary of ECF User Group Activity 18 month business plan to be produced – Oct 08 Out of scope claims to be reviewed (Binders etc) – Q4 08 Improve functionality and usability to encourage greater usage – Q4 08 Governance structure to be streamlined – Q4 08 Enhanced communication plan – August 08 – ongoing Legacy plan to be developed – Q4 08 Best Practice Group refreshed and promoting general ECF best practice Liaise with IT Infrastructure Review Group