1. 09.30 Welcome - Keith Stern, Regional Manager, UK & Ireland
09.15 Registration & coffee
09.30 Welcome - Keith Stern, Regional Manager, UK & Ireland
09.45 Lloyd’s overview - Ed Pennock, Manager, Market Development, International Markets
10.45 Coffee Break
11.00 Tour of Lloyd’s and surveys
12.00 Accessing the Lloyd’s market – Broker Registration - Alan Taylor, Relationship Manager, Brokers, Relationship Management
12.45 Meet the CEO of Lloyd’s - Richard Ward
13.00 Networking lunch with the Lloyd’s Market
14.30 Accessing the Lloyd’s Market – Coverholder Registration - Peter Montanaro, Head, Delegated Authorities
15.15 Claims handling at Lloyd’s - Philip Godwin, Senior Claims Manager, Claims
15.45 Wrap-up and next steps - Keith Stern, Regional Manager, UK & Ireland 1 1

2. Welcome & Introduction keith stern, regional manager, UK & Ireland

3. 2008 – 2010 Lloyd’s Total GSP vs Lloyd’s UK GSP (in £ m) (Gross Signed Premiums on a Calendar year basis excluding reinsurance and brokerage commissions)
£ 16,693m
£ 20,347m
£ 20,701m
Lloyd’s (excl. UK)
Growth 08/09
24.1%
Lloyd’s (excl. UK)
Growth 09/10
0.8%
13,736
17,053
17,198
2008
Lloyd’s UK
share
18%
2009
Lloyd’s UK
share
16%
2010
Lloyd’s UK
share
17%
Lloyd’s UK
Growth 08/09
11.4%
Lloyd’s UK
Growth 09/10
6.4%
For many years now UK has been Lloyd’s second largest market as an individual territory market penetration is poor, 2/3% for personal lines and 6/7% for commercial lines.
2,957
3,294
3,504
2008
2009
2010
Total (excl. UK) UK
Source: Market Intelligence calculations based on Xchanging REG 258 as of 31/12/09.
Health Warning: These figures differ from Annual Report due to: (1) the timing differences between written and signed gross premiums, (2) inconsistent use of rates of exchange between Syndicates and Xchanging, (3) Syndicates allocating Facultative business as Direct and (4) some premiums from coverholders and service companies premiums not being processed via Xchanging. 3

4. Direct £ 1.94bn Reinsurance £ 1.56bn
2010 Lloyd’s UK Business Profile (Gross Signed Premiums on a Calendar year basis excluding reinsurance and brokerage commissions)
Type of business
Method of Placement 5%
Direct £ 1.94bn
26%
Reinsurance £ 1.56bn
55%
14%
Lloyd’s Classes of Business
Direct
Facultative
Non-prop Treaty
Treaty
Distribution Channel
32%
(58%, direct)
68%
Coverholders
Brokers
Source: Market Intelligence calculations based on Xchanging REG 258 as of 31/12/09.
Health Warning: These figures differ from Annual Report due to: (1) the timing differences between written and signed gross premiums, (2) inconsistent use of rates of exchange between Syndicates and Xchanging, (3) Syndicates allocating Facultative business as Direct and (4) some premiums from coverholders and service companies premiums not being processed via Xchanging. 4

5. 2010 Survey: Broker top ten countries to develop business UK, Brazil and France are the territories that brokers would most like to develop business with Lloyd’s next year.
Country Score UK
Brazil
France
South Africa
China
Spain
Australia
Singapore
Italy
Remaining Countries
*Brokers could rank up to 5 territories, scored as below for comparison. N.B. Not all of the Brokers responded.
Scoring mechanism 1st choices given 5 points
2nd choices – 4 points
3rd choices – 3 points
4th choices – 2 points
5th choices – 1 point
Top territory where brokers want to develop business: UK 5

6. 2010 Survey: Managing Agent top ten countries to develop business Singapore, Australia and the UK are the territories that managing agents would most like to develop business with Lloyd’s next year.
Top ten countries*
Singapore
Australia UK
Brazil
France
China
Japan
South Africa
Germany
Italy
Remaining Countries
*Agents could rank up to 5 territories, scored as below for comparison
Scoring mechanism 1st choices given 5 points
2nd choices – 4 points
3rd choices – 3 points
4th choices – 2 points
5th choices – 1 point
Top European country where managing agents want to develop business overall: UK
The UK Market is the largest source of revenue for Lloyd's in Europe and, after the US, the second largest for Lloyd's globally. In 2009 the turnover generated by UK amounted to approximately £3.3bn premium income.
Lloyd’s has an established and organically grown network with a strong brand in the UK. However, the Corporation of Lloyd’s has yet to develop an in depth UK Market Segmentation Strategy based on hard data and soft factors to enable an effective prioritisation of Market Development activities.
Such activities can include supporting the market to develop new access routes to profitable business, growing brand awareness among existing and potential clients, and helping lowering perceived and real barriers to entry to do business with Lloyd’s.
The Market Intelligence team, will seek to build upon existing analysis and will be instrumental in devising and implementing a sound methodology for segmenting the UK insurance market with the aim to inform and influence the UK Market Development Strategy for Lloyd’s. 6

7. 2010 Survey: Broker distribution interests – Northern Europe Highest interest for coverholder development in the UK and Sweden.
Northern Europe
Top European country where brokers want to develop coverholder relationships: UK
Important to match to underwriters as most binders are still broked into the market. 7

8. 2010 Survey: Managing Agent distribution interests – Northern Europe Highest interest for coverholder development in the UK and Norway and for service company development in the UK and Switzerland.
Northern Europe
Highest interest in managing agents developing coverholder relationships: UK 8

9. How to access this channel
Access to Lloyd’s for UK/EU Brokers This roadmap is for local Brokers who are seeking access to the Lloyd’s Market for a local client
How to access this channel
Placement
Risk Carrier
Via Local Service Company
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager > Access Service Company details in the Coverholder Directory >
Via Local Coverholder
local Broker / Agent with binding authority, Underwriting Agency
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager > Access the Coverholder Directory >
Via Eu Service Company (crossborder)
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager > Access Service Company details in the Coverholder Directory >
Via Eu Coverholder (crossborder)
local Broker / Agent with binding authority, Underwriting Agency
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager >
Access the Coverholder Directory >
Via Lloyd’s Broker
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager > Access Directory of Lloyd’s Registered Brokers
Become a coverholder
In countries with established licence – approval via Delegated Authority Approval Process (contact Managing Agent and Lloyd’s Broker)
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager > Access information for prospective Coverholders >
Become a managing agent approved broker
Become a non Lloyd’s Registered Broker - approval via individual Managing Agent registration process (direct contact)
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager >
Access information on Managing Agents – non Lloyd’s Brokers >
Become a Lloyd’s registered broker
- approval via Lloyd’s Broker Approval Process
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager >
Access information on becoming a Lloyd’s Registered Broker > 9 9

11. Lloyd’s overview ed pennock, international markets

12. Lloyd’s - key characteristics
Unlike most other insurance brands, Lloyd’s is not a company, it’s a market where our members join together as syndicates to insure and reinsure risk
We have a long history of risk taking, responding to change and customer demands
The Lloyd’s market insures complex and specialist risks – from oil rigs to celebrity body parts to major airlines
Lloyd’s underwriters devise tailored innovative solutions for complex problems
Lloyd’s appetite for risk is guided by long experience and encouraging responsible risk taking
Lloyd's is the world's best known - but probably least understood - insurance brand
This is because Lloyd's is not an insurance company but a market place, where its members (syndicates) come together to write insurance and reinsurance
Supporting capital is provided by investment institutions, specialist investors, international insurance companies and individuals
Over 300 Years of doing business – established when a number of shipping merchants came together to insure their cargo’s and has developed into the global market place it is today

13. … to every type of insurance and challenges…
1887
1906
1911
1969
Lloyd’s first non-marine policy was written at Lloyd’s by Cuthbert Heath.
The San Francisco earthquake claims met by Lloyd’s underwriters established Lloyd’s reputation in the US. He famously cemented Lloyd’s reputation in the US by paying all claims in relation to the 1906 San Francisco earthquake and fire irrespective of policy wordings. Out of catastrophe came innovation, such as excess of loss reinsurance
The first tentative forays into flight by the Wright brothers are much documented. In 1911, Lloyd’s issued its very first aviation policy – in time for the famed London to Manchester prize flight that year.
When Edwin “Buzz” Aldrin and Neil Armstrong set foot on the surface of the moon, it marked the beginning of a new era for insurance. Today, space and satellite insurance is an area in which Lloyd’s continues to pioneer.

14. PIPER ALPHA
1988
EXXON VALDEZ
1989
HURRICANES
1989
ASBESTOS
1980s- 1990s

15. From Reconstruction… to renewal
A plan was devised with the Government to ring fence pre-1992 liabilities and assets and put them into Equitas
Lloyd’s managed to survive but it still didn’t understand the risks the market was involved in taking on.
There was a lack of standards and poor management.
Corporate members were introduced

16. Some Specialist insurance coverage provided at Lloyd’s

17. The leading specialist insurance market
Lloyd’s provides insurance for the majority of the world’s largest companies.
93% of Dow Jones Industrial Average companies
92% of FTSE 100 companies
86% of Fortune Top 50 European companies
81% of Fortune 500 US companies
Top 7 pharmaceutical companies
Top 20 banks
Lloyd’s has global reach and local depth providing business with insurance and reinsurance solutions in over 200 territories.

18. Lloyd’s
Market Structure

19. Lloyd’s market structure
Corporation of Lloyd’s
Management
Coverholders
54 Managing
Agents
178 Lloyd’s
Brokers
Service Companies*
Policyholders
Members
82 Syndicates
Direct
Corporate
Members
Agents
Reinsurance
Individual
Underwriting
Policyholders
Businesses, organisations, other insurers and individuals from around the world who want to protect themselves against risks that could affect them. They approach a broker and explain their individual needs.
Members
Members of Lloyd’s provide the capital to support syndicates’ underwriting. Members include some of the world’s major insurance groups and companies listed on the London Stock Exchange, as well as individuals and limited partnerships.
Syndicates
Underwriters decide which risks a syndicate will underwrite and on what terms. Much of Lloyd’s business is conducted in the Underwriting Room where face-to-face negotiations take place with Lloyd’s brokers regarding the risks they want to place at Lloyd’s.
Managing agents
These are companies set up to manage one or more syndicates. The managing agent employs the underwriting staff and handles the day-to-day running of a syndicate’s infrastructure and operations.
Brokers
Brokers provide advice to clients, negotiate terms with underwriters and service the business during the life of a policy. Depending on the complexity or size of the risk there may be more than one broker in the distribution chain.
Corporation of Lloyd’s
The Corporation oversees and supports the market and promotes Lloyd’s around the world. This includes determining the capital that members must provide to support their proposed underwriting, working with management of underperforming syndicates to improve performance, undertaking financial and regulatory reporting for the Lloyd’s market, managing and developing Lloyd’s global network of licences and the Lloyd’s brand.
BUSINESS FLOW
CAPITAL PROVISION
SEE:
Source: Lloyd’s as at 31/12/10 * some risks are placed directly with managing agent-owned service companies

20. A dynamic and diverse market
As at 1 January 2011, the Lloyd’s market was home to 54 managing agents that manage 82 live syndicates.
Source: Lloyd’s Annual Report 2010

21. Lloyd’s
2010 financial results

22. Solid result in challenging circumstances…
2009
2010
Gross written premiums
21,973
22,592
Combined ratio
86.1%
93.3%
Investment return
1,769
1,258
Profit before tax
3,868
2,195
Return on capital (pre-tax)
23.9%
12.1%
Source: Lloyd’s pro forma financial statements, 31 Dec 2010

23. …and our performance compares well against our peers
COMBINED RATIO %
Sources i) Insurance Information Institute (estimate-2010), ii) Reinsurance Association of America, iii) Company data (8 European companies: 17 Bermudian companies)

24. Lloyd’s Chain of security
Lloyd’s unique capital structure, often referred to as the ‘Chain of Security’, provides excellent financial security to policyholders and capital efficiency to members.
The Corporation is responsible for setting both member and central capital to achieve a level of capitalisation that is robust and allows members the potential to earn superior returns.
Source: Lloyd’s Annual Report 2010

25. Ratings
Three of the world’s leading insurance rating agencies recognise Lloyd’s strengths and robust capitalisation and the financial strength of the market. In 2010, all three rating agencies reaffirmed our ratings.
The Lloyd’s financial strength ratings apply to every policy issued by every syndicate at Lloyd’s since 1993. A+
Fitch Ratings
A+ (strong)
Standard & Poor’s A
A.M. Best
A (excellent)

26. Lloyd’s International network

27. Business Profile Class of business split Geographical split
ROW
Central Asia & Asia 4%
Pacific
10%
US & Canada
43%
Europe
16% UK
20%
Other Americas 7%
Source: Lloyd’s Annual Report 2010

28. Market Development Scope
Office Network
Europe
North America
Europe 4 1 3 3 1 3 2 2
Type
Market Development Scope
Territories 4
Local underwriting with co-located Syndicates
(or via a Lloyd’s regulated entity); Country Manager with Market Development Role
China
Japan
Singapore
South Africa
Australia, Hong Kong (SAR)
Benelux, France, Germany, Ireland, Italy, Poland, Spain, Sweden, Switzerland, UK
Brazil 3
Country Manager with Market Development Role 2
Country Representative for regulatory requirements
Cyprus, Greece, Israel, Malta
New Zealand
Austria, Denmark, Norway, Portugal
Argentina, Belize, Chile
Namibia, Zimbabwe 1
Country Representative for minimum regulatory requirements

29. Lloyd’s why lloyd’s

30. Why Lloyd’s 320+ year history of paying valid claims
Lloyd’s remains in a strong position….
320+ year history of paying valid claims
Innovation and underwriting expertise remains a priority
Financial strength
Strong Financial Results ( £1,899m £3,868m £2,195m)
Lloyd’s Central Fund (Central Assets - £2,377m)
Ratings reaffirmed in 2010 (A+ Standard and Poor’s & Fitch and A with A M Best)
Robust performance management framework minimizes risk to the Central Fund.
Global network of licenses
Ongoing effort to improve access via approved intermediaries

32. Accessing the market – Broker registration alan taylor manager, broker relationship management

33. Agenda Direct access for brokers Registered Brokers
The current registration regime
The minimum standards
The registration process

34. Direct access for brokers
Variety of access routes to Lloyd’s for brokers
Coverholder, service company, wholesale broker and direct
For direct access to managing agents brokers have two routes, become either;
Lloyd’s Registered Broker
Central registration process, providing access to all managing agents subject to Terms of Business Agreements (ToBAs)
Managing Agent Approved Broker (Non-Lloyd’s Registered Broker)
Individual managing agent registration process, providing access only to this managing agent
To do business with another managing agent broker must register again with the second managing agent
For both routes the minimum standards are the same

35. Registered Broker The current registration regime
FSA assumed regulatory responsibility for brokers January 2005
Lloyd’s role in respect of brokers needed to be redefined
Lloyd’s key responsibilities
Prudential
Protecting the brand and reputation of the market
Commercial
Increase the flow of business into the market
Ensure broker can process business at Lloyd’s

36. Registered Broker The minimum standards - 1
Appropriate regulatory approval
FSA, or relevant authority in EU member state, or outside EU equivalent overseas regulatory authority
Evidential – FSA approval letter
Segregated client money accounts
Evidential – letter of confirmation from bank
Enhanced PI coverage
FSA requires €1m per single claim and in the aggregate the higher of €1.5m or 10% of annual income up to £30m
Lloyd’s requires a minimum limit of £3m or 4 times the annual net retained brokerage

37. Registered Broker The minimum standards - 2
Terms of Business Agreement (ToBA)
What is the appetite of the market?
Minimum of one ToBA, preferably several
Adequate systems / procedures for processing business at Lloyd’s
Business is processed centrally on behalf of all Lloyd’s syndicates by Xchanging
Xchanging assess broker capability
Technical manual is produced by broker
Proving knowledge & understanding
Testing and training
Appropriate and functioning software & competent people

38. The registration process
Pre-application meeting
Crucial part of the process
is becoming a Lloyd’s Broker right for your business?
Provides you with the chance to find out more about what you need to do
Formal application
Xchanging and managing agent confirmations
Average application time is 4 months
Much depends on the appetite of the applicant to get through the process

39. The registration process
22 new Lloyd’s Registered Brokers in 2009/10 – 32 applications
successful applications, 5 applications in process
UK regional applicants
2009/11 – 9
A good application?
Good business plan
Already initiated relationship(s) with managing agent(s)
Clear understanding of how the firm will handle central processing
Appetite to get through the process in good time

42. Lloyd’s uk broker programme Richard Ward, CEO

44. lloyd’s delegated authority business peter montanaro, head of delegated authorities

45. Agenda Types of coverholder Numbers Oversight Strategy
Application Process

46. Types of coverholder Approved Lloyd’s coverholder Full authority
Pre-determined rates
Prior submit
Restricted coverholder
Service company

47. Delegated Authority - dimensions
Premium to Lloyd’s
approx £5.5bn in 2010.
Approved coverholders
2,223
Registered binding authorities
6,457
Restricted coverholders
approx 2,500
Service companies
272

48. Delegated Authority Standards
The Managing Agent has a clear strategy for writing and managing delegated underwriting as part of its overall business plan
The Managing Agent carries out thorough due diligence of coverholders to which it proposes to delegate authority
The Managing Agent ensures that it has binding authorities in place with each coverholder to which it delegates authority clearly defining the conditions, scope and limits of that authority and which comply with Contract Certainty requirements, including the requirement to demonstrate regularly that insurance documents have been issued within required timescales
The Managing Agent proactively manages delegated underwriting contracts once incepted to ensure compliance with contract conditions

49. Oversight of Lloyd’s DA Business
Code of Practice
Service Company Code of Practice
Coverholder handbook
Lloyds.com
Crystal
Lloyd’s service standards
Lloyd’s code of conduct
Committees (DUC, BOLT, BACG, LMA-Compliance)

50. Key Issues Delegation/Sub-delegation Trust Accounts Financial Crime
AML
Sanctions
Bribery
Solvency 2

51. STRATEGY AS

52. Context: - strategic importance
A reminder of Lloyd’s strategic plan …
Make placing business into the Lloyd’s market more efficient
Undertake promotional and educational activities aimed at existing and potential coverholders
Provide robust oversight of business written by coverholders
To inform our work: -
2010 survey of 1100 coverholders
Structured interviews with key stakeholders (brokers, MAs and key country managers)
Structured interviews with MGA ‘advisory panel’

53. Premium & claims standards: - agreed & issued
WHAT HAVE we Done: TECHNOLOGY & STANDARDS
Premium & claims standards: - agreed & issued
Premium & claims standards issued
Mandated for new coverholders
Existing coverholders encouraged to adopt

54. What have we done: coverholder experience New marketing & educational material for coverholders
Information pages fall underneath the section heading pages. The information page is highlighted in the left hand column. Any links in the body of the page are shown again in the right hand column. Users can expand headings to show the information they need.
Including: -
- New case studies
- New coverholder directory

55. New coverholder e-bulletin: - Coverholder News
WHAT WE HAVE done : COVERHOLDER EXPERIENCE
New coverholder e-bulletin: - Coverholder News
An update on: -
Lloyd’s annual results
New Reporting Standards
Lloyds.com coverholder site
New LLMIT test
To 2097 coverholders: -
Open & click rates of 40%

56. Hosted coverholder inwards visits
WHAT WE HAVE Done: COVERHOLDER EXPERIENCE
Hosted coverholder inwards visits
‘Lloyd’s hosted events, to provide networking, discuss interests and share experience’
28-30 March AAMGA Programme
- Introduction & tour
- Update presentations
- Broker & Agent shadowing
- Networking sessions
2010 Coverholder Events
- EU coverholder event November, 60 European coverholders CH Technology Forum November, 25 suppliers Over 240 London market attendees
MC/SM

57. What is coming up? – claims
Working to improve claims processes and response times…
Understand current service levels - current process delays in London - MAs and brokers to provide turnaround times for claims bordereaux (TB letter)
Consider options for improvement - consult with market on options
Focus on co-lead claims handling - pilot of new process to start in May (LMA driven pilot) - leaders to look at claims in parallel rather than serially

58. What is coming up: use of Lloyd’s brand
Clearer branding guidelines - ‘show me what I can do?’
Brand
Provide clearer brand guidelines for Coverholders
Explore a sub brand for coverholders at Lloyd’s
Explore brand possibilities
Enhanced Lloyd's branded policy jacket
Explore a coverholder branded certificate/plaque for approved coverholders
Marketing factsheet
Provide a marketing factsheet to help coverholders explain Lloyd’s to their clients

59. WHAT is coming up: other areas
Atlas, events and translated wordings
ATLAS
Training coverholders how to use Atlas
Improving the Atlas front end so easier to use
Events
EU Coverholder Event (3-4 November)
Audit conference (26 September)
Coverholder Technology Forum (28-30 September)
Translated wordings
Model BA contracts (German translation pilot)
Policy wordings (German translation pilot)
Updated model contracts (consolidation of additional clauses)

60. status What is coming up: LLMIT 1 content “Lloyd’s introductory test”
Insurance principles
Main classes of business
Legal principles of insurance
Reinsurance
London market regulation
Structure of London market
Governance & operation of Lloyd’s
Insurance intermediation in London
Underwriting
How business is transacted
Premium & claims processes
“Lloyd’s introductory test”
Introductory stand alone qualification
Basic insurance market principles & practice
E- learning course & exam, globally available
status
LLMIT now available on line
Develop factsheet to explain LLMIT
Prioritise top US States to explore accreditation (e.g. California, N. York, Illinois) 60

61. APPLICATION PROCESS

62. Application Process Atlas Sponsoring Broker and Managing Agent
Business Plan
FSA Approval / Licences
Financials
Insurance
Key staff / Company Experience
Systems / Business Continuity
Standard bordereau
Undertaking

64. lloyd’s claims management – multiple dimensions a single objective phil godwin, senior claims manager, claims

65. Content Major Claims in Context Performance Management Framework
Catastrophe Response
The Claims Process – today
Transforming the Future
6. Priorities

66. Our focus is paying all valid claims swiftly
Major Claims in Context
Press release 13 May 2011, net estimated ultimates:
US$ 1.95bn – Japan earthquake and tsunami
US$ 1.2bn – New Zealand earthquake
US$ 650m – Australia flooding
No material impact on Lloyd’s capital
No expected Central Fund exposure
Our focus is paying all valid claims swiftly

67. Directorate exercising powers approved by the Council
Performance Management Framework
A highly regulated market:
Regulated by the Financial Services Authority
Lloyd’s Corporation regulates the Lloyd’s market via:
- Council of Lloyd’s
- Lloyd’s Franchise Performance Board
- Underwriting & Claims Standards Framework
- Performance Management Directorate
Directorate exercising powers approved by the Council

68. Standards are a Minimum not a Maximum
Claims Performance Framework
Lloyd’s requires all Managing Agents adhere to a minimum of :
- Eight Lloyd’s Claims Management Principles
Forty One individual claims Standards
Enhanced Standards effective January 1st 2012
Lloyd’s Performance Management Directorate:
- ensures adherence
- provides market leadership
- protects the Lloyd’s brand
Standards are a Minimum not a Maximum

69. Enforceable & Applicable to every Managing Agent
Principles Framework
Claims culture: embedded claims focus from top to bottom
Training & development: appropriate skills & resources
Proactive processes: efficient, timely claims handling
Documentation: appropriate audit trail
Reserving: consistent, timely, accurate
Expert management: disciplined & proactive management
Performance measurement: appropriate, regular
Information sharing: co-operative claims agreement process
Enforceable & Applicable to every Managing Agent

70. Where are Lloyd’s Claims Handled
Triggers for Local Handling
Triggers for London Handling
Lower value/high volume claims
Sufficient local skill
Outsourcing risk is not “material”
Cost effective, good for the customer
Higher value claims
Complex claims
Insufficient local skill
Where delegation is a material risk
Both approaches reflect what the customer wants

71. A Key Mechanism for Efficiency and Key Area for Risk
Delegated Claims Management Framework
Ground Rules:
High standards of due diligence pre-contract
Clearly documented agreements/authorities
Effective audit programmes/oversight
The risk multiplies as relationships terminate
Actively case manage to complete closure
Loss Funds:
Immediate access to settlement monies
Balance reduced over time
Residual monies reclaimed ultimately
A Key Mechanism for Efficiency and Key Area for Risk

72. Significant Expertise in a Single Market in a Single Location
Claims Sector Groups
LMACC – Lloyd’s Market Association Claims Committee
BACG – Binding Authority Claims Group
CSRB – Claims Service Review Board
FIPI – Financial & Professional Lines Claims Group
LRCG – Lloyd’s Reinsurance Claims Group
LMECG – Lloyd’s Market Energy Claims Group
Cat Co-Ordination Group – Cross Market Group
Significant Expertise in a Single Market in a Single Location

73. Established & Consistently Proven Track Record
Catastrophe Response
Corporation CAT Steering Group deployed
Multi Disciplinary Group
Gathering Situational Intelligence
Directing & Advising
Market CAT co-ordination group:
Provide Leadership
Establishing Task Forces
Identifying challenges and solutions
Lloyd’s Local Network
Country & Regional Managers
Established & Consistently Proven Track Record

74. Transformation Programme
The Present Claims Process
Policyholder notifies claim
Transformation Programme
Retail broker
Coverholder/ TPA
Expert advisors
Lloyd’s broker
Lloyd’s ‘Leader’
Xchanging Claims Services agrees claims on behalf of following market
Following Market

75. Via a programme of strategic & tactical activities
Transforming the Future
Claims Transformation Programme
Enhance Lloyd’s reputation for fast and fair claims handling
To deliver:
Faster transaction times
Faster settlements
Improved customer service
Easier Market Access
Choice
Enhanced communication
Via a programme of strategic & tactical activities 75

76. determine agreement party (s)
Phase 1 & 2 Pilot
Subscription policies w.e.f
ECF claims i.r.o policies issued on four COB w.e.f &
XCS
(on behalf of following syndicates) 2 1
Segmentation rules
determine agreement party (s)
Lead Syndicate
Incoming Claim
Incoming Claim

77. Pilot Claims – Agreement Parties
Incoming Claim
+ Second £5,000,000 +
Discretion
£100,000 - £5,000,000
+ Second
Leader £100,000

78. Concept Proven by Results, Pilot expanded at July 1st
Pilot Results So Far
All data at 24th August 2011:
Total claims in scope: 9,900
Split - 82% Standard, 16% Mid and 2% Complex
Standard Claims
Average end to end transaction times improved by 40%
Concept Proven by Results, Pilot expanded at July 1st

79. Talent Initiative – Fifty Professionals over 5 years
Graduate Programme
Market Personnel
12 month programme
Two – Five years claims handling experience
Participants alternate between formal training at Lloyd’s, mini market placements (~2 weeks) and project work
Modular approach:
Lloyd’s/The Market
Legal Aspects of Claims Handling
Provide fundamental understanding of insurance principles with core focus on claims
Utilisation of variety of development methods, including hands-on experience
4 x 3-month Placements
Lloyd’s
Broking House
Managing Agency
Law Firm / Loss Adjuster

80. Multiple Dimensions, One Objective
Priorities
Paying valid claims as quickly as possible:
- Claims Transformation Programme
- Talent – remains a key strategic priority
- Making it easier to do business at Lloyd’s
- Maintaining a strong performance framework
- Broker/Client Feedback is key
Multiple Dimensions, One Objective

81. David Lang Head of Claims
t: +44 (0) f: +44 (0)
Sarah Gravestock PA to David Lang
t: +44 (0) f: +44 (0)
Philip Godwin Senior Claims Manager
t: +44 (0) f: +44 (0)
Helen Ashenden Senior Claims Manager
t: +44 (0) f: +44 (0)

83. Lloyd’s Next steps 83

84. UK – 2011 programme (supporting lloyd‘s key priorities)
Lloyd’s KS presentation to Durham Business School 14 April
Birmingham KS presentation Aston Business School 3 May
Manchester BIBA National Conference – Lloyd’s Stand & Workshop May
Belfast Networking & Promotional Event May
Bournemouth AIRMIC National Conference – Lloyd’s Stand & Workshop June
London Reps Conference – engagement with MGAA June
Lloyd’s AIRMIC Academy workshop July
Lloyd’s Inwards Broker Programme – 50 regional brokers attending 7 September
Lloyd’s Official launch of MGAA in the Old Library 8 September
Weybridge Broker Expo South – Lloyd’s Stand September
Lloyd’s AIRMIC Annual Lecture Cocktail Function – RW to host 27 September
Birmingham KS presentation to Birmingham Insurance Institute 2 November
Lloyd’s European Coverholder Conference – 15 UK coverholders to attend 3-4 November
Lloyd’s KS presentation to Lloyd’s market November
UK Coverholder visits on-site – approx 35 in first 12 months Ongoing
UK Non-Lloyd’s broker visits Ongoing
UK Sustain contact with media – Insurance Age, Post Magazine etc Ongoing
The activities are not about critical masse or ticking boxes but they are linked back to our strategic intentions to consider writing more business via regional brokers and MGAs, but in a considered and disciplined environment. At a staff forum earlier this year RW spoke about the importance of brand recognition and as far as the UK is concerned we know that brand recognition is not necessarily an issue but it is really about accessing the brand too. 84

85. Proposals for 2012 BIBA 2012 – Lloyd’s stand
AIRMIC 2012 – Lloyd’s stand
2 x Regional/class of business events in the UK
Expos – Coventry and Weybridge
2 x Inwards broker programmes
On site visits for new coverholders – emphasis on education and brand
Presentations to business schools and institutes 85

86. Further information
Identifying/authenticating market practitioners -
Information relating to UK -
Becoming a Lloyd’s Coverholder -
Becoming a Lloyd’s Registered Broker -
Attending future regional events around the UK -
Making a claim/lodging a dispute -

87. 87