1. Control Framework A warm Welcome to the December market Breakfast Group

2. Control Framework Breakfast Group agenda 9:00Festive arrival, breakfast & networkingAll 9:20 Christmas welcomeAli Dove 9:25Lloyd’s International Trading Advice Giles Taylor (LITA) Developments 9:40 Phase II update and a round-up of the year’s Jaana Rouvari achievements For something a little different…. 10:00Lloyd’s in Social MediaLucy Dawson & Kassy Dignam 10:15Q & A All 10:30Close Ali Dove

3. © Lloyd’s Lloyd’s International Trading Advice (LITA) Developments Giles Taylor, Senior Manager, LITA 11 December 2013

4. © Lloyd’s Crystal Approximately 40-45,000 reports are run on Crystal per month. Approximately 12,000 reports are run per month whilst the user is signed into Crystal (accessing the secure content). Around 30,000 of these reports are run by users who have not signed into Crystal (and are therefore accessing limited content only). Source: Crystal Usage Stats, Dec 2013

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12. © Lloyd’s So don’t get stuck… 12 …Log IN!

13. © Lloyd’s Consumer lines business: Market conduct risk Aim: Assess the need for - – expanded market advice on consumer business – more information on conduct requirements Main actions: – Analysis of existing Crystal content (200+ country reports) – Consultation with Market and Lloyd’s International Network – Recommendations for further Crystal content – Consider new conduct risk controls for consumer business – Consult new content on intermediary licensing requirements Consultation group: 13 AmlinCatlinKiln BeazleyHiscoxLiberty BritJubileeSagicor LMA Regulatory CommitteeSportscover

14. © Lloyd’s Priorities identified Subjects ► General  Definition of ‘consumer’  Consumer protection legislation ► Insurance documentation  Pre-contractual notification and disclosure  Insurance documents ► Processing and servicing of risks  Cancellation and non-renewal  Tacit renewal  Claims handling  Definition of ‘complaint’  Complaints handling (internal procedures)  Details of ombudsman (external procedures) Jurisdictions  Australia  Canada*  France  Germany  Italy  New Zealand  South Africa  Spain  US** 14 * At provincial level, Alberta, British Columbia, Manitoba, Ontario, Quebec, Saskatchewan ** At state level, California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, North Carolina, South Carolina, Texas

15. © Lloyd’s Consumer Lines: Next steps ► ‘Core’ information - direct licence jurisdictions (e.g. definition of consumer, complaints procedures) – By end Q4 2013 ► Full consumer information - key countries – Pre-contractual notification, insurance documents, mandatory/prohibited contract terms, cancellation/renewal, claims handling – By end Feb 2014: Australia, New Zealand, Italy, Spain – By end April 2014: Canada, South Africa, France, Germany ► Full consumer information - key US states – Timescale tbc: California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, North Carolina, South Carolina, Texas – Work currently out to tender 15

16. © Lloyd’s Further developments ► Global coverage content for Crystal: – What Lloyd’s can do has a competitive advantage! – Expand information on fronting in unlicensed countries – Guidance on what Lloyd’s can/can’t cover ► Timescale: – Provisionally Q1/2 2014 16 ► Intermediary licensing content: – Gap analysis completed ► Developing proposal for consultation with LIIBA, LMA – Open market intermediation – Coverholder licensing – Scope of information, priority countries (e.g. V25, US) ► Timescale: – Q1 2014

17. © Lloyd’s ? ANY Questions?

18. © Lloyd’s Control framework Phase II Jaana Rouvari 18 Control Framework

19. © Lloyd’s 1. Year’s round up 2. How is the market progressing 3. Key challenges 4. Activities for the next month and new stuff 19 Control Framework Today…

20. © Lloyd’s20 Control Framework Achievements to date.. Bought 530 bacon sarnies 99 Meetings with Managing agents 152 meetings with brokers LIIBA PAG Reg Com IAC DUM BOLT MPG Service providers for… Software Back office processing

21. © Lloyd’s Market Progress 21 Control Framework 21 August 2013 September 2013 October 2013 November 2013 December 2013 Initial meetings with managing agents Managing agent has project resources in place Coverholder risk rating exercise Risk ratings reflected in audit schedules % Completion 100% Complete 40% complete 30% Complete Confirm delivery timeline to Lloyd’s 100% Complete 30% Complete

22. © Lloyd’s Key Challenges 22 Control Framework Workshop with managing agents and brokers where… We all got to know each other a little better Duplication 1.Lead vs. follow 2.Many managing agents to one broker 3.Many brokers/ managing agents to one coverholder

23. © Lloyd’s The brief 23 Control Framework 1.Understand level of involvement from brokers 2.Discuss what evidence of controls operated by brokers does the managing agent need? 3.What evidence can be provided by the broker? The outcome 1.Improved our understanding of the broker’s role 2.Came up with some suggestions for methods of sharing information 3.Captured some additional improvement suggestions next steps Engage with LIIBA Run an identical workshop in January with a different mix to validate our understanding

24. © Lloyd’s In the next month 24 Control Framework Lloyd’s to consolidate and review completed coverholder risk ratings Lloyd’s to commence engagement with managing agent review groups to agree engagement and communications with brokers Lloyd’s to review the deadline Managing agents to commence 1.Risk assessment 2.Gap analysis 3.Remediation work Underpinned by the coverholder audits

25. © Lloyd’s New stuff 25 Control Framework Lineage and Control Framework gap analysis complete - no gaps Phase II Board sign-off wording to be reviewed Feedback on the Control Framework audit questions considered

26. © Lloyd’s Questions? 26 Control Framework

27. © Lloyd’s Lloyd’s and Social Media Kassy Dignam & Lucy Dawson Digital Communications Managers 11 December 2013

28. © Lloyd’s A social solution? Brand personality & transparency International reach in real-time Influence, educate and spark debate Relationship building Listening & leveraging insights

29. © Lloyd’s Protect the brand Buy-in from board Work with legal and risk management Educate the business - guidance & policy Build in time to monitor, respond & report Follow the audience not the platform

30. © Lloyd’s Lloyd’s & social media FacebookYouTubeTwitter LinkedIn InstagramBlogs

31. © Lloyd’s Promoting the brand

32. © Lloyd’s protecting the brand

33. © Lloyd’s Listening & engaging

34. © Lloyd’s #insurancegap Thought leadership & education

35. © Lloyd’s ResearchWebsite Press Release Social E- marketing BlogEvent

36. © Lloyd’s Thank you, Any questions? @lloydsoflondon www.facebook.com/lloyds www.linkedin.com/company/lloyd's-of-london www.youtube.com/user/Lloydsinsurance Lucy.Dawson@lloyds.com Kassy.Dignam@lloyds.com

37. © Lloyd’s Q & A 37 Control Framework

38. © Lloyd’s38 Control Framework Further information on Control Framework – controlframework@lloyds.comcontrolframework@lloyds.com Next Breakfast Meeting – 21 st January 2014 www.lloyds.com/controlframework