1. www.guycarp.com e-Accounting A Market Reform Initiative 30 th April 2008 Brian Austin – Lloyd’s Corporation - Market Operations

2. 1 Guy Carpenter e-Accounting Vision  Market Reform 2008 Work Plan: “All accounting and settlement of risks to be performed electronically”.  Rapid movement of premium and claims monies  “Right first time” processing  Increased efficiency with lower operational cost  Lower operational risk  In practice this means…  Remove paper  Move to ACORD business messages and validation

3. 2 Guy Carpenter

4. 3 e-Accounting What options do you have? Brokers Carriers Direct messaging Trading platform Messaging hub Electronic Form Email Communication directly between trading partners Communication between partners managed by external provider Transaction processing or workflow provided by external provider Data package creation from screen entry or integration Email between trading partners with or without external provider support

5. 4 Guy Carpenter e-Accounting What’s the process? Process Transaction Update Transaction Produce Statement Update Statement Receive Transaction Process Transaction Receive Statement Reconcile Statement ACORD TA Acknowledgement Business Response Acknowledgement ACORD FA Business Response Exchange Funds

6. 5 Guy Carpenter e-Accounting What’s happened so far?

7. 6 Guy Carpenter Efficiency Increase Process Efficiency Speed up transaction cycle Reduce query delays e-Accounting Why? Effectiveness Improved Client Experience Increase quality & accuracy Reduced errors Reduce re-work Ethical No more paper No more vans Economy Reduce cost of processing No re-keying of data Increase cash flow

8. 7 Guy Carpenter e-Accounting What Now?  Cross market group – coordinated by Guy Carpenter & Company – To gain significant increase in e-Accounting by the end of 2009.  Communication and engagement – Brokers – Managing Agents – Insurance Companies – LMA – IUA – LMBC – Lloyds Corporation – Xchanging

9. 8 Guy Carpenter Measure & target Resource it Use standards don’t tweak Sponsor it e-Accounting What should it mean to firms? Internal change programmes are the key to benefits realisation

10. 9 Guy Carpenter e-Accounting What can you do?  Find out what your firm’s plans are  Identify your firm’s e-Accounting champion  See what you can do to get things moving

11. www.guycarp.com