1. Leadership, Knowledge, Solutions…Worldwide. Electronic Endorsements Pilot Roger Oldham Head of Market Practice Central Management Its not complicated

2. MarshLeadership, Knowledge, Solutions…Worldwide. 2 E-Placing Support – Is it such a big ask?

3. MarshLeadership, Knowledge, Solutions…Worldwide. 3 Support, not replace ELECTRONIC PLACING DATA EXCHANGE

4. MarshLeadership, Knowledge, Solutions…Worldwide. 4 What is this project all about? Simple The electronic transfer of contract change data between the broker and underwriter using ACORD Standards, via a central validator. What is this NOT? The removal of face to face broking, where it is perceived by a broker or underwriter to be adding value

5. MarshLeadership, Knowledge, Solutions…Worldwide. 5 Where did we start? Assessing the options available: Use of a platform Build own system from scratch, complete with gateway Enhance existing system to ACORD standard specification Marsh starting with existing e-placement foundations Lotus Notes E-Endorsement Database Facility Broker 21 Eurotrade

6. MarshLeadership, Knowledge, Solutions…Worldwide. 6 The E-Messaging Flow MARSH THE EXCHANGE UNDERWRITER TRI SYSTEMS PLATFORM ACORD STANDARD

7. MarshLeadership, Knowledge, Solutions…Worldwide. 7 Practical steps in getting started Internal Put together business case – identify benefits Create a project plan with clear milestones Get senior level sponsorship Make decision on technology to be used Identify key stakeholders within business Create a project team – meet weekly Allocate set responsibilities within that team Decide on mode of communication internally Pick pilot area External Establish firm links with Market Project Managers Understand the project scope and deliverables Participate in relevant Market committees - EMG, MAT Group, PSIG, PSG Work closely with IT service providers Form working partnerships with underwriters Manage external expectations and comms

8. MarshLeadership, Knowledge, Solutions…Worldwide. 8 Route to implementation Testing: Connectivity - Are the simple messages getting through? - Can underwriters respond? Market Acceptance Testing 1 & 2 - Using agreed Market scripts Business Scenario Testing - Identifying, with practitioner input, the most appropriate trading scenarios

9. MarshLeadership, Knowledge, Solutions…Worldwide. 9 A journey of discovery What we found: MAT1 - some of our underwriting partners were not following the scripts - some underwriters only had one person responding - we had to completely repeat MAT1 - underwriters could respond without GUA instructions - underwriters able to enter narrative with an unconditional acceptance MAT2- If a Word version of the EMRCE was attached, underwriters could amend - Leader could say no to notifying contract changes to follow markets - It was possible to send a message without an accompanying document - Will be important to ensure contact names and email addresses updated

10. MarshLeadership, Knowledge, Solutions…Worldwide. 10 Hurdles to jump Exchange governance Exchange Terms & Conditions Internal IT Security IT supplier contract Interchange Agreement MAT/BST Platform updates made available by 1st October Availability of internal resource Cultural resistance

11. MarshLeadership, Knowledge, Solutions…Worldwide. 11 Market Status – E-Endorsement Pilot All Managing Agents are now connected to the Exchange 38 of these MAs are involved in the endorsement pilot 21 brokers are connected the Exchange 19 of these brokers are involved in the endorsement pilot 13 IUA companies are connected to the Exchange 9 of these companies are involved in the pilot A series of practitioner workshops has been delivered – 350 attended All questions from these workshops have been answered – LMA website Message volumes on Exchange growing – 1,100 live placing messages 11,000 supporting messages

12. MarshLeadership, Knowledge, Solutions…Worldwide. 12 Next steps Proceed with a thorough programme of Business Scenario Testing Go live by 1st October 2010 in pilot classes, or earlier if possible Work with trading partners to ensure service levels are maintained Ensure there is a clear programme of internal and external communication Ensure readiness to start rolling out to other classes of business in 2011

13. MarshLeadership, Knowledge, Solutions…Worldwide. 13 Final thoughts This is not simply about the electronic transfer of contract change messages Its the start of a much needed process improvement programme If we get this right, many of our post placing administrative problems will also be reduced The keying of risk data only once, sees the start of our desire to achieve STP This in turn brings about the potential for one data set being used not only for placing and contract changes, but for premium and claims processing also. Its not complicated

14. Leadership, Knowledge, Solutions…Worldwide. This PowerPoint presentation is based on sources we believe reliable and should be understood to be general risk management and insurance information only. Marsh Ltd. is authorised and regulated by the Financial Services Authority for insurance mediation activities only. © Copyright 2010 Marsh Ltd All rights reserved