1. Claims transformation project (ctp) Market Reform Forum 16 September 2009 Kent Chaplin, Head of Claims

2. 2 Ambition - develop long term view of claims management in Lloyds market Guided by steering committee of senior executives from Corporation, LMA and 10 managing agents of varying sizes Market views solicited through extensive consultation Recommendations grounded on clear understanding of todays processes and performance Vision presented to Franchise and LMA Boards who have confirmed their approval Background

3. 3 Vision for Claims within Lloyds market Lloyds reputation for fast and fair claims handling Claims on a par with underwriting Competitive advantage, not back-office Competence of practitioners Lloyds Competitive Advantage Excellence in Underwriting Excellence in Claims Supported by Excellence in Operations Capital advantages Security and strong market ratings Global brand

4. 4 Six key recommendations to drive excellence in claims handling 1.Enhance current segmentation Tailor activities to risk and value of claim Change responsibility for parties in agreement process 2.Introduce choice – managing agents manage claims or provide peer review using In-house teams Lloyds approved outsourced service provider(s) 3.Enable increased flexibility in notification and settlement Allow parties other than London brokers to notify claim Enable direct settlement with clients or their representatives 4. Strengthen Corporations governance role Establish Claims Implementation Board to implement vision Enhance Corporations role in performance management, providing co-ordination and consistency Develop appropriate management information to support performance management 5.Develop Business Systems options Provide more transparency and flexibility Provide better management information Meets wider London Market requirements 6.Implement using step by step approach Prove concept Build market confidence & capability Live roll out only if pilots successful

5. 5 Enhanced Governance Framework Franchise Board Pilots Business Systems Options Claims Implementation Board (Chair Paul Jardine) Rolf Tolle, Kent Chaplin, Nick Furlonge, Sue Langley, Ian Beaton, Andrew McBride, Jeremy Pinchin, Andrew Brooks & Tim Willcock Define business requirements Gap Analysis Identify options Identify partners & Investment assessment Commitment from stakeholders New governance framework Resources & working Groups Prepare for new Claims Agreement Framework Claims Framework Preparation Pilot operating procedures XCS prep work Pilot rules & parameters Pilot measurement MI requirements for pilot & BAU

6. 6 All Managing Agents, Brokers and XCS New ECF claims on new contracts from 01-01-10 (excludes re-signing / renewal of long term policies) Marine (excluding Cargo and Energy), Property D & F, Casualty Treaty All risk codes within these Classes, Excludes Binders 3 tranches: Standard (£0-100k), Mid (£100k-5m) and Complex (>£5m) XCS – sole outsource service provider for the pilot All of the above to be contained in 2010 Pilot Claims Scheme, which will form an addendum to the Lloyds 2006 Claims Scheme Pilot Scope

7. 7 Greater Access Collaboration International platform Choice in processing Parties other than brokers to load the claims Third Parties to load and access documents All parties to see progress of claims Fewer touch points in chain Workflow logic, routing rules, role assignment, deadline handling Greater management information through linking of claims Fewer touches due to up front data capture Worldwide access International standards One entry Automated reporting Direct settlement Ability to outsource to service provider Certainty of payment Linking with customers Better & More Timely information Speed and Flexibility Business systems options will be explored in parallel with piloting The solution will accommodate Brokers & IUAs requirements to form the basis of a single platform

8. 8 Pilot Procedures Scope Guidelines Measurement BSO Group Lloyds, IUA, Brokers MA Working Group XCS Working Group LMA committees MRG Brokers Underwriters IUA LMCSG LIIBA committees Market Engagement LIIBA Working Group

9. 9 June 09 2010 2011 Q1 2011 Pilot evaluation and revision Framework for alternative peer review suppliers Pilot operating procedures Pilots commence with agree MAs, Brokers, CoB. Monitoring, audits, reporting Stakeholder management Pilot activity Governance Preparation Set up Governance Project Control Project Planning PIDs Corporation Recruitment Plan Assessment of pilot results Model redesign Pilot measurement set up Claims resources / academy Expert Management Pilot findings Checkpoint 27.7.09 RFP returned Governance and Claim Framework Pilot measurement and assessment Xchanging Work Package Business Systems OptionsPreferred supplier identified Pilot processes UAT findings Checkpoint Project Milestones

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