Sue Langley, Director of Market Development, Lloyd’sAdam Stafford, Head of Electronic Distribution, Lloyd’sStephen Moore, International Markets, Lloyd’sPeter Montanaro, Head of Delegated Authorities, Lloyd’s

The coverholder programme

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The Coverholder Programme:

– Continuing 2010-2012 programme of initiatives

– Making it easier to do business with Lloyd’s

– Developing the channel, subject to proper controls

Today’s agenda:

– Reminder of strategic objectives

– What have we done this year

– What is coming up

INTRO & AGENDA

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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: -

1. 2010 survey of 1100 coverholders

2. Structured interviews with key stakeholders (brokers, MAs and key country managers)

3. Structured interviews with MGA ‘advisory panel’

Context: - strategic importance

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Progress to vision

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PROGRESS TO VISION: TECHNOLOGY & STANDARDS VISION: -

- Standard data flowing between all parties without re-keying & ACORD XML widely used

Starting point

No reporting standard forCoverholders, with inconsistentrequests to coverholders.

XML not used Poor quality data in London

Heavy burden oncoverholders, lots of rekeying.

Today

Premium, Claims andUS Property Risk Standards,mandated for new coverholders

XML property standard live

Reporting is becoming easier

Coming up

Working with coverholder system vendors to deliver standards, measure & promote

XML standards for premiumsand claims in progress

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PROGRESS TO VISION: CLAIMS PROCESSINGVISION - Settlement times equal or better than competitor

markets, with reliable electronic claims handling

STARTING POINT

Significant delays for Co-lead claims

Poor feedback onsettlement time for claims referred to London

TPA population not centrallyregistered

today

New Co-lead claims process being piloted

Claims standard delivered to facilitate use of technology

Measurement of processing times underway

Larger MA and Binder brokersImplementing new systems

TPA register being created

Coming up

Implement outcome of pilot

Measure & promote use of standards

-

Implement and maintain TPAregister

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PROGRESS to vision: EDUCATION

STARTING POINT

Many coverholders found Lloyd’s confusing

Coverholders interestedIn learning more, but no accessible training

Lack of awareness of Lloyd’samongst prospectiveclients and coverholders, especially in 20-35 yr age group

CURRENT POSITION

Strategic review of educational requirements in 2010

New educational materials available on www.lloyds.com

LLMIT on-line training is live

The Coverholder Toolkit is live

Australian Diploma launched

COMING UP

Explore LLMIT accreditation in key US States and market globally via country managers

Delegated UnderwritingModule in LMA Academy

Inwards visit programme to be considered

ACII Diploma to be considered

VISION: - range of guidance & educational offerings - clear pathway from introductory to advanced learning - easy to find & use training & guidance materials

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PROGRESS to vision: the coverholder toolkit

Vision: A clear and simple guide to doing business with Lloyd’s - an on-line one stop shop for coverholder information

www.lloyds.com/coverholdertoolkit

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PROGRESS to vision: MARKETING & COMMS

STARTING POINT

No easy way for retail brokersTo find their nearest Lloyd’scoverholder

Coverholders lacking thetools they need to promotethemselves

No consistent communication tocoverholders on key issues

Confusion over the Lloyd’sbrand and when it can be used

Today

New Coverholder Directory live

Lloyd’s Quick Guide explains how Lloyd’s works

New e-bulletin:- ‘CoverholderNews’ launched

New coverholder website

Release of new brand Guidelines

COMING UP

-

Marketing Fact Sheet to help coverholdersexplain Lloyd’s to clients

-

New branded policy jackets to be piloted

‘Coverholder plaque’ pilot for approved US coverholders

VISION: - Regular targeted communication - Easy to find information to understand & explain Lloyd’s - Coverholders well informed about Lloyd’s

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At the start

No London events

Limited local events

Associations or networks in 2 countries

PROGRESS to vision: EVENTS & networks

Vision: Sense of pride & engagement as part of community - vibrant local associations & networks - varied range of local & London events

Today

AAMGA, EU Coverholder & Audit events

and Technology forum in London

Local class of business & awards events

& networking opportunities

Associations & networks in 8 countries*

* = UK, Ireland, France, Sweden, Switzerland, Italy, Spain, Hong Kong

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PROGRESS to vision: brand

Vision: Sense of pride & engagement as part of community - supported by new Coverholder Sub-Brand

Brand guidelines available at :

www.lloyds.com/brand

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The coverholder model is under threat in some jurisdictions(i.e. brokers holding binding authorities):

– Switzerland, South Africa & EU (review of IMD)– Enhanced conflict of interest arrangements proposed– Consultation with BOLT & AAMGA

Bribery Act / Money Laundering / Sanctions

- Legal and IRA teams considering implications for the market- Practical guidance and on-line training being developed

What is coming up: protecting the model Legal and regulatory considerations

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