From reform to managing change

Dr Richard Ward, Chief Executive, Lloyd’s

Lloyd’s today…

2 From reform to managing change September 2010 © Lloyd’s

So we need to keep evolving… Ruschlikon Initiative

•Group of large European reinsurers, (Swiss Re, Munich Re, Hannover Re et al) •live in the UK, Europe, US and Bermuda. Rule book and implementation standard

New York Insurance Exchange (NYIE)

•Move to resurrect the 1980’s NYIE announced in January. Technology will play a key part.

Council of Insurance Agents & Brokers (CIAB)

•Partnering with LexisNexis to create an insurance exchange to improve the efficiency and transparency of the independent agent based distribution system in US.

•Supported by a broker-controlled and operated entity called The Insurance Exchange Trust (IET).

Netherlands electronic Insurance Exchange System (eABS)

•Owned & governed by the Netherlands Insurance Exchange Association (VNBA) •Covers Placing, A&S and Claims - only Claims is currently live •Will be mandatory for all members of the VNAB

Qatarlyst

•Brings together international insurers/reinsurers and brokers to conduct insurance trading activities •An electronic trading service to facilitate workflow, deliver documentation and provide effective management information - ultimately enable straight though processing capabilities 3 From reform to managing change September 2010 © Lloyd’s

Embracing technology…

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We’ve already seen dramatic change at Lloyd’s…

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Considerable progress so far

 We are on a journey to greater efficiency  But there is still work to be done 6 From reform to managing change September 2010 © Lloyd’s

The Exchange is the next step on our journey

Working alongside Lloyd’s traditional face-to-face interaction between brokers and underwriters 7 From reform to managing change September 2010 © Lloyd’s

One connection, multiple uses

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But we need you to come along for the ride…

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The benefits are many

 Improve customer service  Retain and attract business  Lower operational costs  Reduce operational risk  Improve capital efficiency  Create greater transparency 10 From reform to managing change September 2010 © Lloyd’s

Where we are at: connections

Managing agent, Broker and Company connections 100% 80% 60% 40% 20% 0% Oct-09

Managing agents connected as a % of total capacity

Jan-10 Apr-10

Brokers connected as a % of total premium income

11 From reform to managing change September 2010 Jul-10 Oct-10

IUA companies connected as a % of IUA members

© Lloyd’s

Where we are at: message volumes

Total messages month by month and total cumulative messages 2500 2000 1500 1000 500 0 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Monthly messages Mar-10 Apr-10 May-10 Cumulative messages Jun-10 Jul-10 Aug-10 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 © Lloyd’s 12 From reform to managing change September 2010

Where we’re going…

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But most of all, we want to go from being known for this…

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To being known for this…

15 From reform to managing change September 2010 © Lloyd’s