From reform to managing change Dr Richard Ward, Chief Executive, Lloyds.

From reform to managing change Dr Richard Ward, Chief Executive, Lloyd’s

© Lloyd’sFrom reform to managing change September 20102

Lloyd’s today…

© Lloyd’sFrom reform to managing change September 20103

So we need to keep evolving…

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).

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

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.

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

© Lloyd’sFrom reform to managing change September 20104

Embracing technology…

© Lloyd’sFrom reform to managing change September 20105

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

© Lloyd’sFrom reform to managing change September 20106

Considerable progress so far

We are on a journey to greater efficiency

But there is still work to be done

© Lloyd’sFrom reform to managing change September 20107

The Exchange is the next step on our journey

Working alongside Lloyd’s traditional face-to-face interaction between brokers and underwriters

© Lloyd’sFrom reform to managing change September 20108

One connection, multiple uses

© Lloyd’sFrom reform to managing change September 20109

But we need you to come along for the ride…

© Lloyd’sFrom reform to managing change September 201010

The benefits are many

Improve customer service

Retain and attract business

Lower operational costs

Reduce operational risk

Improve capital efficiency

Create greater transparency

© Lloyd’sFrom reform to managing change September 201011

Where we are at: connections

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Oct-09 Jan-10 Apr-10 Jul-10 Oct-10

Managing agent, Broker and Company connections

Managing agents connected as a % of

total capacity

Brokers connected as a % of total

premium income

IUA companies connected as a % of

IUA members

© Lloyd’sFrom reform to managing change September 201012

Where we are at: message volumes

Total messages month by month and total cumulative messages

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Monthly messages Cumulative messages

© Lloyd’sFrom reform to managing change September 201013

Where we’re going…

© Lloyd’sFrom reform to managing change September 201014

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

© Lloyd’sFrom reform to managing change September 201015

To being known for this…