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09.15 Registration & coffee 09.30 Welcome - Keith Stern, Regional Manager, UK & Ireland 09.45 Lloyd’s overview - Ed Pennock, Manager, Market Development, International Markets
10.45 Coffee Break
11.00 Tour of Lloyd’s and surveys12.00 Accessing the Lloyd’s market – Broker Registration - Alan Taylor, Relationship Manager, Brokers, Relationship Management
12.45 Meet the CEO of Lloyd’s - Richard Ward
13.00 Networking lunch with the Lloyd’s Market
14.30 Accessing the Lloyd’s Market – Coverholder Registration - Peter Montanaro, Head, Delegated Authorities 15.15 Claims handling at Lloyd’s - Philip Godwin, Senior Claims Manager, Claims 15.45 Wrap-up and next steps - Keith Stern, Regional Manager, UK & Ireland
2008 – 2010 Lloyd’s Total GSP vs Lloyd’s UK GSP (in £ m)(Gross Signed Premiums on a Calendar year basis excluding reinsurance and brokerage commissions)
Source: Market Intelligence calculations based on Xchanging REG 258 as of 31/12/09. Health Warning: These figures differ from Annual Report due to: (1) the timing differences between written and signed gross premiums, (2) inconsistent use of rates of exchange between Syndicates and Xchanging, (3) Syndicates allocating Facultative business as Direct and (4) some premiums from coverholders and service companies premiums not being processed via Xchanging.
2010 Lloyd’s UK Business Profile (Gross Signed Premiums on a Calendar year basis excluding reinsurance and brokerage commissions)
Source: Market Intelligence calculations based on Xchanging REG 258 as of 31/12/09. Health Warning: These figures differ from Annual Report due to: (1) the timing differences between written and signed gross premiums, (2) inconsistent use of rates of exchange between Syndicates and Xchanging, (3) Syndicates allocating Facultative business as Direct and (4) some premiums from coverholders and service companies premiums not being processed via Xchanging.
2010 Survey: Broker top ten countries to develop businessUK, Brazil and France are the territories that brokers would most like to develop business with Lloyd’s next year.
Country Score
UK 45
Brazil 30
France 25
South Africa 25
China 16
Spain 16
Australia 12
Singapore 11Italy 10
Scoring mechanism
1st choices given 5 points
2nd choices – 4 points
3rd choices – 3 points
4th choices – 2 points
5th choices – 1 point
*Brokers could rank up to 5 territories, scored as below for comparison. N.B. Not all of the Brokers responded.
Remaining Countries
Japan 9Germany 6Norway 5Israel 4Sweden 3Hong Kong 2Denmark 2Ireland 1Netherlands 1
2010 Survey: Managing Agent top ten countries to develop businessSingapore, Australia and the UK are the territories that managing agents would most like to
develop business with Lloyd’s next year.
Top ten countries*
Singapore 50
Australia 47
UK 45
Brazil 44
France 36
China 30
Japan 25
South Africa 22
Germany 17
Italy 16
Scoring mechanism
1st choices given 5 points
2nd choices – 4 points
3rd choices – 3 points
4th choices – 2 points
5th choices – 1 point
*Agents could rank up to 5 territories, scored as below for comparison
2010 Survey: Managing Agent distribution interests – Northern Europe Highest interest for coverholder development in the UK and Norway and for service company development in the UK and Switzerland.
Northern Europe
2
2
4
6
6
7
8
7
8
9
8
13
1
2
1
1
2
1
1
2
3
2
4
6
0 2 4 6 8 10 12 14 16 18 20
Luxembourg
Belgium
Netherlands
Denmark
Austria
Germany
Ireland
Sweden
France
Norway
Switzerland
UK
Number of respondents
Specific interest in developing coverholder business
Specifc interest in setting up a service company or presence on the ground
Contact local Country Manager>www.lloyds.com/offices
Access Service Company details in the Coverholder Directory
> www.lloyds.com/directories/coverholders
Access to Lloyd’s for UK/EU BrokersThis roadmap is for local Brokers who are seeking access to the Lloyd’s Market for a local client
Via Local Coverholderlocal Broker / Agent with binding authority, Underwriting Agency
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access the Coverholder Directory
> www.lloyds.com/directories/coverholders
Via Eu Service Company (crossborder)
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access Service Company details in the Coverholder Directory
> www.lloyds.com/directories/coverholders
Via Eu Coverholder (crossborder)local Broker / Agent with binding authority, Underwriting Agency
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access the Coverholder Directory
> www.lloyds.com/directories/coverholders
Via Lloyd’s Broker Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access Directory of Lloyd’s Registered Brokers
www.lloyds.com/directories/brokers
Become a coverholderIn countries with established licence – approval via Delegated Authority Approval Process (contact Managing Agent and Lloyd’s Broker)
Lloyd’s Managing Agent – usually via a Lloyd’s Broker
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access information for prospective Coverholders> www.lloyds.com/coverholders
Become a managing agent approved brokerBecome a non Lloyd’s Registered Broker - approval via individual Managing Agent registration process (direct contact)
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access information on Managing Agents – non Lloyd’s Brokers
> www.lloyds.com/nonlloydsbrokers
Become a Lloyd’s registered broker - approval via Lloyd’s Broker Approval Process
Lloyd’s Managing Agent
Syndicate(s)
Contact local Country Manager> www.lloyds.com/offices
Access information on becoming a Lloyd’s Registered Broker
…and our performance compares well against our peers
100
86
94
99
84
9395
101
91
102
60
80
100
120
Lloyd's US P/C Industry (i) US Reinsurers (ii) European(Re)Insurers (iii)
Bermudian(Re)Insurers (iii)
2006 2007 2008 2009 2010
Sources i) Insurance Information Institute (estimate-2010), ii) Reinsurance Association of America, iii) Company data (8 European companies: 17 Bermudian companies)
Lloyd’s unique capital structure, often referred to as the ‘Chain of Security’, provides excellent financial security to policyholders and capital efficiency to members.
The Corporation is responsible for setting both member and central capital to achieve a level of capitalisation that is robust and allows members the potential to earn superior returns.
Three of the world’s leading insurance rating agencies recognise Lloyd’s strengths and robust capitalisation and the financial strength of the market. In 2010, all three rating agencies reaffirmed our ratings.
The Lloyd’s financial strength ratings apply to every policy issued by every syndicate at Lloyd’s since 1993.
Delegated Authority Standards The Managing Agent has a clear strategy for writing and managing
delegated underwriting as part of its overall business plan
The Managing Agent carries out thorough due diligence of coverholders to which it proposes to delegate authority
The Managing Agent ensures that it has binding authorities in place with each coverholder to which it delegates authority clearly defining the conditions, scope and limits of that authority and which comply with Contract Certainty requirements, including the requirement to demonstrate regularly that insurance documents have been issued within required timescales
The Managing Agent proactively manages delegated underwriting contracts once incepted to ensure compliance with contract conditions
• Information sharing: co-operative claims agreement process
Enforceable & Applicable to every Managing Agent
Principles Framework
• Lower value/high volume claims
• Sufficient local skill
• Outsourcing risk is not “material”
• Cost effective, good for the customer
Triggers for Local Handling
Where are Lloyd’s Claims Handled
• Higher value claims
• Complex claims
• Insufficient local skill
• Where delegation is a material risk
Triggers for London Handling
Both approaches reflect what the customer wants
Ground Rules:
• High standards of due diligence pre-contract • Clearly documented agreements/authorities• Effective audit programmes/oversight • The risk multiplies as relationships terminate• Actively case manage to complete closure
Loss Funds:
• Immediate access to settlement monies
• Balance reduced over time
• Residual monies reclaimed ultimately
Delegated Claims Management Framework
A Key Mechanism for Efficiency and Key Area for Risk
• LMACC – Lloyd’s Market Association Claims Committee
• BACG – Binding Authority Claims Group
• CSRB – Claims Service Review Board
• FIPI – Financial & Professional Lines Claims Group
• LRCG – Lloyd’s Reinsurance Claims Group • LMECG – Lloyd’s Market Energy Claims Group
• Cat Co-Ordination Group – Cross Market Group
Claims Sector Groups
Significant Expertise in a Single Market in a Single Location
Corporation CAT Steering Group deployed
• Multi Disciplinary Group
• Gathering Situational Intelligence
• Directing & Advising
Market CAT co-ordination group:
• Provide Leadership
• Establishing Task Forces
• Identifying challenges and solutions
Lloyd’s Local Network
• Country & Regional Managers
Catastrophe Response
Established & Consistently Proven Track Record
Policyholder notifies claim
Retail broker
Coverholder/ TPA
Lloyd’s broker
Lloyd’s ‘Leader’
Xchanging Claims Services agrees
claims on behalf of following market
Expert
ad
vis
ors
Following Market
The Present Claims Process
Transformation
Programme
Transforming the Future
Claims Transformation Programme
Enhance Lloyd’s reputation for fast and fair claims handling
Faster transaction times
Faster settlements
Improved customer service
Easier Market Access
Choice
Enhanced communication
Via a programme of strategic &
tactical activities
To deliver:
Phase 1 & 2 Pilot
Incoming Claim
Lead Syndicate
XCS
(on behalf of following syndicates)
Incoming Claim
Segmentation rules determine agreement
party (s)
Subscription policies w.e.f.1.4.2006
ECF claims i.r.o policies issued on four COB w.e.f 1.1.2010 &
1.7.2011
2
1
Leader £100,000
£100,000 - £5,000,000
Incoming Claim
Pilot Claims – Agreement Parties
+ Second £5,000,000 +
+ Second
All data at 24th August 2011:
• Total claims in scope: 9,900• Split - 82% Standard, 16% Mid and 2%
Complex
Standard Claims
• Average end to end transaction times improved by 40%
Pilot Results So Far
Concept Proven by Results, Pilot expanded at July 1st
Provide fundamental understanding of insurance principles with core focus on claims
Utilisation of variety of development methods, including hands-on experience
4 x 3-month Placements Lloyd’s Broking House Managing Agency Law Firm / Loss Adjuster
• 12 month programme
Two – Five years claims handling experience
Participants alternate between formal training at Lloyd’s, mini market placements (~2 weeks) and project work
Modular approach:Lloyd’s/The MarketLegal Aspects of Claims
Handling
Talent Initiative – Fifty Professionals over 5 years
Graduate Programme Market Personnel
Priorities
Paying valid claims as quickly as possible:
- Claims Transformation Programme
- Talent – remains a key strategic priority
- Making it easier to do business at Lloyd’s
- Maintaining a strong performance framework
- Broker/Client Feedback is key
Multiple Dimensions, One Objective
David LangHead of Claimst: +44 (0) 207 327 5012f: +44 (0) 207 327 [email protected] Sarah GravestockPA to David Langt: +44 (0)20 7327 5980f: +44 (0)20 7327 [email protected] Philip GodwinSenior Claims Managert: +44 (0)20 7327 5841f: +44 (0)20 7327 [email protected] Helen AshendenSenior Claims Managert: +44 (0)20 7327 5781f: +44 (0)20 7327 [email protected]