Trevor Maddison

Electronic claims

Trading claims electronically

Date 29th March 2007

Marsh 2

Electronic Claims File (ECF)

• Brokers and underwriters are committing themselves to the

implementation of electronic claims file trading

• Trading partnerships are being created to deliver electronic claims information directly from the broker’s desktop to the underwriter’s desktop

• ECF enables review, negotiation and settlement of the claim electronically without the dependency on the paper file

• Workflow and management of the claim is performed at the desktop, improvements in productivity and client service will be some of the key deliverables

• Lloyds are live and we fully expect the IUA to go live 2nd Qtr 2007

Marsh 3

How will ECF work

• ECF works in combination with Class and the repository to deliver structured claims information electronically to each element of the three London underwriting bureau markets

• Underwriters will access Class to review financial data and manage claims transactions in collaboration with the published claims agreement rules

• Class data will be supported by electronic placement and claims documents held in the market repository

• Instead of the traditional scratch on the file for agreement, underwriters will agree and comment via Class

• The supporting documents in the repository will replace the traditional hardcopy claims file and becomes the electronic claims file (ECF)

Marsh 4

How will ECF work

Class and the repository allows us to present information concurrently to all underwriters on risk rather than single presentation to each individual underwriter/agreement party, each broker visit

Brokers and underwriters have commenced the transition to electronic, paperless trading of claims

Marsh 5

How ECF will work

· References· Paid / Outstanding

Amounts· Claim Status /

Agreement

· Reports· Correspondence· Bordereau

ECF Screens

CLASS

Repository

Broker Input

Agreement Parties Can Review All Claim Details, Perform Updates & Record Agreement in One Place

Data

Documents

Insurer Access &

Input

Marsh 6

ECF Benefits

ECF delivers improvement in timeliness (delivery) quality and consistency of claims information presented to underwriters

The repository allows Underwriters to have 24/7 access to placement & claims information

Underwriters view & capture important reserve information concurrently

Brokers will focus on quality client/underwriter service (claims advocacy) for value claims, the 80/20 rule

Removes the need for a broker delivered hardcopy claim file

Claims review process initiated electronically by Class (lead underwriter) not by broker

Broker visit only required if underwriter requested or deemed client essential, complex claim issues, the 80/20 rule

Marsh 7

ECF Status

All Lloyds live managing agents and certain runoff agencies have signed the repository rules and have therefore signalled their commitment to trade electronically

IUA underwriters will complete their ECF pilot end of 1st Qtr 2007, at the end of this pilot IUA will confirm their commitment to ECF and publish a implementation timetable

The market objective is to trade all new claims (in scope), all classes of business, electronically by December 2007 for the bureau market.

2007 is a transition phase to full trading, during this transition there will be many business, cultural and procedural issues to manage both internal and externally

Brokers and underwriters must drive usage / volumes with their key trading partnerships

Marsh 8

Key Objectives

Right first time submissions

– Data quality

– Document quality

Deliver best practice

Consistent creation and delivery of the class data message

Consistent input of documents to the repository

Timely delivery of electronic claims to underwriters

Timely response by underwriters to brokers (service levels)

Working within the guidelines of the System Process and Procedures

Marsh 9

Risks & Issues

Out of Scope

Low volumes

Broker / underwriter take up (committed)

Cumulative incomplete transactions not actioned

Data / document quality which results in rejections

New participants Implementation support

Marsh 10

Key market reform information

www.marketreform.co.uk