Meeting the challenge of Pre -Bind Quality assurance

Meeting the challenge of Pre -Bind Quality assurance: Wordsensa QA 12 th October 2007

Speakers l Kieran Flynn, Franchise Performance, Lloyd’s l Martin Anderson & John Mountford, Adsensa Ltd l Customer panel: ¢ Paul Gold - Canopius ¢ Steve Breen - Catlin ¢ Richard Dyke – Benfield 2 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Agenda l Our vision for Pre-Bind Quality Assurance ¢ why this is important for the market ¢ the role of Wordsensa QA l Demonstration of Wordsensa QA (v 2. 0) l Looking to the future l Wordsensa Customers’ panel l Question & answer opportunity 3 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Lloyd’s vision for PBQA (1) l l Market Bulletin Y 4015 confirms risk-based approach expected Slips are developed between brokers and insurers which meet all quality criteria, before lines put down Major reliance upon skilled underwriting/ wordings personnel, supported with the right tools, at the right time Using quality criteria/ information sources: ¢ ¢ Lloyd’s QA Tool checks (including Contract Certainty) ¢ Crystal-based guidance (tax & regulatory) ¢ l MRC framework & guidance Lloyd’s Wordings Repository (vetted model wordings) Providing options for firms to achieve their quality objectives – recognising the general transition to electronic processes 4 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Lloyd’s vision for PBQA (2) l l A faster, more efficient placement process, limiting unnecessary rejections and rework, making Lloyd’s a more cost-effective place to do business Brokers have a consistent understanding of the standards expected and can deliver PBQA-checked documentation to insurers Managing agents adopt a common checking standard to demonstrate the quality of compliance – using their own choice of tools/ services Mixed market slips can be checked using the same rules 5 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

As a consequence… l l The placement process will be streamlined by consistent well understood checking – wordings agreed before inception Supports experienced slip reviewers with different requirements, BUT everyone can perform checks using the same system/ rules Scarce expertise can be applied more effectively AND the experts will still be in control in this specialist market Checking would not be variable, inconsistent or slow – reducing delays for all concerned l Rules provide consistent definition of the QA Tool checks l Reducing legal disputes regarding contracts l Wordsensa QA users can define bespoke additional Checks l Market moves further into electronic processes 6 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Lloyd’s partnership with Adsensa Ltd l Two objectives: ¢ ¢ l Convert the QA Tool checks to more specific rules, capable of automated support for slip review Use Wordsensa QA s/ware to automate the running of those rules, with intelligent reporting and audit trails Providing managing agents & others wanting the facility with choices: ¢ ¢ l l Install Wordsensa QA s/ware in house and customise or, utilise the s/ware via a service provider Recognising that Wordsensa QA is ‘decision support’ for experienced personnel – not a standalone automated solution providing finished slips Intention over time to integrate Wordsensa QA with all relevant information sources 7 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

So what does Wordsensa QA do? l l l 8 Wordsensa QA Presentation 12 October 2007 Slips can be in any form: Paper, Image, Word document or XML The Slip is analysed by Wordsensa before it can be checked Checks must be selected ~ probably using the QA Tool Wordsensa will check the Slip and report its findings The user must review the results and confirm, amend or comment The results can be Printed, exported, linked to the slip etc. © Lloyd’s

DEMO Wordsensa QA v 2. 0 9 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Examples of Wordsensa QA use in the Market Checking can be performed by experienced personnel on any system and at any stage in the process e. g. l ¢ ¢ ¢ 10 Brokers at quotation stage - delivered electronically - report with check results Electronic or paper slips pre-checked by Underwriting Assistants Paper slips scanned and loaded at the box whilst commercial discussion taking place and then checked Electronically to a service provider where the slip can be checked supported by Wordsensa QA Followers can quickly validate the Leader’s checking Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Looking to the future Today you can: ¢ ¢ ¢ extend Rules by writing your own link to Wordsensa Professional -> matching, wording lookup and other tools integrate with DMS e. g. Swordfish We are planning for: ¢ continuous improvement of the rules based on market feedback ¢ enhancing the QA Tools ~ easier to find the checks you need ¢ writing rules for delegated authority slips ¢ linking to Crystal from Wordsensa QA and the QA Tool ¢ Acord conformance via MRC alignment ¢ electronic submission of slips 11 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Lloyd’s market adoption of Wordsensa QA l l 32 managing agents have confirmed acceptance & are using or about to use the system OM Rules for all Classes of Business and Territories in place - all market slips can be run against the rules l Wordsensa V 2 (server) is now being run in beta sites l Progress assessed in time savings and consistency of outputs l Rules reflect Market Reform Contract framework Is your firm planning to check its 1 Jan renewals using Wordsensa QA ? 12 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

Wordsensa Customers’ panel l Brokers’ views: ¢ ¢ ¢ Assists slip preparation Increases speed of review & feedback Certainty of rules, for all parties l Managing agents’ views: ¢ ¢ Adsensa provides support System is tuned to support brokers and insurers System easy to use Makes experienced staff more efficient & effective Rules written intelligently Assists review & audit processes ¢ No major concerns in testing ¢ Considering bespoke rules Another step into electronic world We are all seeking to serve our customers for insurance 13 Wordsensa QA Presentation 12 October 2007 © Lloyd’s

In conclusion l Valuable tool to assist brokers and managing agents with PBQA l Planned development/ deployment continues l Deployment options for managing agents and brokers to consider l Adsensa Ltd ready to provide assistance l Service providers can deploy the software if preferred l Enquiry address: - Wordsensa. QAqueries@lloyds. com Any Questions? 14 Wordsensa QA Presentation 12 October 2007 © Lloyd’s