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Best Practice Workflows in the E&S Industry & the Critical Role that Standards Play

A session for retail agents, GAs, wholesalers & E&S & specialty carriersApril 30, 2013The session will start shortly!

Best Practice Workflows in the E&S Industry & the Critical Role that Standards Play

A session for retail agents, GAs, wholesalers & E&S & specialty carriersApril 30, 2013

PresentersLisa Parry Becker, Parry InsuranceTate Tooley, Bloss & DillardScott Good, Scottsdale Insurance CompanyRebecca Korndorffer, Myron StevesTammie Miller, Risk Placement Services (RPS)Scott Montney, Cochrane & Co.Jeff Yates, ACT (host)Todays AgendaOverview about the E&S Joint Working Group -- Jeff Yates, ACT Executive DirectorWorkflow ImprovementsLisa Parry Becker, William B. Parry & Son (RA)Tate Tooley, Bloss and Dillard (MGA) Rebecca Korndorffer, Myron Steves (MGA)

Todays AgendaReal Time: Carrier Sub-Group UpdateScott Good, Scottsdale Insurance CompanyReal Time in ProductionScott Montney, Cochrane & CompanyReal Time: Lloyds Sub-Group UpdateTammie Miller, Risk Placement ServicesWhats Next?

Housekeeping ItemsSubmit written questions via Question & Answer Box or Raise your handYou will receive a follow up email, giving you the chance to email presenters with unanswered questionsRecording of session will be posted on http://esjwg.org/ Please join the E&S Joint Working Group & help us advance these workflow improvementsE&S JWG Sponsors

CJ Ketterer/Scott MontneyTechnology Committee Co-Chairs Jeff YatesACT Executive Director Cal DurlandACORD Director of Member RelationsMike ArdisDirector of Communication & Technology

E&S JWG Constituency

MGA/WholesalersE&S CarriersRetail AgentsVendors

E&S JWG MissionFurther the standards-based electronic exchange of information in the E&S market

E&S JWG OrganizationCo-ChairsAngelyn Treutel, SouthGroup InsuranceMike Roy, Risk Placement ServicesSubGroupsCarrierScott Good, Scottsdale InsuranceRetail Agent/General Agent (RA/GA)Lisa Parry Becker, William B. Parry & SonTate Tooley, Bloss & DillardLloydsTammie Miller, Risk Placement ServicesSarah Thacker, Lloyds

E&S Joint Working GroupImportance of Real Time and Download

Drives our daily workflows (communications log) and provides consistencyProvides accuracy of data and workflows within our systemsEliminates redundant and disconnected workflowsProvides round trip of data back into our systemReduces processing backlogSaves time and moneyoperational efficiencyRedirects staff time for service and selling

Effective use of download enables proper formatting and implementation for real time transactions

RA/GA Subgroup: Workflow Improvements

Enhance communicationImplement TLS secure emailSelf-administration tool for retail agentsGeneric emails: personal@abcagency, commercial@abcagency.com, certificates@abcagencyAccept ACORD appsLimit supplemental and requests for non-standard dataAdd pop-ups on MGA website when additional information neededEliminate redundant data entry

Secure Email using TLSEmail is like an open postcardPI often contained on CL applicationsTLS or Transport Layer Security industry recommended solutionNeeds to be turned on & key obtained from trusted certificate authorityPartner with carriers and large clientsProprietary secure email solutionsReal Time is secure

See Security & Privacy page on ACT website for TLS info

How Does TLS Work?At transmission time, TLS creates an encrypted communication session between email serversThe email is then sent through a protected tunnelThe servers de-crypt the message and send it along to the client

How Does TLS Work?

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CarrierAgency PartnerClientClientEncryptedBenefits of TLSProvides the confidentiality of emails across the InternetRequires no changes to the client (desktop)Is a standards-based protocol that is implemented on most email gateways and appliances Its free, no additional licensing is needed. Security certificate is required.Most agencies that have an up-to-date in-house mail server are TLS capable and there are numerous online options.Required mode & opportunistic mode; carrier issuesRA/GA Subgroup: Workflow Improvements

Self-administration toolsTracking status within the websiteQuote submissions, renewal process, endorsementAccess to claim statusRenewal questionnaires

RA/GA Subgroup: Workflow Improvements

Renewal Questionnaires and Messaging90 Days in Advance is PreferableThe above account is set up to automatically renew this year. You do not need to complete a renewal application. The policy will be issued about 20 days prior to the effective date. Please note this account may receive a pricing increase due to changes in underwriting guidelines.We want to offer you the best possible terms, conditions and pricing available in the marketplace. To do that, we need a completed ACORD application. If a supplemental application is needed, we will forward it to you.

RA/GA Subgroup: Workflow ImprovementsEnhance communicationSend initial quotes to requestorRenewals, underwriting, endorsements to generic emailSend full set of quote documentsQuote, bind request, finance agreement, s/l affidavits, terrorism)Send indexed policy document pdfs (new, renewal, endorsements) to generic email

RA/GA Subgroup: Workflow Improvements

Index Suggestions:Table of ContentsLine of Business sections Declarations pagesForms and exclusionsInterline forms and exclusionsSignature pagesAdditional interests

RA/GA Subgroup: Workflow Improvements

RA/GA Subgroup: Workflow ImprovementsClaims CommunicationAdjuster assignmentStatus updatesClaim payments

First Notice of LossClaims InquiryClaims Download, including payments

RA/GA Subgroup: Workflow Improvements

Future Development (12 24 Months):DownloadCommission statement Policy ClaimsReal-time Logons and complex non-expiring passwordsInquiry transactions: billing, policy and claimsRatingACORD Activity NotesBest Practices implementation guideE-SignaturesAccounting: accept credit cards

RA/GA Subgroup: Workflow Improvements

Next Steps:MGA Unique Identifiers (NPN)ACORD standard approved November 2012Update management systemsUser GuideE-SignaturesID FederationIndustry effort to move to federated, digital identitiesOngoing Forums

E&S Joint Working GroupReal Time with E&S CarriersScott Good

What are the challenges that we are facing?

Exchange of data between wholesalers & carriers is difficultNo agreed upon standardLow adoption and implementation rates

Exchange of data between wholesalers & carriers is expensiveCustom Interfaces require custom programming

How do these challenges impact us?

Quoting multiple markets is timely & expensive

Maintaining rates and forms increases error rates

Vendor & systems costs escalatingPurposeImpacts to you:

Challenges of today these are heard loud and clear. Time, expense, inefficiencies, duplication, etc.

Going forward we will make positive impact on expenses, efficiencies, and error rates. This will help control vendor costs.29The way were doing business has to change.

Agree on a standard for sharing data and resist building custom data interfaces.We must increase efficiencies, thus reduces our expenses.With ACORDs help expand the existing ACORD standard so they meet customer needs.Implement based on these standards.Call to ActionMost important agree on a standard. Dont develop in a vacuum.Resist custom interfaces and distribution of raw data. No more sending rates and forms on regular updates and asking someone to update a system.

ACORD is key to helping expand the standard.

Implementation is key. We have to make changes to our system to use this new technology.30Further the standards-based electronic exchange of information in the E&S space.

Showcase implementations that represent what we are trying to achieve.

Create discussion and interaction amongst the relevant parties.

Introduce solutions and vendors that may be useful or adaptable to our needs.

Adapt to the input of our base to stay current and relevant.Goals & ObjectivesWhy were doing this? We all have lots to do, correct?

But we need to change:Further electronic data exchange.Use standards to facilitate more data exchanges.Demo and show what were doing. Let people look under the hood.Stimulate discussion get people talking.Attract additional vendors to our space. More solutions, more creativity, and more competition.Adapt to changing needs, and to stay current on how business and operations are evolving.31

Demo presented in March 12The following were involved in the spring Demos.

Four of the leading E&S Carriers in the market spaceThree vendors who combined have many customers and are key players in the E&S space.

ONE single data request and response was used, and we showed this data during the demos.32System worked as designed:

Single XML data request and response utilizedCommercial General Liability Rates ReturnedForms information returnedMinimum premiums returnedTransactions completed in seconds (real time)

Results of the DemoOur goal:1. Rates returned.2. Forms information returned.3. Minimum Premium information returned.4. Transactions was performed in less than 3 seconds per market.

This eliminates wholesalers having to do all this maintenance themselves. Let the carrier or vendor do it.

Who knows rate and form data better than a carrier? No oneso let them handle it.33We were successful in the implementation of:

Commercial General Liability Rate Request/ResponseStandard DevelopedGroup sign-offACORD incorporating into the PCS standard Fall 2012Approved by ACORD January 2013 (PCS 1.24)Already in production with one carrier

GL Rating (returning fully developed premiums)Revised the PCS standard with ACORD to including RatingApproved by ACORD Program Working Group 2/28/2013. Final approval May 2013.Carriers begin to adopt the GL Web Service StandardWhat is available today?Based on the Proof of Concept from AAMGA Automation in the Spring, were continuing to move forward.

1. Rate request/response as we previously discussed has been approved, and is it ACORD for their approval. Expecting late 2012/early 2013 go-ahead.2. Work is underway now for GL rating. This will return fully developed premiums, minimum premium handling, and forms.3. Will focus on other LOBs most likely property, so we can offer package capability.

34Other Lines of BusinessWork on the Property Rate and/or Rating StandardE&O, D&O, Umbrella, and EPLIContinue the close collaboration with ACORD

Educate on the new Standard to enable adoptionThis begins in the Break-out session where we will walk through the ACORD Technical SpecificationThis is a targeted document (under 50 pages) that just highlights the E&S Standard !!!

Discuss other forms of Web Service, outside of Rates, such as:Loss History and Claim InquirySubmissionOther ideas that you might have2013 and BeyondWork on other LOBs Property, Umbrella & other GL products (E/O, D/O).

Our goal:1. Rates returned.2. Forms information returned.3. Minimum Premium information returned.4. Transactions was performed in less than 3 seconds per market.

This eliminates wholesalers having to do all this maintenance themselves. Let the carrier or vendor do it.

Who knows rate and form data better than a carrier? No oneso let them handle it.35E&S Joint Working GroupReal Time in ProductionScott Montney

E&S Joint Working GroupReal Time with LloydsTammie Miller

Lloyds Subgroup Rewind to early 2010Coverholders were having to provide information on risks, premiums and claims Regulators, reinsurers and investors were asking for more and more informationSyndicates were all asking for different informationMGAs did not want any more systemsRe-keying was commonplace at coverholders, brokers and managing agents

Lloyds Subgroup April 2010 Lloyds VisionStandard flows of information between coverholders and the Lloyd's market Data standards which can be used within and outside the Lloyd's marketMGAs free to choose their systems

Lloyds Subgroup 2013Lloyds reporting standards exist forUS property exposuresPremiumsClaims

Lloyds Subgroup where are we nowLloyds have created spreadsheet templatesTo assist those manually creating monthly reportsAs a guide when designing automated reportsThe spreadsheets are for worldwide requirements, just select the columns you need

Lloyds Subgroup where are we now?Managing agents and brokers in London are investing in new systems

US MGA creates manual spreadsheets or cannot afford to change layout of reports

In London new data mapping tools and systems remove the need for consistent formats

Lloyds Subgroup where are we now?Managing agents and brokers in London are investing in new systems

In London up to date binder systems are designed to receive XML as well as spreadsheets

US MGA wants to use automated XML

Lloyds coverholder reporting standards can be met using ACORD XML

Lloyds Subgroup where are we now?ACORD Knowledge CenterBinding Authority Premium Reporting Standards

20 February 2013

www.acord.org/knowledgeWelcome to the ACORD Knowledge Center and our webinar on XXXXXXXXXXXXXXXX. Im XXXXXXXXXX.

46Lloyds spreadsheet templateLloyds has developedPremium & Claims spreadsheet templatesGuide to using themContent driven by regulatory reporting requirementsData in the templates fulfills requirements for reporting back to country/state of origin

Overview of EnhancementsACORD XML V1.x message designLarge market penetration in US and Canada for property and casualty reinsuranceUtilization of preexisting XML message designNotification (Notify) MGA/GA to carrier for activity which has occurredBasis for design Lloyds spreadsheet standard

Design Equivalent XML V1.xMessage SetsWithin AccountingSvcRq and AccountingSvcRs servicesSet 1BindingAuthorityPremiumTransactionReportNotifyBindingAuthorityPremiumTransactionReportNotifyRsSet 2BindingAuthorityClaimTransactionReportNotifyBindingAuthorityClaimTransactionReportNotifyRs

Thank you XXXXXXXXXXXXXXXXXXXX.

And thanks to all of you for taking part in todays webinar. You will be able to download a recording of this event by visiting the ACORD Knowledge Center.

Be sure to check on some of our other upcoming events and check back regularly for the latest.

We appreciate your attending and have a good day.

[END]51E&S JWG How You Can Join

Register on ACORD website at www.acord.org

2. Notify Cal Durland (cdurland@acord.org) that you want to be a member of the E&S Joint Working Group & one or more of the following subgroups: -- RA/GA Interface -- E&S Carriers -- Lloyds

ResourcesE&S Joint Working Group Website -- http://esjwg.org/ TLS Secure Email- ACT webinar & materials Top Improvements for Retail Agent-GA WorkflowsACT Policy Delivery Work GroupQuestions & Open Discussion

E&S Joint Working GroupThank You For Your Time!