ENDORSEMENTS UPDATE

29 May 2008

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MRCE Adoption

PROGRESS SO FAR

Xchanging usage statistics - % of endorsements in MRCE format based upon monthly random samples of 300 - 400 endorsements received

March 2008 11.50%

April 2008 29.00%

May 2008 35.25%

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MRCE Adoption

PROGRESS SO FAR

Xchanging usage statistics

The most recent sample shows that 35 out of the 50 brokers in the sample are drafting (some of) their endorsements in MRCE format

Here’s a snapshot of how the top 20 biggest users look

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MRCE AdoptionBROKER MRCE Non

MRCEBROKER MRCE Non

MRCE

Alwen Hough Johnson 1 6 JLT Reinsurance 0 8

Aon 3 21 Lloyd and Partners 3 13

Arthur J Gallagher UK 6 7 Lockton Co International 5 3

Benfield 2 5 Marsh 7 33

Cooper Gay 1 7 Miller Ins Services 2 7

Haywood Avn 7 2 Price Forbes 2 15

Heath Lambert 4 2 Ropner Ins Services 1 10

Houlder Ins Services 1 7 Tyser 2 4

HSBC 3 13 United Ins Brokers 3 12

Jardine Lloyd Thompson 3 15 Willis 61 21

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MRCE AdoptionBROKER ACTIONS

MRCE really can and should be used for changes to any style of original contract – i.e. not only the MRC

Drive widespread adoption – eliminate the honeycomb!

INSURER ACTIONS

Remember – the GUA must be completed by the Leading Underwriter

Don’t just sit there and carry on agreeing honeycombs – challenge the brokers and tell them that honeycombs have been consigned to the scrapheap and it’s time to move on!

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eMRCE AdoptionThe provision of contact details to the MRO

As at 28th May:-

71 Brokers

34 LMA

46 Insurers

12 IUA

The details can be found at:-

http://www.marketreform.co.uk/RD_P_S_e-MRCE_guidance_pg1.htm

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eMRCE AdoptionMEASUREMENT

An essential component to the success of this initiative (lessons learnt from the successes of Contract certainty, Legacy, A&S, ECF in contrast with the failures of Kinnect, EPS, et al)

Yesterday was the deadline for submitting April data.

Has your organisation done so?

If not, why not?

For those who haven’t developed centralised measurement capabilities, the MRO would much prefer that you send in something as a return rather than nothing – i.e. an estimate would be better than no return whatsoever or failing that, an estimate as to when you think you might be able to submit an eMRCE return

Identify your organisation as being a participant – not just a spectator!

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eMRCE AdoptionBROKER ACTIONS

Culture and behaviour – you have been successfully doing this for years with overseas / non-London market insurers. The only thing holding you back is embedded culture and behaviour along with fear and resistance to change

NON-COMPLEX and NON-URGENT contract changes – send them in electronically and see what happens – you may be pleasantly surprised!

INSURER ACTIONS

Answer the eMRCEs

Consider organising yourselves internally to better deal with these types of contract changes which increasingly are being submitted for agreement electronically.

Don’t just sit there and carry on agreeing simple endorsements on paper – challenge the brokers and tell them to send them electronically - it’s time to move on!

ENDORSEMENTS UPDATE

29 May 2008