Best Practice Workflows in the E&S Industry & the Critical Role that Standards Play A session for retail agents, GAs, wholesalers & E&S & specialty carriers

Best Practice Workflows in the E&S Industry & the Critical Role that Standards Play A session for retail agents, GAs, wholesalers & E&S & specialty carriers April 30, 2013 The 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 carriers April 30, 2013

Presenters Lisa Parry Becker, Parry Insurance Tate Tooley, Bloss & Dillard Scott Good, Scottsdale Insurance Company Rebecca Korndorffer, Myron Steves Tammie Miller, Risk Placement Services (RPS) Scott Montney, Cochrane & Co. Jeff Yates, ACT (host)

Todays Agenda Overview about the E&S Joint Working Group -- Jeff Yates, ACT Executive Director Workflow Improvements Lisa Parry Becker, William B. Parry & Son (RA) Tate Tooley, Bloss and Dillard (MGA) Rebecca Korndorffer, Myron Steves (MGA)

Todays Agenda Real Time: Carrier Sub-Group Update Scott Good, Scottsdale Insurance Company Real Time in Production Scott Montney, Cochrane & Company Real Time: Lloyds Sub-Group Update Tammie Miller, Risk Placement Services Whats Next?

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

E&S JWG Sponsors CJ Ketterer/Scott Montney Technology Committee Co-Chairs Jeff Yates ACT Executive Director Cal Durland ACORD Director of Member Relations Mike Ardis Director of Communication & Technology

E&S JWG Constituency MGA/Wholesalers E&S Carriers Retail Agents Vendors

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

E&S JWG Organization Co-Chairs Angelyn Treutel, SouthGroup Insurance Mike Roy, Risk Placement Services SubGroups Carrier Scott Good, Scottsdale Insurance Retail Agent/General Agent (RA/GA) Lisa Parry Becker, William B. Parry & Son Tate Tooley, Bloss & Dillard Lloyds Tammie Miller, Risk Placement Services Sarah Thacker, Lloyds

E&S Joint Working Group Importance of Real Time and Download Drives our daily workflows (communications log) and provides consistency Provides accuracy of data and workflows within our systems Eliminates redundant and disconnected workflows Provides round trip of data back into our system Reduces processing backlog Saves time and money operational efficiency Redirects 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 communication Implement TLS secure email Self-administration tool for retail agents Generic emails: personal@abcagency, [email protected], certificates@abcagency [email protected] Accept ACORD apps Limit supplemental and requests for non-standard data Add pop-ups on MGA website when additional information needed Eliminate redundant data entry

Secure Email using TLS Email is like an open postcard PI often contained on CL applications TLS or Transport Layer Security industry recommended solution Needs to be turned on & key obtained from trusted certificate authority Partner with carriers and large clients Proprietary secure email solutions Real Time is secure See Security & Privacy page on ACT website for TLS infoSecurity & Privacy

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

How Does TLS Work? 15 Carrier Agency Partner Client Encrypted

Benefits of TLS Provides the confidentiality of emails across the Internet Requires 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 issues

RA/GA Subgroup: Workflow Improvements Self-administration tools Tracking status within the website Quote submissions, renewal process, endorsement Access to claim status Renewal questionnaires

RA/GA Subgroup: Workflow Improvements Renewal Questionnaires and Messaging 90 Days in Advance is Preferable The 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 Improvements Enhance communication Send initial quotes to requestor Renewals, underwriting, endorsements to generic email Send full set of quote documents Quote, 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 Contents Line of Business sections Declarations pages Forms and exclusions Interline forms and exclusions Signature pages Additional interests

RA/GA Subgroup: Workflow Improvements

Claims Communication Adjuster assignment Status updates Claim payments First Notice of Loss Claims Inquiry Claims Download, including payments

RA/GA Subgroup: Workflow Improvements Future Development (12 24 Months): Download Commission statement Policy Claims Real-time Logons and complex non-expiring passwords Inquiry transactions: billing, policy and claims Rating ACORD Activity Notes Best Practices implementation guide E-Signatures Accounting: accept credit cards

RA/GA Subgroup: Workflow Improvements Next Steps: MGA Unique Identifiers (NPN) ACORD standard approved November 2012 Update management systems User Guide E-Signatures ID Federation Industry effort to move to federated, digital identities Ongoing Forums

E&S Joint Working Group Real Time with E&S Carriers Scott Good

What are the challenges that we are facing? Exchange of data between wholesalers & carriers is difficult No agreed upon standard Low adoption and implementation rates Exchange of data between wholesalers & carriers is expensive Custom 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 escalating Purpose

The way were doing business has to change. 1.Agree on a standard for sharing data and resist building custom data interfaces. 2.We must increase efficiencies, thus reduces our expenses. 3.With ACORDs help expand the existing ACORD standard so they meet customer needs. 4.Implement based on these standards. Call to Action

Further 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 & Objectives

Demo presented in March 12

System worked as designed: Single XML data request and response utilized Commercial General Liability Rates Returned Forms information returned Minimum premiums returned Transactions completed in seconds (real time) Results of the Demo

We were successful in the implementation of: Commercial General Liability Rate Request/Response Standard Developed Group sign-off ACORD incorporating into the PCS standard Fall 2012 Approved 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 Rating Approved by ACORD Program Working Group 2/28/2013. Final approval May 2013. Carriers begin to adopt the GL Web Service Standard What is available today?

1.Other Lines of Business Work on the Property Rate and/or Rating Standard E&O, D&O, Umbrella, and EPLI Continue the close collaboration with ACORD 2.Educate on the new Standard to enable adoption This begins in the Break-out session where we will walk through the ACORD Technical Specification This is a targeted document (under 50 pages) that just highlights the E&S Standard !!! 3.Discuss other forms of Web Service, outside of Rates, such as: Loss History and Claim Inquiry Submission Other ideas that you might have 2013 and Beyond

E&S Joint Working Group Real Time in Production Scott Montney

E&S Joint Working Group Real Time with Lloyds Tammie Miller

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

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

Lloyds Subgroup 2013 Lloyds reporting standards exist for US property exposures Premiums Claims

Lloyds Subgroup where are we now Lloyds have created spreadsheet templates To assist those manually creating monthly reports As a guide when designing automated reports The 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?

Lloyds spreadsheet template Lloyds has developed Premium & Claims spreadsheet templates Guide to using them Content driven by regulatory reporting requirements Data in the templates fulfills requirements for reporting back to country/state of origin

Overview of Enhancements ACORD XML V1.x message design Large market penetration in US and Canada for property and casualty reinsurance Utilization of preexisting XML message design Notification (Notify) MGA/GA to carrier for activity which has occurred

Basis for design Lloyds spreadsheet standard

Design Equivalent XML V1.x Message Sets Within AccountingSvcRq and AccountingSvcRs services Set 1 BindingAuthorityPremiumTransactionReportNotify BindingAuthorityPremiumTransactionReportNotifyRs Set 2 BindingAuthorityClaimTransactionReportNotify BindingAuthorityClaimTransactionReportNotifyRs

E&S JWG How You Can Join 1. Register on ACORD website at www.acord.org 2. Notify Cal Durland ([email protected]) that you want to be a member of the E&S Joint Working Group & one or more of the following subgroups:[email protected] -- RA/GA Interface -- E&S Carriers -- Lloyds

Resources E&S Joint Working Group Website -- http://esjwg.org/ http://esjwg.org/ TLS Secure Email- ACT webinar & materials ACT webinar & materials Top Improvements for Retail Agent-GA Workflows Top Improvements for Retail Agent-GA Workflows ACT Policy Delivery Work Group

Questions & Open Discussion

E&S Joint Working Group Thank You For Your Time!

Documents

Best Practice Workflows in the E&S Industry & the Critical Role that Standards Play A session for retail agents, GAs, wholesalers & E&S & specialty carriers