Quick Tour International Market Development

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Quick TourInternational Market Development
Version 0.01
International Markets Market IntelligenceSeptemb
er 2009
FOR MANAGING AGENTS AND BROKERS
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Content
Click Box to navigate
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International Markets
From Team structure to key priorities
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International Markets Jose Ribeiro
Operations Kevin ReevesMarianna
PapadakisCarys Lawton
Market Development Matthew Chandler John Threshie
Market Development Stephen Moore Edward
Pennock
Market Intelligence Filip Wuebbeler Govind
RatnamBruno DavilaAlex Milne ? Giuliana Larice
Click link below to download
Key Market Development contacts
www.lloyds.com/marketintelligence

as country manager for Brazil / ? acting as
interim contact / ? Alex Milne is the maternity
cover for Chantal Knight between March 2009
December 2009
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What is International Operations?

• Lloyds has the appropriate representation in key
  territories to meet regulatory requirements and
  the adequately support the Lloyds market
• The international network operates in accordance
  with Lloyds guidelines / compliance framework,
  effectively mitigating risks
• The international network, including all overseas
  staff, receive the support they require in
  performing their functions (inc. HR, property,
  systems)
• The services required by the market are delivered
  efficiently, with a consistent approach
• The profile and value of the international
  network is communicated to and understood by the
  Lloyds market
• Establishment of new offices where required

Managing Lloyds international operations
(outside of North America) including
co-ordinating with other teams to ensure that
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What is market development?

• Promoting Lloyds in overseas territories -
  facilitating access to new markets - educating
  about Lloyds - building relationships /
  understanding interests - hosting local
  networking / promotional events

helping Managing agents develop their business
- sharing local market intelligence / contacts
- building relationships / understanding
interests - acting as agents eyes ears in the
local market - facilitating local meetings /
agent initiatives
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What are the tools of market development?
Licence Network
Office Network
Hard Factors
Stakeholder Engagement
Soft Factors
Market Intelligence
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Philosophy Approach
Understand the region
Understand what MAs and brokers want
Business development ideas
Support from MAs and Lloyds brokers
Country development plan
Better exploit the region
Supported by - regional country managers /
overseas offices - international
markets team in London
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new licence / office decisions
CANDIDATE TERRITORIES
RESEARCH OPPORTUNITY
RESEARCH APPETITE
BUSINESS CASE
Initial research - Global Opportunities
Initial appetite - CEO Survey - LMA /
LIIBA External opportunity - Governments -
Regulators
Further research- Legal Regulatory
opportunities- Regional WatchResearch visit-
Research visit- Identify opportunities
Market consultation - Market Survey- Follow
up MAs / brokers Market visit- Market visit
(if appropriate)
Business case- Strategic fit- Cost / benefit
case
ET Franchise Board DecisionLicence decision
ET Decision Assess mandate to continue
Yes / No
SG Executive Team (ET) Discuss whether
to continue
Yes / No
Steering group (SG) Discuss whether to
continue
Yes / No
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Established Countries
There is wide variation of interest -
Australia, Singapore, HK receive most interest /
Switzerland, France and Germany the least-
China, Germany, Japan have largest no. of MA
interested but not yet active
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3
17
8
Switzerland
13
2
15
9
France
13
6
12
9
Germany
13
7
13
6
China
14
4
14
6
Spain

15
5
15
5
Japan
16
3
14
7
South Africa
16
3
14
6
Italy
17
5
13
5
Hong Kong
17
5
13
5
Singapore
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4
6
7
Australia
Number
0
5
10
15
20
25
30
35
40
45
Active in country, very interested in Lloyd's
presence its development
Interested in Lloyd's presence, please keep
informed of developments and events
Not Yet Active in country, very interested in
Lloyd's presence its development
No current interest and / or need to be kept
informed
Base 40 market survey returns
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Developing Countries
The level of very interested is lower than for
established countries, between 1/3rd and 1/2 of
agents - Scandinavia, Brazil, Ireland and
Netherlands receive most interest - Wide range
of countries with 6 or 7 MA interested but not
yet active
8
6
17
9
Portugal
9
5
17
8
Austria
9
6
17
8
Czech Republic
10
4
18
7
Poland

12
6
13
8
Netherlands
13
6
14
7
Brazil
13
7
11
8
Scandinavia
16
2
12
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Ireland
Number
0
5
10
15
20
25
30
35
40
45
Active in country, very interested in Lloyd's
presence its development
Interested in Lloyd's presence, please keep
informed of developments and events
Not Yet Active in country, very interested in
Lloyd's presence its development
No current interest and / or need to be kept
informed
Base 40 market survey returns
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Potential Country Development
The level of very interested declines, but when
including quite interested there is
significant interest - Russia, Turkey, South
Korea, Hungary, Vietnam receive most interest -
Low level of disinterest across the board
3
16
17
3
Slovenia
Slovakia
3
17
16
3
4
13
16
5
Romania
4
14
18
3
Finland

5
17
13
4
Vietnam
5
18
14
3
Hungary
7
17
12
2
South Korea
Turkey
9
15
14
1
10
14
13
3
Russia
Number
0
5
10
15
20
25
30
35
40
45
Very interested
Not really interested
Quite interested
Not at all interested
Base 40 market survey returns
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Working With The Market

• We seek to work in partnership with the market
  and understand priorities and interests,
  including
• LMA and LIIBA
• Market presentations
• Market development groups (e.g. China, Brazil)
• Managing agent and broker road-shows
• CEO survey of regional interests (managing agents
  and brokers)
• Specific consultation (e.g. Middle East
  development)

Please make use of our regional / country manager
resources
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Market Intelligence Team
OUR Team
OUR Vision
OUR Approach
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Market Intelligence Value Proposition
Market intelligence is driven by
Market intelligence key strengths lie in
Independence Strategic, long-term
focus Access to wide range of information Flexib
le unit to respond to ad hoc development
projects
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83 believe the Market Intelligence products are
valuable.
Managing Agent Survey, 2008
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Market Intelligence 3 Core Products
Quick tour
Global Opportunities
Regional Watch

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Market Intelligence Toolkit www.lloyds.com/marke
tintelligence
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Market Intelligence Quick Tour
How can it help? Quick Tour is designed to
provide a quick understanding of Lloyds key
messages with respect to Lloyds international
reach. Quick has three downloadable sections
About Lloyds, International Market Development
and Country Profiles.
How Does it Work? Quick Tour includes three
interactive ( dashboard allowing quick
navigation to key sections) PowerPoint Show,
which works best in presentation mode to support
work shops and meetings and / or research. In
addition, there is now also a PDF download for
easy print out of each key presentation.
Who is it for? Quick Tour is primarily for
managing agents and brokers.

How can it be accessed? Quick Tour can be
accessed at www.lloyds.com/marketintelligence
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Market Intelligence Global Opportunities
How can it help? Global Opportunities is designed
to help Lloyds, managing agents and brokers to
scan the global environment in 3 key indicators
(Gross Domestic Product, Market Gross Written
Premiums and Lloyds Gross Written Premiums).
Managing agents can also download the raw data
set in a spreadsheet, which includes 20
qualifying factors for business, insurance and
Lloyds business.
How Does it Work? Global Opportunities provides a
2-page summary for key regions (Latin America,
Europe, India, Middle East and Africa (IMEA) and
Asia Pacific). In addition, managing agents can
download the raw data spreadsheet.
Who is it for? Global Opportunities is primarily
for managing agents and brokers.

How can it be accessed? Global Opportunities can
be accessed at www.lloyds.com/marketintelligence

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Market Intelligence Regional Watch
How can it help? Regional Watch is designed to
help share up to date soft and hard market
intelligence on key international territories for
Lloyds. Each Regional Watch has a Market
Intelligence Analyst, who is responsible for
updating his/her territory. While each territory
differs, the presentation aims to cover key
market participants, business classes and
distribution channels as well as up to date
Lloyds statistics.
How Does it Work? Regional watch is an
interactive ( dashboard allowing quick
navigation to key sections) PowerPoint Show,
which works best in presentation mode to support
work shops and meetings and / or research on
specific regions and territories.
Who is it for? Regional watch is for managing
agents only. Managing agents can request their
password by sending and email to
marketintelligence_at_lloyds.com

How can it be accessed? Regional Watch can be
accessed at www.lloyds.com/marketintelligence
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Coverage Regional Watch (71)

• North America (12)
• North America (US) California, Florida,
  Illinois, Kentucky, New York, Texas Work in
  progress Georgia, Louisiana, New Jersey,
  Pennsylvania, South Carolina
• North America (Canada) Work in progress

• Europe (22)
• Large Markets France, Germany, Ireland,
  Italy, Netherlands, Spain, Switzerland
• Small Markets Belgium, Greece, Israel,
  Portugal, Russia, Turkey
• Nordic Markets Denmark, Finland, Norway
  Sweden
• Central and Eastern Markets Austria, Czech
  Republic, Hungary, Poland, Romania

• Latin America (7)
• Latin America Argentina, Brazil, Chile,
  Colombia, Mexico, Peru, Venezuela

• Asia Pacific (15)
• Established Markets Australia, Hong Kong
  SAR, New Zealand
• Emerging Markets Indonesia, Macau, Malaysia,
  Philippines, South Korea, Taiwan, Thailand,
  Vietnam
• Singapore
• China
• Japan

• India, Middle East and Africa (15)
• IMEA Algeria, Bahrain, Bangladesh, Egypt,
  India, Iran, Kenya, Kuwait, Nigeria, Pakistan,
  Saudi Arabia, South Africa, Sri Lanka, Qatar,
  UAE

• Market Intelligence Support

Filip Wuebbeler Europe, Latin America, India,
Middle East and Africa Govind Ratnam Asia
Pacific, Singapore, China, Japan Bruno
Davila North America Alex Milne Europe Global
Opportunities Tool
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Market Intelligence Toolkit

Market Intelligence has published a suite of
tools and resources on lloyds.com, including data
and/or analysis on over 60 territories worldwide
Download toolkit
CORE PRODUCT
Reports written prior to June 2007 are for
Managing Agents only
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Operations Priorities

• Operations
• Define operating model in Europe where possible
• Review overseas benefit packages
• Assess implications of the control framework for
  overseas offices and renew requirements / audit
  as necessary
• Support new licence development initiatives
• Support European market development strategy
  group
• Coordinate the Overseas Risk Matrix (ORM)
  quarterly assessment

• International projects
• Central services to support subscription business
  in Singapore
• New operating model in Japan
• Strengthening Lloyds Reinsurance Company (China)
  Ltd
• Ensure trading centres adhere to franchise
  standards (extension of the room

• Network Support
• Focus Magazine communication with market when
  reps are in London
• New representative induction programmes
• International representatives conference
• Presentations

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Events and Licence Development Options

• Events
• Brazil MARKET DEVELOPMENT TRIP(apr-09)
• South Korea and Vietnam research trip (jun-09)
• Licence Development options
• Portugal Establishment Licence (Apr-09)
• Hungary and Romania RESEARCH TRIP (Jun-09)
• Turkey and Russia ANALYSIS AND REVIEW
• Latin America REINSURANCE COVERHOLDER LICENCES

Lloyds continues to re-assess priorities in view
of economic conditions
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Developing Lloyds Presence
European office model Achieve clarity on
regulatory, legal tax requirements and the
most appropriate office model to support the
market Exploit new resources including new
country manager / development resources and
new establishment licences
Established Lloyds office in Brazil - with
co-location potential for participating managing
agents
Latin America
Europe
Middle East - Continue to assess the potential
for establishing a local presence (in view of
economic conditions)India Continue watching
for legislative changes
Enhance Lloyds Trading Centres and implement
minimum standardsSingapore - identify options
for central services (AS and claims processing)
China - review of current operating model and
underwriting processesJapan - implement new,
more flexible operating model with JFSA approval
Middle
India, Middle East and Africa
Asia Pacific
East and
Africa
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Market Operations and North America
From Team structure to key priorities
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MARKET Operations AND NORTH AMERICA Sue Langley
North America Henry Watkins
Market operations Carl Phillips
Distribution and Overseas Anne Rannie
General Counsel Lloyds America Joe Gunset
Click link below to download
Details on Lloyds America
http//us.lloyds.com/
Chief Operating Officer
Lloyds US Virgin Islands
Lloyds Kentucky
Lloyds Canada
Senior Vice President
Lloyds Illinois
Hank Feuerzeig
Peter Seremetis
Pat Talley
Tony Joseph
Deborah Moor
Maryanne Swaim

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Developing Lloyds Presence
Successful completion of continuing discussions
with OSFI Carry out review of Canadian
coverholder requirements, TELUS services and
Lineage system Open Toronto office and
determine managing agent appetite for
co-location
Enhance organisation, processes and office
structure to support North America market
development strategyImplement North America
marketing and communications strategyWork with
the market to agree distribution strategy and
propose the way forward
US
Canada
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International Regulatory Affairs
From Team structure to key priorities
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International Market Access
International Regulatory Affairs (IRA)
Rosemary Beaver
Rosemary Beaver
International
International
International
International
International
International
International
International
licences
regulatory
trading
regulatory
licences
regulatory
trading
regulatory
affairs
advice
risk
Development
advice
risk
Andrew gurney
Andrew gurney
Cameron Murray
Mark
channell
Andy
wragg
Cameron Murray
Mark
channell
Andy
wragg

International

Crystal trading

International

Crystal trading

Risk management of

Monitoring legislative

Risk management of

Monitoring legislative
regulatory reporting
information on
regulatory reporting
information on
international
developments
international
developments
and trust funds /
international
and trust funds /
international
compliance risk
compliance risk

Manage Lloyds

Manage Lloyds
overseas deposits
regulatory
overseas deposits
regulatory

Co
-
ordination with
response to new

Co
-
ordination with
response to new
compliance
compliance

Control framework

Control framework
G5/risk response on
rules in each
G5/risk response on
rules in each
requirements
requirements
for international
for international
syndicates
country
syndicates
country
regulatory reporting

Enquiries Desk
regulatory reporting

Enquiries Desk

Performance and

Lobbying for

Performance and

Lobbying for
(including reporting
Market enquiries on
(including reporting
Market enquiries on
risk frameworks
improvements/chang
performed by
compliance with
risk frameworks
Improvements /
performed by
compliance with
Finance and
Finance and
development
e in Lloyds
international rules
development
change in Lloyds
international rules
overseas)
overseas)
competitive market
competitive market

Market

Market

Non
-

Non
-
access
access

Regulatory reporting
communications

Regulatory reporting
communications
compliance/breach
compliance/breach
change management
including education.
change management
including education.
resolution with

Regulatory
resolution with

Regulatory
regulators
relationships

Response/input to
regulators
relationships

Response/input to
Business Process
Business Process
management
management

Anti
-
Money

Anti
-
Money
reform agenda

reform agenda

Laundering referrals

International Network
Laundering referrals

International Network
ensuring integrity of
ensuring integrity of
and advice

co
-
ordination of
and advice

co
-
ordination of
reporting data
reporting data
regulatory risk
regulatory risk

Protecting Lloyds

Protecting Lloyds
control
control
against financial
against financial
framework/objectives
framework/objectives
crime/ fraud
crime/ fraud
for representatives
for representatives
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Ideal Regulatory Model

• Single Lloyds licenceAuthorisation that gives
  every Lloyds syndicate the right to carry on
  business in or from the territory.
• Distribution The ability to transact local
  business from the Room or via local independent
  coverholders / local service companies.
• Flexible local operationsDecision regarding
  establishment of local subsidiaries determined by
  business drivers rather than regulatory
  requirements.
• Minimal or no local fundingLloyds not required
  to put up local deposits or trust funds, or, if
  this is unavoidable, does so centrally and to a
  limited extent.
• Minimal reporting requirementsSingle Lloyds
  return or avoidance of full financial returns,
  leveraging UK global reporting. Wherever possible
  provide central reporting to keep Managing Agents
  input to a minimum.
• Proportionate market conduct rulesLocal rules
  that provide a level playing field for all and
  are compatible with Lloyds structure.

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Current Priorities

• Switzerland Explore opportunity to amend basis
  of funding and reporting requirements.
• Portugal Czech Republic Deliver new
  establishment licences develop effective
  regulatory controls.
• Turkey Russia Explore regulatory
  implications regarding licence development.

Europe

• Singapore Ensure implementation completed on
  agreement negotiated in 2008 with MAS to reduce
  funding / reporting. Provide input to support
  centralised regulatory reporting and undertake
  review of Singapore trust funds.
• Australia Hong Kong Explore opportunity to
  amend basis of funding and reporting
  requirements.
• New Zealand Ensure Lloyds will be accommodated
  in new legislation and provides equal trading
  rights.
• Vietnam South Korea Explore regulatory
  implications regarding licence development.

Asia Pacific

• Japan Direct negotiations with JFSA to support
  wider managing agent participation and
  development / reform of effective regulatory
  controls for Japanese office

Japan

• China Ensure new legislation accommodates
  Lloyds and provides equal trading rights.

China

• Middle East Evaluate regulatory obligations
  associated with new trading centre and support
  implementation of regulatory controls.
• India Monitor market for potential regulatory
  changes to enable RI licence to be obtained and
  influence development of legislation to
  support Lloyds trading rights.
• South Africa Explore opportunity to amend basis
  of funding and reporting requirements.

India, Middle East and Africa

• Brazil Provide direction on regulatory strategy
  and direct negotiations to achieve acceptable
  regulatory reporting for Lloyds.
• Latin America Review coverholder licences for
  reinsurance business.

Latin America

• US Monitor developments in US to ensure US
  regulatory reform protects Lloyds interests.
• US Continue negotiations with US regulators to
  support achievement of improved trading rights
  for credit for reinsurance.
• US Lobby for level playing field on Surplus
  Lines for wind up of LATF and separation of JATF
  from Equitas.

US

• Canada Continue dialogue with Canadian
  regulator, OSFI, to protect trading rights and
  secure trading privileges for local and cross
  border business.
• Canada Renegotiate Lloyds regulatory agreement
  in Canada.

Canada
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Distribution Strategy
From Key Forces to key priorities
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Distribution Strategy

• Key forces impacting distribution
• Emergence of new risk-placing markets e.g.
  Bermuda, Dublin, Zurich etc.
• Increasingly sophisticated insurance purchasers
• Broker business models are changing
• Increasing underwriting capability / risk
  appetite of local markets
• Current global economic crisis
• Distribution strategy
• Developed from extensive consultation

The London market and the close relationships
between managing agents and Lloyds brokers
will continue to be at the core of Lloyds
distribution strategy
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Distribution Strategy

• Broker Standards
• Minimum Standards
• Lloyds non-Lloyds brokers to meet same
  minimum prudential standards
• MAs to ensure non-Lloyds brokers meet minimum
  standards.
• Services to be available to Lloyds and
  non-Lloyds brokers
• Relationship management
• Market Intelligence
• Targeted consultation on new licence developments

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Distribution Strategy

• Efficiency / Costs
• Aim of Market Reform initiatives
• Deliver simple and cost effective access to the
  Lloyds market for brokers and managing agents,
  irrespective of their location
• Initiatives deal with increasing efficiency
  reducing costs of operating at Lloyds and
  removal of unnecessary Londonisms - Standards
  - Lloyds Information Project - Lloyds
  Exchange - Central Services

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Distribution Strategy

• Coverholders
• Brand and Relationship management
• Review branding guidelines for coverholders
• Relationship management at a country level (e.g.
  local coverholder associations)
• Process improvements
• Enable simple, efficient and controlled access to
  Lloyds
• Streamline approval process
• Agree standard data sets
• Co-ordinate audit process
• Licence opportunities
• Seek new licences for coverholder business (e.g.
  in territories where Lloyds has a reinsurance
  licence)

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Distribution Strategy

• Current Trading Centres
• Ensure minimum Lloyds standards applied to
  current Lloyds Trading Centres (Singapore,
  China and Japan to be treated as extensions of
  the room)
• Review broker and reinsurer clustering at global
  (re)insurance centres andmonitor potential for
  new Lloyds Trading Centres
• Produce MA guidance on potential use of
  consortiums and lineslips

There are no current plans for new LTCs.
Lloyds needs to focus on improving the current
LTCs, opening the way for new participants
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Disclaimer "This document is intended for
general information purposes only. Whilst all
care has been taken to ensure the accuracy of the
information Lloyd's does not accept any
responsibility for any errors or omissions.
Lloyd's does not accept any responsibility or
liability for any loss to any person acting or
refraining from action as a result of, but not
limited to, any statement, fact, figure,
expression of opinion or belief contained in this
document".
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