Compare countries Reference Guide

Compare countries Reference Guide www.lloyds.com/comparecountries July 2015 George.Delis@lloyds.com

Key Contacts George Delis, Global Markets, Market Intelligence Telephone: 020 7327 6199 George.Delis@lloyds.com Bruno Davila, Global Markets, Market Intelligence Telephone: 020 7327 6209 Bruno.Davila@lloyds.com Disclaimer This document is confidential and provided by Lloyd's to Lloyd's managing agents subject to the conditions that the document is used for internal purposes only and that it is not made available to any third party without the expressed written consent of Lloyd's. This document contains third party proprietary material and any unauthorised disclosure by a Lloyd's managing agent may cause Lloyd's to be in breach of its obligations as an authorised licensee of such material. 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, any statement, fact, figure, expression of opinion or belief contained in this document.

Compare Countries CONTENT 1.0 WHAT IS COMPARE COUNTRIES? 1.1 Macro economic & business environment indicator 1.2 Insurance market (local classes, forecasting) 1.3 Exchange rates 2.0 WHAT VERSIONS ARE AVAILABLE? 2.1 On Market Intelligence website 2.2 On MI Portal ( Managing Agent Compare Countries ) 3.0 LLOYD S DATA DEFINITIONS & INACCURACIES 3.1 Lloyd s premium definition 3.2 Lloyd s premium possible inaccuracies 3.3 Lloyd s Service Companies / Coverholders 4.0 KEY GEOGRAPHIC & PREMIUM DEFINITIONS 4.1 Country Of Origin (domiciled of insured) 4.2 Gross Signed Premiums 5.0 WHAT IS SECURE STORE? 5.1 About Secure Store 5.2 Secure Store Structure 5.3 System & Administration 5.4 Administration of Libraries 5.5 File Type Constraints 5.6 File Size & Bandwidth Considerations 5.7 A Note on Usage

MI Portal (using Secure Store) CONTENT 6.0 USING SECURE STORE 6.1 Requesting Access to Secure Store 6.2 Accessing Secure Store 6.3 Cautionary Note on File Transfer Performance 6.4 Downloading Files 7.0 SECURE STORE SUPPORT 7.1 Contacting Support 8.0 SECURE STORE FOR MARKET INTELLIGENCE 8.1 Instructions if you are a user requiring access 8.2 Instructions if you are a devolved administrator 9.0 EMAIL ALERTS FOR MARKET INTELLIGENCE 9.1 Instructions 10.0 GLOSSARY 10.1 Secure Store and SharePoint terms 10.2 LAF Terms 10.3 General Terms

Compare Countries 1.0 WHAT IS COMPARE COUNTRIES? Compare Countries is a data tool that contains statistics on markets along three core dimensions Macroeconomics, insurance markets and Lloyd s. The full dataset is available to download in Excel. 1.1 MACROECONOMIC & BUSINESS ENVIRONMENT INDICATORS Indicators have been collected from the sources listed below: BP (for World Energy Statistics) World Bank (for Doing Business and World Development Indicators) United Nations (for Human Development Index) Heritage Foundation (for Index of Economic Freedom) IMF (for World Economic Outlook data, including forecasts). These have been mapped to data types considered relevant for Lloyd s: For example, the Oil: Refinery Capacities series from BP is mapped to the Energy sector data type. See Lists tab in the excel download for the full list indicators available within each data type. 1.2 INSURANCE MARKET Data on the size of local insurance market is collected from a range of sources, including local regulators and insurance industry associations. Data is available for selected territories, subject to availability and relevance to Lloyd s. The MI team is seeking to expand the range of countries for which data is provided, with a focus on countries most relevant to Lloyd s. LOCAL CLASSES: Data is mapped from local class of business classifications to the OECD classes to aid comparison across countries. Please note that strict comparability of data will differ across countries. Life TOTAL Non-Life TOTAL Non-Life excl. A&H + Motor (calculated) A & H Freight General Liability MAT Motor Other Non-Life Pecuniary Loss Property FORECASTING: The Market Intelligence team has provided a rudimental forecast of each OECD class. This forecast assumes: A constant penetration rate in line with GDP growth from the latest available actual data. The penetration rate is simply the proportion of premiums for the relevant OECD class to GDP, for the latest available year. The premium growth rate simply tracks the nominal GDP growth forecast provided by the IMF. Where the IMF forecast stops, a constant growth rate is assumed up until 2025. 1.3 EXCHANGE RATES Local market data is reported in USD millions, GBP millions and EUR millions, converted from the reporting currency using annual average exchange rates from the IMF. For Lloyd s Gross Signed Premiums (reported in USD millions), exchange rates are used as per Xchanging monthly settlement.

Compare Countries 2.0 WHAT VERSIONS ARE AVAILABLE? 2.1 ON MARKET INTELLIGENCE WEBSITE Lloyd s Gross Signed Premium data, in US$, is provided (source: Xchanging plus Lloyd s Direct Reporting). This is available at the following levels of granularity: by Country of Origin (i.e. domicile of the insured) (available for all) by Direct (i.e. Insurance) and Reinsurance (available for all) by High Level Class of Business (for Lloyd s managing agents only) by Generic Class of Business (for Lloyd s managing agents only) Also included is data on the number of active coverholders and service companies in each territory. 2.2 ON MI PORTAL ( MANAGING AGENT COMPARE COUNTRIES ) In addition to the Compare Countries tool that is available on www.lloyds.com/comparecountries, the Market Intelligence team is launching the Managing Agent Compare Countries tool. This provides users with premium and incurred loss ratio data by country of origin (location of the policyholder) and class of business. This tool is being launched to the market in Q3 2015 via the MI Portal. www.lloyds.com/miportal Data is provided for a given managing agent alongside the Lloyd s total on a like-for-like basis. The analysis is provided to managing agents to aid their business development agendas in selecting and prudently planning for opportunities to write business overseas. The data provided in sheets is derived from policy level data provided by Xchanging. This is already available to the market aggregated at risk code level, which groups policies according to the type of risk covered. In addition a small proportion of the data (approximately 0.5%) is derived from Lloyd s Direct Reporting data, where risks have not been processed through Xchanging. No other Lloyd s data is included in these sheets. To produce the dashboards, Lloyd s aggregates the data by grouping risk codes to provide data at a generic class of business level (often referred to as Lloyd s 60 classes). Lloyd s further applies a filter to show the data by country of origin. To ensure compliance with competition law, Lloyd s has restricted the data it is making available in a number of respects, as set out below. The data provided therefore only will assist with the assessment of longer term trends and opportunities. It does not allow managing agents to make individual pricing decisions or to determine short term underwriting strategies. The following data points have been removed: The data relates to fewer than 10 syndicates 50% or more of the premium is attributable to a single syndicate; or The premium written in respect of the country of origin is less than US$1m The premium volume data will also not be released by Lloyd s less than six months after the period in question. Incurred loss ratio data will not be released less than 12 months after the period in question.

Compare Countries 3.0 LLOYD S DATA DEFINITIONS & INACCURACIES 3.1 LLOYD S PREMIUM DEFINITION Source: Reported data derived by Lloyd s; aggregated policies processed by Xchanging and Lloyd s Direct Reporting. Notes: Data is reported is USD, on a calendar year basis and is signed gross premiums (gross of reinsurance and gross of acquisition costs). This differs from the data published in the Lloyd s Annual Report, which is also on a calendar year basis, but is written gross premiums and sourced directly from Syndicates. Differences are therefore (1) timing inconsistencies between signed and written gross premiums; (2) inconsistent use of exchange rates by Syndicates and Xchanging/Lloyd s Direct Reporting; & (3) incompleteness of Xchanging/Lloyd s Direct Reporting data set for certain classes of business (a substantial amount of premium is not processed by Xchanging and missing from the REG 258 data set; this comprises, for example, UK Motor). Exchange Rates Note: Data has been converted to USD using monthly exchange rates provided by Xchanging. Definitions: Gross Signed Premiums: Original and additional inward premiums, plus any amount in respect of administration fees or policy expenses remitted with a premium but before the deduction of outward reinsurance premiums. Calendar Year: Relates to the calendar year in which the premium, additional or return, is processed by Xchanging. This is irrespective of the actual underwriting year of account, which is determined by the inception date of each risk. Country of Origin: Denotes the domicile of the insured party (i.e. the coverholder or policyholder). This is the country from which demand for the insurance / reinsurance emanates, and is irrespective of the country to which the risk is classified for regulatory reporting purposes. Example: A policy holder in the UK insuring a holiday home in France would be classified as a UK risk by Country Of Origin, but French for regulatory reporting purposes. Similarly a risk incepting on 1st December 2007 would be classified at 2007 Underwriting Year of Account but may not be processed by Xchanging until 2008 and so be allocated to the 2008 processing year. 3.2 LLOYD S PREMIUM POSSIBLE INACCURACIES (in the light of the above definition) In some instances there is the need for Xchanging to correct prior years premium data. For example, this may arise from situations where: refunds have been made on a premium from a prior year, or, a prior year s policy had been in correctly referenced (e.g. incorrect country code or premium amount), or, there may have been a currency change which had to be taken into account (e.g. Turkey). In these cases Xchanging will have made deductions to correct the data. As data is signed premium reported on a calendar year basis, these adjustments will appear in the data in the year of the adjustment (not the year of policy inception). For data reported in Compare Countries, we have not made adjustments to correct for this. In very small markets, it is therefore possible for an overall premium number to be negative (i.e. where deductions relating to prior years are larger than premium flows that year). LLOYD S SERVICE COMPANIES/COVERHOLDERS Data on the number of active service companies and coverholders is taken from Lloyd s database. It should be noted that the coverholder lapse process does not take place at evenly distributed periods. Therefore some years may appear to have larger numbers of service companies/coverholders than were actually active.

Compare Countries 4.0 KEY GEOGRAPHIC & PREMIUM DEFINITIONS 4.1 COUNTRY OF ORIGIN (DOMICILED OF INSURED) COUNTRY OF ORIGIN denotes the country from where demand for the insurance / reinsurance emanates; i.e. the coverholder or policyholder, irrespective of the country to which the risk is classified for regulatory reporting purposes. EXAMPLE: A policy holder in CHINA say a Chinese-based manufacturer insures a factory in BRAZIL. Xchanging figures used by Lloyd s Global Markets classify this policy as a CHINESE RISK by Country Of Origin. This is the only way Lloyd s can cut geographic business flows around the world on a consistent basis at the level of detail required for Market Intelligence products. 4.2 GROSS SIGNED PREMIUMS GROSS SIGNED PREMIUMS means that premiums have been paid and registered through Xchanging. In the case of Xchanging figures used for this purpose, figures refer to GROSS GROSS, which refer to signed premiums before acquisition costs and reinsurance have been deducted.

MI Portal & Secure Store Reference Guide www.lloyds.com/miportal July 2015 George.Delis@lloyds.com

MI Portal (using Secure Store) 5.0 WHAT IS SECURE STORE? 5.1 ABOUT SECURE STORE Lloyd s Secure Store is a secure web-based facility that allows Lloyd s Market users to exchange files with Lloyd s Corporation users. Secure Store may be used by the Corporation to distribute information to market users, and also by market users to upload information to Corporation users. Secure Store has been designed to work with unstructured data, as opposed to form-based data. With the exception of the file types mentioned in section 1.4, files of any type can be uploaded and downloaded via Secure Store. Where previously we may have used, for example, CDs, DVDs, or email, Secure Store now provides a single, convenient, secure location, where information can be delivered between Corporation departments and market entities. Secure Store is secured by the Lloyd s Access Framework (LAF), which has been in place for a number of years and is used as the single sign-on and authentication method for a number of secure systems that are accessed via Lloyds.com. The use of LAF means that your documents can only be accessed by authorised users. 5.2 SECURE STORE STRUCTURE The following diagram illustrates the structure of Secure Store for the Lloyd s Catastrophe Model (LCM) Site. Secure Store System System Site Lloyd's Catastrophe Model Site 2 Document Library Syndicate 1 Syndicate 2 Syndicate 3 Syndicate 1 Syndicate 4 File LCM Return LCM Guidance Notes File 1 Each Secure Store user will have access to at least one document library. The individual libraries are intended for use by a single market entity (for example, by one syndicate or one broker) and by the Corporation. 5.3 SYSTEM & ADMINSTRATION At the system and site level, administration is managed and carried out by Corporation staff. This means that selected Corporation Staff are able to create new Sites, Document Libraries, and library administrators (library administrators are often known also as devolved administrators ). The main work involved in system and site administration is the one at the document library level. Corporation staff will set up at least one system administrator from the relevant company. In the diagram above, for example, Corporation staff would need to set up system administrators for syndicates 1, 2, 3 and 4.

MI Portal (using Secure Store) 5.0 WHAT IS SECURE STORE? (continued) 5.4 ADMINISTRATION OF LIBRARIES Access to document libraries is provided by your Company s system administrator. The system administrator is responsible within your company for the document libraries that are accessible within your company. The system administrator decides who has access to their libraries, and is responsible for ensuring that this access is kept up to date to include all legitimate users, but also only legitimate users. Where it is appropriate, a Secure Store user may also be given access to other document libraries by their system administrator. For example, in the diagram above, Syndicate 1 has two document libraries where an authorised user from Syndicate 1 may have legitimate access. 5.5 FILE TYPE CONSTRAINTS Certain file types may not be uploaded to Secure Store as these can be potentially harmful. These file types are too numerous to list, but a sample (in no particular order) is provided below. The Secure Store system will automatically prevent uploads of any potentially harmful file..exe.com.bat.app.asp.chm.class.cmd.csh.hlp 5.6 FILE SIZE & BANDWIDTH CONSIDERATIONS As with any web based computer system; large files will take some time to upload based on your internet connection. The absolute maximum file limit is 2GB; however the system performs well with files of up to 100MB in size, which can take minutes to upload with a reasonably fast internet connection. 5.7 A NOTE ON USAGE The system is designed as a straightforward and secure method to support certain time-specific business activities. It is not intended as an on-going information source, or as an information portal or storage location for documentation. The only files that should be kept in Secure Store are completed/published files i.e. not work-inprogress.

MI Portal (using Secure Store) 6.0 USING SECURE STORE 6.1 REQUESTING ACCESS TO SECURE STORE Market users must request a Lloyds Access Framework (LAF) account to access Secure Store. This can be requested through www.lloyds.com (login/register). When this is in place the user must then be added to the appropriate group by their system (devolved) administrator (usually one of their own staff) who controls read/write access to the Secure Store facility for their company. 6.2 ACCESSING SECURE STORE To access Secure Store: You must be a registered user on Lloyds.com before you can login to Secure Store. You may use this link https://secure.lloyds.com/registration to register. Click on the Login/Register button on the www.lloyds.com home page. Login with your Lloyds.com email address & Password. Follow the screen prompts as necessary. Once set up, Secure Store can be accessed via: https://secure.lloyds.com WARNING All fields marked with a red asterisk are mandatory 6.3 CAUTIONARY NOTE ON FILE TRANSFER PERFORMANCE As with any web based computer system; large files will take some time to upload based on your internet connection. The absolute maximum file limit is 2GB however the system performs well with files of 100MB in size, which can take minutes to upload with a reasonably fast internet connection. 6.4 DOWNLOADING FILES To download a file from Lloyd s Secure Store, follow the instructions below. Navigate to the library of choice. Hover over the file to be downloaded. Click on the drop down arrow that now appears to the right of the file name. Choose Send To then click on Download a Copy. You will now be prompted to save the file to a location on your computer. File size will influence performance.

MI Portal (using Secure Store) 7.0 SECURE STORE SUPPORT 7.1 CONTACTING SUPPORT For help using Secure Store speak to your Delegated Authority in the first instance. If you still cannot resolve your query please contact the Lloyd s support centre using the details below. Helpdesk: +44 (0)207 327 5333 Email: ITGCustomerSupportCentre@lloyds.com

8.1 INSTRUCTIONS If you are a user requiring access to Secure Store content Please contact the devolved administrator with your Managing Agent to request access to: User Group Name = SecureStore_im04_ma####h_read. To find out who your devolved administrator is, please contact one of the following: SecureStore@lloyds.com or MI Portal (using Secure Store) 8.0 SECURE STORE FOR MARKET INTELLIGENCE contact the Market Intelligence directly at: MarketIntelligence@lloyds.com 8.2 INSTRUCTIONS If you are a devolved administrator in a Managing Agent giving access to a business user Within the LAF administration system, devolved administrators should provide access to the secure store User Group Name = SecureStore_im04_ma#####_read, as per the screenshot below. If you have any issues, please contact one of the following: SecureStore@lloyds.com Screenshot Sample for Managing Agent 2076h

MI Portal (using Secure Store) 9.0 EMAIL ALERTS FOR MARKET INTELLIGENCE 9.1 INSTRUCTIONS On logging-in, you should see two links. Click the link for [your Managing Agent name]. From here, you can click through the Manage My Alerts screen. From here, you can click through the Manage My Alerts screen. In the screen that opens, choose "Add Alert". You can add alerts for both "by country" and "[your Managing Agent name]" content.

MI Portal (using Secure Store) 10.0 GLOSSARY OF TERMS 10.1 SECURE STORE AND SHAREPOINT TERMS Site A SharePoint site is a storage location associated with a particular business task that can be used to share information with other group members who also have access to the site. Document Library - A SharePoint document library is a place on a site where users can create, collect, and update files with others. Document A document can be any permitted file that can be stored in Secure Store. Typical files that are allowed are MS Office files such as Word Docs, Excel spread sheets, etc. Typical files that are not allowed are.exe,.com, or other files that may cause harm. Published files - Market users upload Published files only (no work in progress). Metadata Think of metadata as attributes of an object. Using a book as an example; attributes of the book could include the title, author, and date of publication, subject and ISBM number. All of these attributes can be called metadata of the book. Files uploaded to SharePoint also have metadata that gives information about the file. Content Types - Content types are templates that define metadata that must be provided when a document is uploaded to a Secure Store site. This information enables the Corporation to organise, manage, and handle content in a consistent way in Secure Store. By defining content types for specific SharePoint Sites, the Corporation can ensure that files are managed in a consistent way. Views Users can use views to see the items in a library that are most important to them or that best fit a particular purpose. For example, the SharePoint team can create views of the files in a library that apply to a specific department or the items in a list that were created by a specific person. Views are available for the list or library they are created in. Landing Page A Landing page, in the Secure Store environment, is the default page the user arrives at after passing through LAF. This is the default homepage for Secure Store. Security Trimming Secure Store will only allow users to see Sites and Document Libraries to which they have been given access. Items such as ribbon buttons will also be disabled if the user doesn't have the appropriate permissions. Notification Users can opt to receive (automatic) e-mail notifications when lists or libraries change by creating an alert in Secure Store. Alerts are a great way to keep track of the changes made to Document Library content. 10.2 LAF TERMS Devolved Admin A DA is a super user of LAF. The DA privileges allow the addition of LAF users to specific groups under the control of the DA. This effectively allows a Syndicate super user to add their own staff to their access groups directly connected to their Syndicate Secure Store libraries. LAF Group Access to certain Secure Store features are determined by which LAF group a user is a member of. Access is not granted at individual level. LAF User Market users can become LAF users, then be assigned to specific Secure Store groups by their devolved admins. 10.3 GENERAL TERMS OOTB Out of the box refers to functionality that is delivered by an application without customisation. Market User An external Lloyd s user. Typically Syndicate, broker, member, etc. Corporate User A Lloyd s internal staff member. Work Stream The Business Unit/Dept. requesting/owning a site in Secure Store.

Market Intelligence Market Intelligence provides analysis of the world s insurance industry to help managing agents, brokers and coverholders grow their business internationally.. Compare Countries Country Profiles Market Presentations Class Review Country Roundups Sign up for Market Presentations, Class Review releases & Country Roundups: www.lloyds.com/misignup Contact the Market Intelligence team: www.lloyds.com/miteam Lloyd s

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