Plenary Session with Cristina Martinez, Stéphanie Augustin (AXA) and Jocher Koerner (Marsh)

1. Leveraging Insurance to Optimize Risk Management

2. BRUSSELS, 20-21 October
www.ferma.eu
Agenda
1. Partnership as key driver
2. Risk management in practice: Rule of thumb or
analytics-based decision-making?
3. Insurance program structure:
1. Program sophistication
2. Standard vs non-standard exposures
4. Area of improvement: day-to-day operations
1. Servicing
2. Claims handling
3. IT systems
SEMINAR 2014 2

3. BRUSSELS, 20-21 October
www.ferma.eu
Partnership
seen as a key driver for efficient insurance
Risk managers continue to invest in relationships
reflected by their desire:
 for long term agreement or roll-over (50% , an
increase of 25% vs 2012)
 for improved coordination between teams
involved in a claim; in house, brokers, insurers,
(37%)
SEMINAR 2014 3
Confirmation of position of
coverage as quickly as
reasonably possible (as desired
by 43% of respondents)

4. BRUSSELS, 20-21 October
www.ferma.eu
Risk management in practice:
Rule of thumb or analytics-based decision making?
SEMINAR 2014 4

5. BRUSSELS, 20-21 October
www.ferma.eu
Insurance arrangements will become ever
more sophisticated
SEMINAR 2014 5
Increased loss
prevention
activity (43%)
Change in insurance buying
pattern (34%)
= of these, increase in:
- retention (55%)
- limits (40%)
- lines of cover (52%)
Increased use of captives
93% of respondents
are considering changes!

6. BRUSSELS, 20-21 October
www.ferma.eu
Increased use of captives
Don’t
know 9%
Yes 39%
No 52%
33.4%
39.2%
61.4%
41.3%
5.1%
19.6%
Traditional Lines of
Cover
Non-traditional
Lines of Cover
More important
Identical
Less important
Involvement of captive over the next
2 years
Captive user?
6
Yes

7. BRUSSELS, 20-21 October
www.ferma.eu
Insurance arrangements will become ever
more sophisticated
SEMINAR 2014 7
Increased loss
prevention
activity (43%)
Change in insurance buying
pattern (34%)
= increase in:
- retention (55%)
- limits (40%)
- lines of cover (52%)
Move towards more global
programmes with
Master policy and local
policies in selected
Countries
Increased use of captives
93% of respondents
are considering changes!

8. BRUSSELS, 20-21 October
www.ferma.eu
but still some room for improvement in the
local offering
SEMINAR 2014 8
Brazil, Russia, India, China, France, Malaysia, Argentina, Mexico, USA, Nigeria, Turkey, Japan

9. BRUSSELS, 20-21 October
www.ferma.eu
Insurance program structure:
Standard VS non-standard exposures
SEMINAR 2014 9
Non-standard coverages for evolving risks
INSURANCE INVESTMENT
Standard coverages for traditional risks
Standard coverages for traditional risks
(including property damage)

10. BRUSSELS, 20-21 October
www.ferma.eu
Insurance program structure:
Standard vs non-standard exposures
 Stand-alone cyber coverage
SEMINAR 2014 10
19%
5%
2%
1%
72%
<EUR50 million
EUR50 - 100 million
EUR101 -300 million
˃EUR 300 million
No coverage

11. BRUSSELS, 20-21 October
www.ferma.eu
Area of improvement: day-to-day operations
Servicing
SEMINAR 2014 11

12. BRUSSELS, 20-21 October
www.ferma.eu
Area of improvement: day-to-day operations
Large Claims handling
Looking for claims certainty and claims mitigation prior to a loss
 Policy wording tests (39%)
+
 Learned lessons analysis (36%)
 Internal Crisis management
simulations (34%)
SEMINAR 2014 12
Clarity of extent of cover
Anticipation
=
+

13. BRUSSELS, 20-21 October
www.ferma.eu
Area of improvement: Day-to-day operations
IT systems
 Risk and insurance management IT platforms are key for
smooth day-to-day operations.
 There is still some way to go before their capabilities are
optimised.
SEMINAR 2014 13
Area of
Improvement
Internal systems
importance rating
Area of improvement External systems
importance rating
Tailor-made & user-friendly
reporting
44% Tailor-made & user-friendly
reporting
37%
Claims management
tools
38% Technical information /
advice / best practices
31%
24/7 access 24% Claims management
tools
29%

14. Q&A