global insurance requirements

2. 2 Discussion Topics Overview from a Cargo Perspective John Barnwell, Allianz Global Corporate & Specialty Theoretical and Practical Considerations Bruce Eberly and Bruce Wineman, Aon Global

3. 3 Ah, Globalization

4. 4 Topics to Cover Growth in Sector Complex Environment Implications of Non-Compliance Possible Solutions

5. 5 Growth in Sector

6. 6 Growth in Sector

7. 7 Growth in Sector/Complex Environment

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9. 9 TALKING POINTS Compare / contrast property vs. transit � goods moving Terms of Sale Admitted / Non-admittedTALKING POINTS Compare / contrast property vs. transit � goods moving Terms of Sale Admitted / Non-admitted

10. 10 TALKING POINTS Increased regulation creates additional need for corporate governance / SOX / Solvency II Taxes There are more than 195 countries in the world � BUT more than 250 insurance regulatory statutes or supervisory laws!TALKING POINTS Increased regulation creates additional need for corporate governance / SOX / Solvency II Taxes There are more than 195 countries in the world � BUT more than 250 insurance regulatory statutes or supervisory laws!

11. 11 Complex Environment

12. 12 Implications of Non-Compliance

13. 13 Possible Solutions Centralized Approach Establish centrally controlled / coordinated Risk Management philosophy Establish centrally controlled / coordinated Master Program with local admitted cover Pool local policies via reinsurance Integrate Captive if required Decentralized Approach Obtain standalone insurance coverage locally Buy separate DIC/DIL cover at central level, where allowed Employ local decision-making

14. 14 Summary International trade will continue to grow Trade is global � regulations are local Complex global regulations require a team approach Each client is unique and requires customized solutions

15. 15 Discussion Topics Overview from a Cargo Perspective John Barnwell, Allianz Global Corporate & Specialty Theoretical and Practical Considerations Bruce Eberly and Bruce Wineman, Aon Global

16. 16 Why is this Important Now? Corporate governance Increased awareness by regulatory authorities Tax issues Program administration Reputational risk Contract/Vendor requirements

17. 17 Compliance Concerns Regulatory: Laws are not objective � particularly for global firms Solutions may be expensive Penalties Tax: Responsibility Process for payment under global program structures Materiality Logistical: Cost Resources Administration, including allocations

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20. 20 Compliance Framework To design unique and effective solutions we need to understand your risk exposures. To understand your risk exposures, we need to understand the industry sectors that fit your business model. Are we a market leader in your sector? YES! Aon has a leading worldwide market penetration into the communication and media sectors. We are core account brokers (PD/BI/and or GT/E&O) to the clients on the slide. Firstly in your traditional business segment, In �new wave� business sectors, To design unique and effective solutions we need to understand your risk exposures. To understand your risk exposures, we need to understand the industry sectors that fit your business model. Are we a market leader in your sector? YES! Aon has a leading worldwide market penetration into the communication and media sectors. We are core account brokers (PD/BI/and or GT/E&O) to the clients on the slide. Firstly in your traditional business segment, In �new wave� business sectors,

21. 21 Multiple Stakeholders Insurer Broker Insured: Risk Management Senior Management Tax Legal Finance Business Development Purchasing Field

22. 22 Program Optimization

23. 23 Available Tools AXCO Lloyd�s Crystal Advisen Insurance Services Network: www.isn-inc.com AIMU www.aimu.org

24. 24 AXCO � Summary Market Reports

25. 25 Lloyd�s - Crystal

26. 26 Compliance Case Study - Brazil Situation - Brazil: Global Tech firm with assembly operations in Brazil Parts imported, assembled & the finished product exported. Brazilian cargo premium exceeds entire global cargo program premium Firm needs to reduce costs Possible Solutions: Cover Brazil under Global Cargo Program Set up admitted underlier to Global Cargo Program Pretend to Self-Insure but really cover under Global Program�after all, Import Insurance is no longer compulsory Export Insurance isn�t compulsory so self-insure Result: �We�re screwed�but at least we know why�

27. 27 Summary Theoretical, but becoming more realistic Each company will have different risk tolerance Pragmatic process for identifying and managing Compliance risk Solutions will continue to develop

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