Swiss - Global HR Executive Workshop Martin Bühler, Managing Partner, expatpartners ag

1. International Medical Insurance Tender on the basis of a concrete example: Julius Bär Singapore Renewal on January 1, 2009 Swiss - Global HR Executive Workshop Martin Bühler, Managing Partner, expatpartners ag Geneva, 15 September 2009

2. Julius Baer’s Story Started in 1890 1890 2007 Julius Baer Group Founded1890 First Foreign Subsidiary Opened1940 IPO on SWX1980 Share Unification2005 SBC Acquisition 2005 Creating the largest pure wealth manager Julius Baer, 1857-1922

3. expatpartnersag is a firm of independent insurance consultants. • Public limited company. • Domiciled in Zurich, Switzerland. • We deal exclusively with international employee benefits. Mainfocus on insurancesolutionsfor mobile employees. • We support companies and their mobile employees – Expatriates, Third Country Nationals, Assignees, Local Foreign Employees, Key Local Nationals, Trainees and Frequent Travelers – in finding the best possible insurance solutions. • Consulting and brokerage services (depending on the client’s request). • Licensed by the Swiss Government to provide insurance brokerage and consulting services. • www.expatpartners.ch

4. Excecutive Summary • Benefits review • As part of the employee benefits insurance renewal exercise, Compensation & Benefits Department of Julius Bär (C&B) reviewed the current health care policy and benchmarked it against other providers. • Role of expatpartnersag • Due to its in-depth knowledge about the international medical insurance market, expatpartners acted in an advisory capacity. • Actions taken • C&B visited four insurance companies during a field trip and decided to put JB’s international medical plan out to tender for the local employee population in Singapore. Visited the following local and international medical insurance companies: • AIG, AXA Insurance, DKV and Vanbreda. Current provider: CIGNA.

5. Tender procedure – Actions to take Determination of the tender criteria (benefits, services, pricing model). Preparation of the tender documents. Decision which insurance companies to invite. Tender/Bidding, i.e. dispatch of the documents to the participating insurers; questions to answer; coordination with the participating insurers; price negotiations, etc. Analysis of the submitted offers (price / service / benefit comparison). Creation of a summary document (pricing, service factors, differentiating factors). Presentation of the analysis / results. If required: 2nd round of negotiations / organization of a “beauty parade” (invitation of the selected insurers in order to present their offers). Selection / decision.

6. Reasons why to opt for an international medical plan for local foreign employees in Singapore • International cover enables the local overseas employees (mainly European citizens) to receive treatment in their home countries in case of a more severe incident. • To provide continuous, comprehensive health care benefits for those whose employment takes them to another country during their international career with Julius Baer. • Julius Baer have the guarantee that all local foreign hires have a comprehensive coverage (no lack of cover). • No disparities - every eligible employee has the same level of coverage which will avoid conflicts. • Cost advantages for the Bank (economies of scale), but also for the employees (instead of having individual insurance solutions). • Easy and effective administration for the employees (focus on the job and not on administrative issues).

7. Julius Bär Singapore tender requirements • A comprehensive product offer. • Experience and reputation in the international medical insurance market. • Local expertise in Asia/Pacific including a large provider network in Singapore. • Regional claims centre and point of contact (same time zone). • Easy and effective administration (claims handling) for the employees (fundamental condition). • Cost-effectiveness including a certain premium stability for the future. • Swiss continuation option (if possible). • Implementation support.

8. Service offer of the leading health insurance providers – • Employee’s perspective (criteria to be fulfilled) • Private medical insurance, i.e. free choice of hospitals and doctors, private ward.   • No medical underwriting: no exclusions, no waiting periods, no premium loadings. • Easy and flexible claims reimbursement process. • Multilingual 24 hour helpline, e-mail access to customer services team. • Member website incl. access to global provider network, country information, claims information (reimbursement status), etc.   • Large provider network mainly in Singapore, but also in the rest of the world (direct payment agreements).   • Medical Assistance: evacuation/repatriation, country guides, alarm centers, etc.   • For employees leaving the group plan: continuation option (no medical underwriting) with an individual product (if possible “in-house”). • For employees returning to Switzerland: continuation option.

9. Service offer of the leading health insurance providers – • Employer’s perspective (criteria to be fulfilled) • Medical insurer with proven experience in Singapore.                  • Dedicated account manager. • Coverage for all nationalities (no restrictions). • Comprehensive cover and flexible benefit design. • Professional reporting capabilities, e.g. claims report, membership lists, etc.     • Flexibility on invoicing processes (billing to subgroups possible). • Alliances with domestic insurance companies and/or local provider networks.   • Continuation option for employee’s leaving the Bank or returning to their home country.

10. Leading providers in this very dynamic market(providers with • a substantial book of business with multinational companies and/or international organisations) • CIGNA International: Probably the largest provider for corporate expat medical insurance solutions. Leading provider in Switzerland. Comprehensive service offer. • Allianz Worldwide Care: Grew considerably over the last years (very dynamic). Has got a large book of business with corporations (mainly in Europe). • BUPA/IHI: As largest local medical insurer (subsidiaries in many countries) they also have a substantial portfolio of international corporate clients. Not very active in CH. • DKV Globality: Relatively new in the expat medical insurance market, though already a large book of business mainly with German, Spanish and Benelux corporations. Benefits from the international network of its parent company “Munich Re”. • Vanbreda International: TPA provider. Largest provider in the international organization market and growing in the corporation sector. • GMC and Mobility Benefits: French TPAs. Large French portfolio and also a considerable number of group clients in the French part of CH.

11. Differentiating Factors (besides the costs) • Proven experience with clients of a similar size and in a similar industry • Service quality for both employer and employee (e.g. languagecapabilities) • Claims handling: Original invoices requested or claims by mail, fax or email accepted? • Claims handling: Anyhiddencostsfortheemployees? • Claims centers in different regions? • Treatment: Pre-authorisationnecessary? • Premium paymentfrequency? Surcharges? • Continuationoptions (international and Swiss) • Size of the provider networks / number of direct payment agreements (mainly in the countries/cities your expats are located). • Compliance • Flexibility of the provider (product range? Cover for local employees? etc.)

12. Short listofhealthinsurersinvitedtotender • CIGNA International: • Key advantages: Well known insurer in the expat community in Singapore, cooperation with a local hospital network in Singapore, very good service offer; well represented in Switzerland (e.g. continuation, etc.). • DKV Globality: • Key advantages: Local expertise in Singapore (and Asia) thanks to a regional claims center (in Bangkok and China); very comprehensive benefits; cost effective solution with a certain premium stability (premium guarantee for the first 2 years). • Vanbreda International: • Key advantages: Local expertise thanks to a local representative and a local claims center in Malaysia. Comprehensive plans and a very good reputation with regard to service quality.

13. Results of the tender • The winner of this tender was DKV/Globality. Reasons for this decision: • Local expertise with regional claims centers. • Large provider network in Singapore. • Very comprehensive benefits. • Low premium costs / cost advantages for the bank and the employees. • Premium guarantee for 2 years. • No set up cost. • DKV GLOBALITY provides global health insurance cover combined with local assistance services and local knowledge. • Important remark: • The outcome of this exercise would not necessarily be the same for other clients, as provider offers can vary considerably from case to case. Tender processes undertaken by expatpartners in the same year (particularly with regard to premium costs) resulted in different recommendations.

14. Julius Bär (C&B) Christian Frener +41 58 888 46 67 christian.frener@juliusbaer.com expatpartners ag Martin Bühler +41 44 280 68 68 mb@expatpartners.ch