I.I.I. Strategy 2017+ Communicate – Collaborate – Build

1. I.I.I. Strategy 2017+ Communicate – Collaborate – Build Board of Directors Meeting January 17, 2017 Sean Kevelighan, Chief Executive Officer Insurance Information Institute  110 William Street  New York, NY 10038 212.346.5520  seank@iii.org  www.iii.org

2. Agenda • CEO Five Month Review • Strategy 2017+ • Structure and People • Next Steps and Timing • Board Vote

3. CEO Five Month Review

4. “360” Feedback Input: Extensive Research QUALITATIVE 231 Sean K. Meetings • 1:1’s, town hall, team weeklies, senior leadership, etc. I.I.I. Team MemberCompanies • CEOs, Communications / Public AffairsHeads, General Counsels, etc. • Media, Consultants (McKinsey), Service Providers (Verisk, Advisen), Academics (Wharton), etc. AffiliatedOrganizations TradeAssociations • CEO 1:1’s, member gatherings, presentations, etc. • WSJ, A.M. Best, Insurance Journal, Money Matters, Best Week’s Media QUANTITATIVE MembershipSurvey • What do you find most useful about your membership in the I.I.I.? (You can select more than one.) • 60% Access to Thought Leadership • 61% Access to Communications Resources • 66.67% Role as Defender of the Industry Surveys Sent Respondents (15%)

5. “360” Feedback Output: What’s working; where can we improve? Voice of the Industry Catastrophe Response Objective Research “Convene Us” Trade Association & Think Tank Board Input Industry Insight Governance Industry Advocate Economist(s) Team? vs. Team! Collaborative 100+ Slides In 15 mins–Less is More… Prioritization (Social) Media & Communications Responsive Media Relations Fact-Based Testimony Air Cover “Switzerland on Policy Matters”

6. I.I.I. Strengths & Opportunities Leverage foundation from past; build successful future Strengths Opportunities • Strong history of communications • Trusted “neutral” advocate • Responsive • Research / Information Aggregation & Synthesis • Industry perception change among key stakeholders outside the industry • Customers, Policymakers, Media, Relevant Experts • Industry collaboration • I.I.I. as “Voice of the Industry” • Message cohesiveness • Organizational governance

7. Strategy 2017+ Communicate Collaborate Build

8. I.I.I. Mission Statement Simple and succinct; and should stay that way… Improving public understanding of insurance... …what it does and how it works 8

9. Strategy Communicate Collaborate Build • Be the trusted “voice of the industry” • Enhance management and governance to create operational excellence, and develop areas for future growth • Help industry work together on key issues areas (where it makes sense to change public perception)

10. Key Stakeholders Will help us reach our objective – deliver on our mission Consumers RelevantExperts Industry • Personal • Commercial • Carriers • Trade Associations and Institutes • Intermediaries • Service Providers • Legislators • Regulators • Judicial • Administration(s) • Traditional • Nontraditional • Social • Academia • Think Tanks • NGOs Media Policymakers

11. “Surround Sound” Approach Consumers Consumers RelevantExperts RelevantExperts Industry Industry Media Media Policymakers Policymakers Public Affairs Channels Messaging & Engagement

12. External Relations Driving positive perception of industry to consumers and other key stakeholders Thought Leadership Issue Management • Proactive “public service” issue campaigns that illustrate how the industry drives societal value • Insurance as economic growth facilitator • Talent • Resilience • Digitalization of the industry • Road safety / Distracted driving • Proactive and reactive measures to address industry trends and/or regular news cycles • Cyclical trends, e.g. costs of auto insurance • Catastrophe / Emergency / Crisis • Day-to-day responsiveness

13. Public Service Issue Campaigns – Example Attracting the Next Generation of Talent to Insurance • Concept: Drive a national campaign targeting college graduates that individual insurers can leverage in their own recruitment initiatives • Focus: Connect industry career attributes to millennials’ most desired work-life attributes: collaboration; social impact; diversity; growth; global opportunities 13

14. Public Service Issue Campaigns – Overview Objective • Develop a series of collaborative public affairs campaigns to lead the public narrative on the macro-level forces impacting the insurance industry Potential Topics • Attracting the next generation of talent and skills to insurance • Showcasing the benefits of the digital era for consumers • Documenting insurers’ role in supporting economic growth • Highlighting the importance of resilience to natural catastrophes • Promoting road safety Desired Benefits • Increased public awareness; behavior change • Support of member company/industry trade initiatives Potential Tactics • Develop compelling personality for campaign through spokesperson, storytelling, visual devices • Promote campaign through digital activation, public service announcements, event production, media outreach, paid content • Package campaign elements for use by individual insurers (e.g. coordinated events, collateral, messaging, visuals)

15. Industry Relations:Regular Insights Touchpoints Provide value-add services to maintain membership Regular Insights Touchpoints Regular Insights Touchpoints • The I.I.I. Daily • Monthly CEO Update • Membership Issue Updates • Quarterly “Snapshot” • “I.I.I.-Insight” webinars • Events / Meetings / Presentations / On-Site visits • Research and Education • Econometric model of P/C industry 15

16. Industry Relations: Membership Development Provide value-add services to grow membership ValuePropositions StrategicAlliances ResearchCuration StrategicAdvisory Services I.I.I. FoundationEstablishment • Public / private grant eligibility • Tax incentives • Supporting organization for I.I.I. charitable, research and education initiatives • Commercial, Personal, Associates • Member & Subscriber services • Attrition loop • Service providers – Verisk/ISO, Advisen • Associations – TMPAA, Geneva Assoc. • Timely thought leadership • Enriched life/annuity materials • Responsive research • Media training • Social media toolkit / roadmap • Communications counsel / planning

17. Operational Excellence Drive high performing culture through best-in-class management and governance • Bylaws and Board Governance Re-Vamp • HR and Talent Development • Compensation review • Structure realignment and title review • Succession planning • Team calibration • Rating and accountability process • Budgeting, Finance and Administration • Procurement processes • IT management • HR and benefits policies 17

18. Organizational Governance Re-Vamp Best-in-class infrastructure, procedures and processes * Processes by which committees are established and filled will be undertaken once strategy is approved, and then will be presented for June 2018 meeting. Why Now? Key Changes • I.I.I. has not reviewed its governance structure since 2007 • Nonprofits Revitalization Act of 2013 imposed new governance requirements • Member/Board feedback • Expansion of membership industry and class of membership • Incorporates life (70% of I.I.I. members offer life insurance) • Expands potential non-voting associate members, e.g. intermediaries, service providers • Re-organization of Board and Committees • Establishes Vice Chair • Reduces board size from >30 to ≤30 • Creates Finance, Audit, Nominating committees* • Addition of conflict of interest and whistleblower policies • Adheres to State of New York non-profit law

19. Structural Realignment Four primary departments with critical interdependency *Andréa Basora maintains “second in command” role for organizational strategy and decision-making Industry Engagement Marketing and Communications Research and Education Finance and Administration Jeanne Salvatore Andréa Basora* James Lynch and Steven Weisbart Parmila Phillips • Develop research and content to support strategic priorities, and educate key stakeholders • Provide industry insight and analysis • Facilitate strategic alliances with relevant experts, i.e. academia, think tanks, government agencies • Institute cross-organizational processes and procedures / best practices • Ensure compliance / governance • Enhance technology to amplify operational efficiencies and cost containment • Cultivate and deepen member relationships • Expand associate membership • Engage I.I.I. stakeholders in event driven platforms • Promote I.I.I. products and services through inter-industry engagement • Establish a proactive campaign-oriented communications mindset • Refine content strategy to improve outreach • Anticipate key issues through careful trend monitoring and analytics

20. Next Steps and Timing Develop, execute, measure JANUARY 17 Board Review and Approval • WEEK OF JANUARY 23 • Board Prioritization • Electronic vote • (Q1/2 2017) • Department-level Tactical Plan Development and Implementation • Bylaws implementation • Establish committees and mandates • Priority campaigns – planning and development • PR agency support • Inclusion of metrics/KPIs • JUNE 2017 • Midyear Review • Campaigns plan review • Committees report outs • Budget review / approval • (2017-2020) • Financial Growth Plan Development Implementation • Membership retention and growth • Cost containment • Additional revenue generation • Stringent plan accountability • JANUARY 2018-2020 • Year-End Reviews • Campaigns – progress review • Annual budget / financial outlook and review