IIFA Seminar Thursday 21 st October 2010 Dublin

1. IIFA SeminarThursday 21st October 2010Dublin

2. Marine Insurance • Dynamics and challenges in the (insurance) market • Trade & Insurance markets • Trade Facilitate & Starr Marine partnership • On line Trade Facilitate applications

3. Global Marine Insurance Market Total Reported: 22,9billion USD Total Estimated: 23,6billion USD Source: IUMI 2010

4. Dynamics of the insurance market • 21st Century • Technology and global trade • Technology and Insurers • An acronym? • Opportunities • Globalisation • Trade • Services • FOS – Freedom of Services • Lloyd’s Franchise board

5. Nature of the marine insurance market • ‘To follow’ principle • Trade • Needs • Inherent part of many trade transactions: • Contract of • Sale • Carriage/transport • Credit (LC/structured/...) • Insurance • INCOTERMS • Innovation

6. Nature of the marine insurance market • Sensitive • Trade shocks • Seaborn trade contracted -4,5% in 2009 • Container shipping -9,4% in 2009 • Freight rates • Baltic Tanker freight index • Dry cargo freight rate index SourceUNCTAD

7. Challenges of the market • Cargo: • Reduction in insured values • Upwards adjustments of 07/08 claims reserves • Profitability • Hull • Loss for 14 consecutive years • Off Shore Energy • Volatile

8. Challenges of the market • Regulatory • Compliance • Trade restrictions • Sanction regimes • Solvency II • Transparency • Performance & efficiency

9. Solvency II • Revised solvency regime for EU (re)insurers • Implementation of solvency requirements • Improved reflection of the risk • Consistent supervisory system EU • Requirements for • Capital adequacy & risk management • Reduction likelihood of failing (re)insurer

10. Trade Facilitate & Starr Marine partnership How to manage the challenges? • Innovation • ‘Must have’ • Service Industry = facilitating role • Insurance is never a client’s core business • Define values/benefits & key differentiators • Time • Accuracy and efficiency • Cost saving • Performance • Growth

11. Trade Facilitate & Starr Marine partnership • How? • Smart • Use of technology • Improved service • Simple • Quick win • Strong partners • Field Experience • Standing reputation • Thinking ahead • People • Advise and assist • From constraints to opportunities

12. Insurance application • Why Cargo insurance? • Capital at risk • Unforeseen element • Ultimate requirement • Title/holder of the insurance certificate • No liability constraints • Limitation of (carriers) liabilities • Hague visby / Rotterdam • Warshau • Short tail • Financial burden for undamaged cargo: • GA contributions

13. Insurance application • Accredited Members • On line • A few clicks away • Transactional or Structured • Personal designed program • Easy acces to highest security • Lloyds A+ • Instant delivery • Pdf secured and unique certificate • Electronic negotiable document • On line claims notification • Immediate acces to local surveyor

14. Conclusion • Marine Insurance not always on the shopping list • Differentiator • Premium service • Financial security • Keep it simple

15. Company information

16. Starr Underwriting Agencies, LLC • Starr Underwriting Agencies, LLC (SUAL) is a wholly owned subsidiary of CV Starr and the parent company of the Starr Underwriting Agencies • The Starr Underwriting Agencies: • C.V. Starr & Co. (C.V. Starr) • Starr Aviation Agency, Inc. (Starr Aviation) • Starr Global Accident & Health Insurance Agency, LLC (Starr Global) • Starr Marine Agency, Inc. (Starr Marine) • Starr Specialty Lines Insurance Agency, LLC (Starr Specialty) • Starr Technical Risk Agency, Inc. (Starr Tech)

17. Starr Underwriting Agencies, LLC • Internationally, the Starr Underwriting Agencies operate as divisions of: • Starr Underwriting Agents Limited • Starr Underwriting Agents (Asia) Limited • The Starr Underwriting Agencies are projecting to produce approximately $2.1b in gross premiums in 2009 and expect to employ more than 700 people globally • The Starr Underwriting Agencies have decades of experience in managing complex risks

18. The Starr Underwriting Agencies Distribution Network Locations

19. Starr Marine • Formerly known as the American International Marine Agency. • Founded in 1945; • Worldwide underwriter of Ocean Marine business and exclusive Managing General Agent (MGA) for the AIG group of Companies for over 60 years. • In 2006 our agreement with AIG ended and the entire underwriting, accounting, loss control and systems team at AIMA moved as one to what is now Starr Marine Agency Inc.. • In July of 2006 we announced the formation of our new partnership with the Berkshire Hathaway Group of Companies as their MGA for Ocean marine business. • In October of 2006 we opened our first office overseas and Syndicate 1919 began writing business at Lloyds.

20. Starr Marine (continued) • In November of 2006 American International Marine Agency announced our name change to Starr Marine Agency, Inc.. • In 2007 we opened an office in Hong Kong and further expanded into Beijing and Shanghai. • In 2008 we opened offices in Belgium, The Netherlands, Italy and Germany and we have plans for further expansion in the near future. • We continue to write, as we have throughout our history, a full compliment of Ocean Marine Coverage’s - Cargo, Hull / P&I and a variety of primary & excess liability covers. • Agency services also include claims management, subrogation, loss control & accounting.