SATISFYING CLIENTS - Profit Opportunities and Profit Opportunities and Value Added ProductsValue Added Products

National Conference ALB Non-Financial Institutions III-rd Edition

Dr. Alexandru Peligrad

October 2007

Marsh 2

55.000 EmployeesPresent in over 100 countryTurnover: 12 billion USD

MMC Group

Marsh 3

A beneficial allianceA beneficial alliance

With fast developing markets and increased demand from clients,

Marsh have over the last few years developed many programs which:

– Create additional profit opportunities

– Provide marketing tools

– Increase clients retention

– Increase clients loyalty

– Deliver benefits with high perceived client value

Marsh 4

Added value products

Insurance products distributed for private individuals thought

leasing companies or associations with an affinity to

common interest groups for the scope of satisfying clients

needs and differentiate from the competition.

Marsh 5

Specialist Range of Products

1. GAP PRODUCTS

2. EXTENDED WARRANTY

3. CREDIT LIFE INSURANCE (PAYMENT PROTECTION)

4. TYRE INSURANCE

5. KEY PROTECTION

6. MOTOR INSURANCE (CASCO, MTPL)

Marsh 6

1. GAP(1) - Finance

Covers the difference between the booked value of the insured vehicle filed by the leasing company (owner of the vehicle) and the general vehicle value calculated by the primary insurer in the event of total loss or theft, for 5 years.

Marsh 7

Benefits

protect the client against the debts with the leasing company

protect the leasing company against the finacial loss stemming from the insufficient primary insurance settlement which doesn’t cover the loss up to the insured vehicle booked value.

Marsh 8

GAP (2) - “Back to invoice value”

50 000 EUR

40 000 EUR

30 000 EUR

20 000 EUR

10 000 EUR

GAP 2

Covers the difference between the current value / price paid for the vehicle and the general vehicle value calculated by the primary insurer (CASCO) in the event of total loss or theft, for 3 years.

Vehicle purchase price

Marsh 9

Benefits

Full financial protection for 3 years at the level of purchasing price, i.e. no worries with regard to theft or total damage or nature disaster

Enough financial resources to buy an equivalent value car ... 100% insurance claim

Easily understandable terms and conditions of the contract

Marsh 10

2. Extended Warranty

Covers any sudden mechanical or electrical failure inconsistent with normal usage and component life, (excluding general wear and tear or accident damage) after the manufacturer’s warranty expired.

Extended warranty period: 6 months up to 5 years.

Types: Optional or Mandatory

Applicable for: vehicles and equipments new and second hand

Marsh 11

Benefits to the client

Clients do not have to budget for mechanical/electrical failures or their next service

Vehicle residual value is increased

100% insured

The vehicle is more cost efficient to run as all preventative maintenance is done.

Vehicle is more reliable as genuine parts are used and fitted by fully trained technicians.

Marsh 12

Benefits to the leasing company

Competitive advantage

Clients more likely to pay installments, instead of paying for vehicle problems

Vehicles are maintained with no mechanical or electrical defects

Additional income – sales commission

You will be the dealers 1st choice for finance as the warranty will increase their parts and service revenue for the dealers workshops and locks in the clients for a longer period

Marsh 13

Extended Warranty web system

Marsh 14

3. Credit Life Insurance (Payment Protection Insurance)

Protects the leasing clients against potential debts with the leasing company in the unexpected cases of sickness, injury, accidental death or unemployment during the period of the lease contract

Cover: Life, accident (temporary and permanent), sickness, unemployment, critical illness

Options: - LAS (life, accident, sickness)

LASU (life, accident, sickness, unemployment)

Critical Illness

Marsh 15

Life cover

Benefits:

– In the event of death, the Insurer pays the outstanding balance, including any residual/balloon, up to a limit of ….EUR.

Marsh 16

Critical Illness

Benefits:

Pays the outstanding, up to a maximum benefit of …………EUR, in the event of contracting/suffering one of the following conditions:

- Kidney Failure- Heart Attack- Coronary Artery Bypass- Stroke- Major Organ Failure- Cancer

Marsh 17

Accident / Sickness

Benefits:

Disability pays one full monthly payment after 14 consecutive days off work (starting from the date you first saw your doctor)

Therefore, further monthly payments are covered every further 30 days until return to work or the loan has been repaid in full

Marsh 18

Involuntary Unemployment

Benefits:

– Pays the full monthly payment after 30 consecutive days of unemployment

– Further payments are made ever 30 days until return to work or 6 payments have been made in any one claim

– Subsequent Unemployment claims can be met once a further 6 months of full time employment has been reached

Marsh 19

4. Tyre Insurance

Cover the clients when the tyre on their vehicle is accidentally damaged or punctured

BENEFITS TO THE CLIENT

In the event of accidental damage or puncture to a tyre, this policy will

reimburse the customer up to $60.00 per tyre after a $10.00 excess has

been deducted, as long as the tread depth exceeds 2mm at

time of claim.

INSURANCE PROVIDED

The cover is available for 1, 2 or 3 years. It covers the 5 tyres registered

at purchase, on vehicles up to 6 years old.

Marsh 20

5. Key Protection

Key Protection is based on a very simple idea that hundreds of

thousands of keys are lost or stolen every year and that the chance

of repatriation of these keys to the owner is less than 2%.

Cover:

- lost of key and car lock replacement

- 3 days car hire up to $25 per day inclusive VAT

Period of coverage: 1, 2, 3, 4 and 5 years

Marsh 21

6. Motor Insurance (CASCO & MTPL)

Benefits to the leasing company

– Additional income

– Certainty that all lease goods are insured

– Terms and conditions tailored made

– Externalization for policy administration and installments payment

– Possibility to obtain regular analysis and information on-line in real time

– Claims assistance

Benefits to the client

– Competitive quotes

– Possibility to chose between different Insurers

– Efficiency in policy administration

– Claims assistance

Marsh 22

Activity steps

Leasing Company

Marsh Insurer

•Policies Administration

•Claims handling

•Information Management

Administration

Consultancy

Training

•Person trainin

•Branch training

•Product training

•Product development

•Product placement

•Offers negotiation

•Offers assessment

•Terms and conditions negotiation

Marsh 23

Contact Details

Marsh Broker de Asigurare – Reasigurare

Sos. Nordului 24-26, Sector 1, Bucharest

Tel: +40 21 2321874

Fax: +40 21 2322102

E-mail: alexandru.peligrad@marsh.com

www.marsh.ro / www.marsh.com