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Political Violence in the MENA Region -Implications for Insurance Coverage and

Future Developments

Richard Halstead

Hiscox

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Agenda

Hiscox - Key Facts

Strengths of the Hiscox Political Violence Team

MENA Unrest, why now?

Civil Unrest a growing trend?

Egypt A case study

A Problem of definitions

Lessons learned

The solution

Questions?

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Hiscox Key Facts

Hiscox is an international specialist insurer and reinsurer with areputation for integrity and quality

We are not a mass producer of insurance policies but focus on key

areas of expertise and strength

Origins dating back to 1901 at Lloyds

FTSE 250 company, head-quartered in Bermuda

2010 Gross Written Premiums 1.432bn

Underwriting a wide range of business and personal risks

Over 30 offices in 13 countries Financial Strength

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Hiscox Political Violence Team

Capacity / Securi ty

Maximum Line - USD 100m

Financial Strength

Expertise & Appetite

Over 25 years experience

Lead 75% of r isks Knowledge of emerging

markets where companiesare investing

Exceptional Levels of Service

Swift and knowledgeableservicing essential

Empowered underwriters

Claims, our Shop Window

Willingness and Ability to Travel

Understanding clients

Understanding local issues

Control Risks

Leading specialist internationalbusiness risk consultancy

Their technical expertise and adviceprovide great support to our cl ients inthe event of a crisis

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MENA Unrest, Why Now?

STRUCTURAL CONTINGENT

FOOD PRICES

POPULATION GROWTH

YOUTH BULGE

(YOUTH) UNEMPLOYMENT

INFORMATION

ENERGY PRICES

PSYCHOLOGY

ELECTIONSDYNASTIC SUCCESSION

AUSTERITY

GOVERNANCE

GLOBALISATION

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MENA Unrest

SIGNIFICANT UNREST / VIOLENCE

Tunisia

Egypt

Libya

Syria

Yemen

DISTURBANCES / ASSOCIATED UNREST

Bahrain

Algeria

J ordan

Morocco

Saudi Arabia

Israeli Borders

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Civil Unrest - A growing trend?

THAILAND 2010: $500M-$1BN

TUNISIA 2011: $150M

EGYPT 2011: $200M

LONDON 2011: $150M - $250M

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Egypt Case Study

Riots, Strikes, Civil Commotion Uprising / Insurrection Revolution

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A Problem of Definitions...

1: Civil Commotion a substantial disturbance of the

public peace by three or more persons assembledtogether acting with common intent

2: Insurrection a violent uprising of citizens in

resistance to their government

3: Revolution the overthrow of a regime or politicalsystem by its citizens

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Lessons Learned

Focussed on cities

Target locations: Retail, Government Buildings, ConsumerGoods, Banks, Hotels Street Front Exposure

Fluid process including: Loot ing / Riots / Strikes / Protests / Civil

disobedience Proximate cause?

Questions over cover under property policies

LMA3030 Terrorism policy: exclusionary language clear

civil commotion assuming the proportions of or amounting to an

uprising.

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The solution...

Hiscox PV Cover

Terrorism and/or sabotage

Malicious damage

Riots, Strikes, Civil Commotion

Invasion

Rebellion

Revolution

Coup detat

Insurrection

Mutiny

Civi l war

War

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Any questions?