The Impact of a Suboptimal Claim Correspondent Model on Financial Performance

1. Istanbul 7/4/2014 The costs of a suboptimal claim correspondent model

2. Agenda

3. Today’s trends

4. Today’s trends • Results are under pressure • Reduce head count • Decrease overhead costs • Challenging market • Commoditisation • Changing consumer demands • Legal framework shifting • Solvency II capital requirements • Reporting challenges

5. Research • Mapped approx. 100,000 correspondents • 2,000+ insurers and their correspondents in the 46 Green Card countries • Found 5 distinct correspondent setups • Benchmark • Correspondent setups • Costs levels and quality standards • Findings • 85% of insurers have a suboptimal correspondent model • savings could yield up to 50% of current costs

6. Correspondent setup By insurers • Multiple insurers (5%) • Reciprocity model (10%) By TPA’s • Multiple providers (60%) • Two providers (10%) • Single provider (15%)

7. Cost increasing in-house tasks • Safeguarding reserving policy • Data cleansing for reporting • Managing multiple providers • Auditing foreign files • Monitoring claim cycles

8. Cost drivers relating to correspondent setup

9. 40% 20% 10% Total savings per model 50% 30% SAVINGS

10. Reasons for savings

11. Reasons for savings • Bargaining power • Lower claim handling fees due to volume • In-house costs • High number of providers result in high transaction costs

12. Steps towards an improved way Reduction of the number of vendors to a single TPAgives: Improvement in process • Single instruction, less effort • Process alignment and optimisation Improvement in costs • Less in-house resources required • Lower correspondents’ fees

13. Results in Operational • Become more in control of foreign claims • Reduction in required vendor management effort • Reporting in required standard Financial • Decrease in total costs of foreign claims handling 30 – 50%

14. Why Van Ameyde • You should buy from us, because: • we can help you reduce your in-house workload; • whilst reducing the overall costs of those claims; • in line with your policies and claims strategy. • Which our competitors cannot bring you, due to • their limited geographical network; • IT capabilities; and • lower productivity and higher prices.

15. European Claim Handling Optimisation ECHO system

16. Network

17. Off-the-shelfintegration

18. About us…..

19. Van Ameyde First independent claims managers andadjustersestablished in 1945. Help over 2,500clientsachievetheir goals. Market leader • Over 1,000 motivated professionals • More than € 1.4 BNmanaged funds • Handle over 700,000 claims andincidentsannually Corporate Governance • ISAE 3402 • IFRS compliance • D&B tier 1 rating

20. Network • European Network62 offices in 43 countries • USA & rest of the World Complemented by Partners • Lines of businessMotor, Property, Liability, Accident & Health, Cargo, Hull, Machinery, Travel, etc.

21. Markets Corporates & industrialclients Insurers & brokers Governmentagencies Fleetowners P&I clubs & carriers Ports & terminals

22. Results

23. Thankyou! • Krzysztof Jablonski • Van AmeydePolskaBoardMember • Van Ameyde CEEManagingDirector • T: + 48 22 500 66 00 • M: + 48 50010 25 88 • E: krzysztof.jablonski@vanameyde.com