Chubb Multinational Solutions

February 2011

Disclaimer

The information in this presentation is provided for illustrative and general information purposes only. The material presented is not, nor does it purport to be, a complete or exhaustive analysis of legal liability exposures or risks. The availability of insurance coverage depends on the particular facts and circumstances of any claim and the language of the policy as issued. Advice with respect to particular insurance needs or actual or potential legal liability must be obtained from your insurance broker or your lawyer. Actual breed of mite which caused loss may not be as pictured.

Recent Headlines

The New York Times:Only 40% of American Companies have any type of

Travel Risk Management Program

Foreign Trade Council and World at Work:

64% of worldwide travelers develop some illness abroad and 1 in 30 travelers may require emergency care while traveling abroad.

The Economist:Kidnapping is on the rise around the world, largely

led by political unrest.

Agenda

Introduction Capabilities Admitted vs. Non-Admitted Who needs “multinational insurance”? New Global Extension International Auto Foreign Voluntary Worker’s Comp International D&O Kidnap & Random Conclusion

Chubb’s Global Network

Branch Offices in 29 countries

Affiliate relationships with 120 insurance companies in 100 countries.

Correspondent broker relationships in over 60 countries

Local underwriters, claims analysts, and loss control experts in more than 120 offices

Correspondent Broker Services 100+ independent, full-service, multilingual agents Situated around the globe with ability to provide

information on local market requirements Provide international experience and local presence Act on instructions from controlling agent

Proactive Loss Control

25% of Chubb’s loss control risk engineers are located outside North America

Leading edge of jurisdictional emerging issues and trends

Well-versed in local laws, regulatory requirements, building codes and international standards

Provided at no cost to the insured

Admitted vs. Non-AdmittedAdmitted Coverage Non-Admitted Coverage

Written and issued by a company licensed to do business in the country where the risk is domiciled.

Country laws and legislation specify whether admitted insurance is a requirement.

In most foreign countries, premiums for admitted policies are tax deductible, and loss payments on local policies are considered non-taxable events.

Provides local certificates of insurance.

Gives insureds access to existing terrorism or cat pools (e.g. Cat Nat in France, Consorcio in Spain, and Pool Re in the UK).

May be more expensive.

Ability to allow insurer to subrogate.

Issued by a company not licensed to do business where the risk is located.

May be cost-effective.

Absolute control in the design of the policy and coverage terms.

Accelerated program implementation.

However: No access to government pools

Penalties of non-compliance may include monetary fines

Jail time related to non-admitted insurance in various third world countries has been reported (e.g. China)

MasterKey Global Extension

Easy-to-apply policy endorsement that can be used with multiple liability product platforms

Advancements or Reimbursements

DIL/Excess and DIC Collectibility provision Currency provision

Key Selling Points

Flexible rates that reflect unique legal and/or social climate

Fills gaps left by domestic-only policies

Provides a separate tower of liability limits

Protects the insured’s distribution network

Advances funds for defense

Loss Scenario – Foreign GL

Our insured stored food products at a public warehouse in Rotterdam, Holland. The warehouse owner reported that there was an infestation of mites at the location caused by contaminated product that our insured placed in the storage facility.

Because of the infestation, all outgoing shipments were blocked by the owner.

Chubb claims determined that our insured’s product was the cause of the infestation and the claim settled for slightly less than $300,000 to pay for the infestation to other stored goods.

Who Needs Multinational Insurance? Clients who generate

any revenues from sources outside Canada

Clients with employees traveling outside Canada

Clients with fixed assets outside Canada

International Automobile Coverage DIC and Excess Liability

insurance up to $1,000,000 Requires that compulsory

automobile insurance be purchased locally

No compulsory self-insured liability retention required

Broad definition of covered automobiles

Loss Scenario – International Auto

While visiting Ireland on a business trip, our insured borrowed a car from a colleague. While driving, our insured hit a house and killed a man.

The owner’s local policy declined the claim due to poor maintenance of the auto – the tire treads were too low.

Total loss exceeded $200,000.

Foreign Voluntary Workers Comp Bodily injury by accident or

disease in the course of temporary foreign employment

Primary coverage provided for employees on a 24 hour basis

MEDEX travel assistance services included

No war or terrorism exclusion

MEDEX Services Worldwide medical referrals Emergency medical evacuations Repatriation Assistance with the coordination

of rehabilitation after an evacuation

Arrangement of emergency medication, blood & vaccine transfers

Continuous updates to family, home physician &/or employer when appropriate

Loss Scenario – FVWC

A U.S. Employee for a communications firm was in London, England for a business trip. While walking down the street, and not being familiar with the surroundings, the employee was looking in the wrong direction when hit by a bus.

The employee received immediate care and Chubb Claims set a reserve of $700,000.

Admitted D&O Coverage

Locally issued limits up to $5M Canadian-issued policy acts as

a “global umbrella” sitting over the local underlying coverages

Aggregated deductibles and limits are available, where permitted

DIC/DIL cover fills potential coverage gaps

Why a Multinational D & O Policy? Regulatory enforcements

of admitted requirements are on the rise

Executives sitting on international subsidiary boards require adequate protection

Canadian/US policy terms not always tailored for lawsuits brought abroad

Kidnap/Ransom and Extortion Insurance

Financial protection in the event an organization suffers a kidnapping or other extortion loss.

Insurance provided for: Fees for independent

negotiators Rewards paid to informants Salary continuation Reasonable medical

expenses

Loss Scenario

The owner of a family-run business was abducted while traveling overseas. The kidnappers demanded a $3 million ransom payment. A security consulting firm was immediately called in to deal with the situation.

The consultants negotiated a ransom of $625,000, delivered the payment, and recovered the victim unharmed. Total Loss was $675,000

Top Five Reasons to Choose Chubb1. Collectibility Provision

2. Coinsurance Deficiency Up to Full Policy Limits

3. Foreign Voluntary Workers Compensation Insurance

4. Worldwide Services

5. Correspondent Broker Services