1. FOR PRODUCER USE ONLY Traveling Safely in Today’s Global Environment 2013 WBN Global Conference Employee Benefits Session

2. 2FOR PRODUCER USE ONLY Global Overview For today’s corporate travelers, the world is becoming a far more dangerous place, from increasing frequency of natural disasters, political unrest and terrorist incidents to a bewildering array of liability issues posed by “Duty of Care Legislation”. Now more then ever, risk managers are actively seeking stronger and more effective solutions to protect the health, safety and security of their travelers.

3. 3FOR PRODUCER USE ONLY Why Worry? UNPREDICTABLE RISKS CRIME & CORRUPTION UNKNOWNS Political Environmental Cultural Geographical Other DUTY OF CARE REGULATORY REQUIREMENTS INCREASING GLOBAL REQUIREMENTS INCREASED CORPORATE EXPOSURE REPUTATION LITIGATION LAWS Health Safety Privacy Other FINES & COMPENSATION

4. 4FOR PRODUCER USE ONLY Global Risk Landscape 2010  Chile earthquake  Iceland volcano eruption  Haiti earthquake  Northeast coast blizzards  Italian Embassy bombings  North Korea attacks  London, Paris & Rome riots  London bombings  NY Times Square bomber  Greece economic riots 2009  SARS  Air France Airbus A330 crash  Australian Jetstar A330 cockpit fire 2008  Mumbai bombings  Avian influenza 2005  Hurricane Katrina 2002  Bali explosions 2001  9/11 World Trade Center 2011  Japan earthquake, tsunami and nuclear risk  New Zealand earthquake  Egypt political unrest  Libya political unrest  Moscow Airport bombing  Australian floods  California fire, mudslides, earthquakes  American professor kidnapped in Mexico

5. 5FOR PRODUCER USE ONLY Managing Security When travelers are at risk, who will they call, what will they do? Employers need a plan that delivers insurance benefits integrated with a full range of security services and backed by leading-edge technology. Security Evacuation Benefit: Pays the covered expenses to take a traveler to the nearest place of safety. Return traveler to nearest place of safety 5 All benefits not available in all states. Please see policy for details.

6. 6FOR PRODUCER USE ONLY The Solution is Best Practice Understand potential liabilities and risks Ensure 24/7 assistance services Establish procedures for incident handling Mandate training Monitor world events Establish communication channels Utilize technology to locate employees

7. 7FOR PRODUCER USE ONLY Impact of Legislation Employer’s Duty & Obligation for Traveling Employees Defining a corporation’s “Duty of Care” Consequences if a corporation doesn’t fulfill their obligation

8. 8FOR PRODUCER USE ONLY Duty of Care Duty of Care – What and Why? A requirement that a corporation act toward employees and the public with watchfulness, attention, caution and prudence that a reasonable person in the circumstances would. If a corporation’s actions do not meet this standard of care, then the acts could be considered negligent, and any damages resulting may be claimed for negligence. Employers have a duty to protect their employees while traveling and an obligation for the health, safety and security of their employees

9. 9FOR PRODUCER USE ONLY Duty of Care Risk Management – Managing Human Capital Understand potential liabilities and risks Mandate travel training Monitor world events Real-time communication to employees Put appropriate procedures in place to proactively react to incidents (i.e. terrorism, kidnapping, etc.) Utilize travel-tracking software to know where your employees are at all times

10. 10FOR PRODUCER USE ONLY Duty of Care U.K. Corporate Manslaughter Act 1 Organization guilty of an offence if the way in which its activities are managed or organized causes a person’s death, and; amounts to a gross breach of a relevant duty of care owed by the organization to the deceased S.1(3) An organization is guilty … if the way in which its activities are managed or organized by its senior management is a substantial element in the breach referred to in subsection (1) U.S. Case — Wagner v. Samaritan’s Purse 2 10 1.United Kingdom Corporate Manslaughter and Corporate Homicide Act 2007 2.New York Southern District Court’s Electronic Filings (ECF) System. Wagner v. Samaritan’s Purse et al. Plaintiff - Flavia Wagner. Defendants – Samaritan’s Purse and Clayton Consultants, Inc. Filed: May 17, 2011 Case Number: 1:2011cv03775

11. 11FOR PRODUCER USE ONLY How to Mitigate Risk – Business Travel Insurance Look for a vertically integrated platform of coverage and services that gives employees support for nearly every travel need. EXAMPLE 1. Layers of travel protection and insurance Provide the tools for your travelers to (1) anticipate the unforeseen, with pre-trip info and advisories; (2) respond in the moment, with 24/7 assistance should things go awry during a trip; and (3) cover the risk, with insurance benefits to cover expenses. 2. One contact Set up a single point of contact were travelers receive 24-hour travel assistance services 3. Effective cost management No need to worry about hidden costs and fees. You know what you pay for upfront, with all the fully- insured benefits and services that meet your needs.

12. 12FOR PRODUCER USE ONLY Global Medical and Evacuation Program Medical tips and proactive measures – “Out of Country Medical Coverage” Medical evacuation process Types of evacuation methods and understanding when an air ambulance is required Repatriation of remains

13. 13FOR PRODUCER USE ONLY Out of Country Accident & Emergency Sickness Medical Coverage Based on a study of health problems experienced by 100,000 individuals who traveled to a developed country for one month, the following could be expected to occur: 50,000 will develop some health problem (1 in 2) 7,992 will see a doctor (1 in 13) 5,000 will be confined to a bed (1 in 20) 1,111 will be incapacitated in their work (1 in 90) 50 will be admitted to a hospital (1 in 2,000) 30 will be evacuated (1 in 3,300) 1 will die (1 in 100,000) 13 Source: Journal of Infectious Disease; “Health problems after travel to developing countries,” April 15, 2010

14. 14FOR PRODUCER USE ONLY Out of Country Accident & Emergency Sickness Medical Coverage Medical Insurance Coverage for International Travelers Out-of-Country Accident & Emergency Sickness Medical Coverage bridges helps insure complete insurance coverage for international travelers Many U.S. Major Medical Plans may not respond to illnesses suffered while traveling outside of the U.S. U.S. State Statutory Workers Compensation Act benefits will not respond to illnesses that are not related to work Many overseas national major medical plans may not fully respond to illnesses suffered while traveling outside of one’s home country, particularly with regard to private medical service 14

15. 15FOR PRODUCER USE ONLY Out of Country Medical Coverage Out of Country Medical Coverage Options Including or excluding pre-existing conditions Primary or excess coverage Range of deductible Co-insurance may or may not be required Coverage Options Payment Options Travel Assistance Credit Card Direct Bill to Claims Cash Transfer/Bank Wire Pay and File

16. 16FOR PRODUCER USE ONLY Travel Medical Assistance Travel Medical Assistance Service Options Arrange Special Medical Services Dispatch of Medical Specialists Medical Monitoring Bedside visitor arrangement Emergency prescription replacement Medical evacuation Physician/Hospital/Dental/Vision referrals

17. 17FOR PRODUCER USE ONLY Understanding Medical and Network Capabilities Medical support should include: Physicians Certified in Emergency Medicine In addition to other specialties RN’s/EMT-P’s All with Emergency/Critical Care backgrounds Some with Aero-Medical experience

18. 18FOR PRODUCER USE ONLY Preferred providers, strategically located Work with specific networks Air Ambulance Preferred hospitals Understanding Medical and Network Capabilities

19. 19FOR PRODUCER USE ONLY Medical Evacuation Process Example of Medical Evacuation Process Open Case  Name, location, contact, condition/situation Evacuation due to medical necessity  Access account profile in case management system  Patient & facility evaluation  Acuity of Condition  Adequacy of facility to treat condition Method of transport & destination determinations  En-route requirements, speed of transport, facility capabilities, political and other factors  Provider availability and selection  ETA to patient resources

20. 20FOR PRODUCER USE ONLY Air Ambulance Selection Criteria Request for services to 1-3 providers simultaneously Specific transport requirements outlined Aircraft type, crew configuration & availability Aircraft ETA to client Special equipment Itinerary (number of stops & where) ETD to destination Ground transportation requirements Provider responses evaluated based on overall ability to meet criteria Cost is last component to be considered

21. 21FOR PRODUCER USE ONLY 73 year old male with severe Community Acquired Pneumonia on left lung with concurrent heart failure Admitted into ICU incubated and on ventilator Primary health care coverage would not provide guarantee to international hospital Family required to pay medical expenses resulting in maxed out credit cards Treating physician stated it would be weeks before he could travel commercially and AA or PTC would be best option Preferably PTC as AA would stop too many times AA costs: ranging from $240,000 - $300,000 with 3-4 stops to refuel PTC costs: $142,000 including doctor, nurse and client’s wife who was able to sit in PTC unit Route: Bangkok to Frankfurt to Houston Transported to Houston and admitted into hospital for continued care Medical Case Study

22. 22FOR PRODUCER USE ONLY Examples of Additional Services of a Business Travel Program Worldwide travel assistance Concierge services Identity theft services Assistance website

23. 23FOR PRODUCER USE ONLY Worldwide Travel Assistance Worldwide Travel Assistance could include: Embassy & consulate information Immunization, Visa and Passport information Emergency cash transfer assistance Foreign exchange, ATM, and weather information Emergency language interpretation Emergency return travel arrangements Lost or stolen documents and luggage assistance

24. 24FOR PRODUCER USE ONLY Concierge Services Concierge Services could include: Restaurant referrals and reservations Ground transportation coordination Event Ticketing Golf tee time Gift assistance, including wrapping and delivery Special occasion reminders

25. 25FOR PRODUCER USE ONLY Identity Theft Services Credit Reports Assist identity theft victim by ordering and reviewing credit bureau records on their behalf Prosecution Assistance Interact with law enforcement to pursue prosecution of criminals Problem Resolution Review and resolve victim’s issues

26. 26FOR PRODUCER USE ONLY Assistance Website Look for personalized support and member benefits Members Only website should include: Travel alerts providing latest updates on emerging situations to selected travel destinations Travel medical assistance including physician referrals to coordination of medical evacuations if needed Security services including security consultancy services at home or while traveling Information Services including country guides to inoculations, security and health information, and information you need before, during and after travel Emergency Travel assistance including 24 hour counseling via phone to help with emergencies and last minute travel issues

27. 27FOR PRODUCER USE ONLY Security Program How to Manage Risk Global View Critical Elements for Preparation

28. 28FOR PRODUCER USE ONLY Security Evacuation Case Study Open case Name, location, contact, condition/situation Evacuation due to security necessity Determine on the ground environment relevant to client’s situation Formulate a plan and notify necessary contacts Execute the plan Method of transport & destination determinations En-route requirements, speed of transport, facility capabilities, political and other factors Get client to safe haven or to home country (if applicable)

29. 29FOR PRODUCER USE ONLY Evacuated 24 insured's out of Mali (employees, students and other group members) Primarily via commercial flights, by being proactive assistance company saved client $100,000+ versus a charter aircraft Assistance company did a small charter to evacuate a group of 11 employees from a mine site in Mali to Dakar Relocated several insured's to a hotel with 24/7 security, it was also closer to the airport for quick access Travel assistance company kept in constant contact to ensure proper safety, food, water and passports Monitored 40 other insured's and offered intelligence Followed up with all cases until assistance was no longer needed and insured's were safely home Mali Case Study

30. 30FOR PRODUCER USE ONLY Kidnap and Ransom Trends Most unreported but significant increases reported More than 30,000 estimated kidnaps occur each year Estimated annually ransom payments Estimate K&R a $200 million market Half of all kidnappings are in Latin America

31. 31FOR PRODUCER USE ONLY High Risk Areas: 2012 Very High Risk: Afghanistan, Columbia, Haiti, Iraq, Mexico, Nigeria, Somalia, Venezuela High Risk: Algeria, Democratic Republic of Congo, Georgia, Honduras, Iran, Israel & Palestinian Territories, Kenya, Pakistan, Philippines, Sudan, Yemen Medium Risk: Angola, Argentina, Brazil, China, Ecuador, Greece, India, Indonesia, Lebanon, Papua New Guinea, Paraguay, Russia, South Africa, Spain, Thailand, United States

32. 32FOR PRODUCER USE ONLY Kidnap & Ransom Coverage 32 Coverage against financial losses due to kidnap, wrongful detention and hijacking incidents when traveling Benefits could include: Ransom coverage Loss in-transit of payment Judgment, settlements and defense costs Related Expenses: Consultants Salary continuation Personal financial loss Medical costs Rest and rehabilitation Travel and accomadations Reward Interpreter

33. 33FOR PRODUCER USE ONLY Summary Why Business Travel Accident? Obtaining medical treatment and hospital care abroad can be expensive, and medical evacuation to the United States can cost more than $50,000.1 Workers who travel more than 20 nights a month were 2.61 times more likely to report they were in poor or fair health than those on the road one to six days a month.2 Thirty-seven adverse incidents of political violence involving U.S. citizens and interests abroad occurred in 2010; 35 are believed to have resulted from intentional targeting of Americans.3 Only 86 percent of 2011 U.S. domestic flights departed on time; nearly two in 100 were canceled.4

34. 34FOR PRODUCER USE ONLY Summary Duty of Care: Employer Obligations Employers have a duty to protect their employees while travelling, and a legal and moral obligation for the health, safety and security of their employees. If a corporation’s actions

35. 35FOR PRODUCER USE ONLY Questions?

36. Thank you!