2. Cash Handling Insurance – the buyer’s perspective
Marek Porczyński, Marsh Sp. z o.o.
Paul Martin, Marsh Ltd

3. Agenda Marsh introduction The criminal “arms race” in Europe
Cash handling insurance coverage
Good and bad
Selection of insurers
The insurer’s view

4. The businesses of MMC Risk and insurance services
Marsh is the world leader in delivering risk and insurance services and solutions to clients
Guy Carpenter is the world's leading risk and reinsurance specialist, creating and executing reinsurance and risk management solutions for clients worldwide
Risk consulting and technology
Kroll, the world's leading risk consulting company, provides a wide range of investigative, intelligence, financial, security and technology services to help clients solve problems and capitalize on opportunities
Consulting
Mercer HR Consulting is a global leader for HR and related financial advice, products and services
Mercer Specialty Consulting

5. Marsh in Poland
Since June 1992 has obtained a license for insurance and reinsurance services
The leading insurance broker in Poland by turnover and number of clients
Five offices: in Warsaw, Cracow, Wroclaw, Poznan and Gdansk at your service
82 people working for Marsh in Poland, 54 professional brokers
Renders services to 1200 local and multinational clients

6. Marsh – our credentials
Members of ESTA
Market leaders in insurance for cash handling companies and financial services Industry
Client base:-
Largest global companies
Largest independents in France, Germany, Switzerland, Norway and North America
Industry knowledge & experience

7. ESTA – European Loss Data 1998-2005

8. ESTA – European Loss Analysis 2005
Area of Attack
Total Attacks
Total Loss EUR M
Cross Pavement
862
22.4
Vehicle 99
34.2
ATM Replenishment
180
14.8
Operating Centre 13
25.1

9. Case Study – Sweden   Plant Plant equipment equipment breaches
perimeter
vehicle
gates 
Plant
equipment
breaches
loading bay
door and
rams
despatch
wall 
Attacker
pulls a bag
of cash
through
the
despatch
window 
Attackers
remove
bags of
cash from
branch

10. Case Study – Sweden

11. Tiger Kidnap UK, Tonbridge – 21 & 22/02/2006
 Building and
vehicle entrance
Control room and
loading bays 
 Robbers and
hostage arrive
in a white Renault
truck followed by
accomplices in a
car
Renault truck is
reversed into
loading bay 

12. ESTA data – Attacks per Country 2004/2005
Pos. 2005
Pos. 2004
Country
Number of Attacks 1
United Kingdom
832 2
France 76 3 6
Sweden 52 4 5
Portugal 46
Ireland 34 -
Poland 25 7
Italy 24 8
Germany 14 9
Netherlands 12 10
Greece 11
All Others 30

13. Exposures faced Armed Robbery Tiger Kidnap Infidelity
Physical cash
Electronic payments
“Mysterious unexplained disappearance”
Terrorism
Acts of God

14. Cash Handling Insurance Policies -Characteristics of good quality product
Specialist cover for cash handling operations
All risks of physical loss or damage
Sum insured not reduced by claims
No possibility of cancelling the Policy
No restrictions on operations
Extension for electronic funds transfer exposure
“Less is more!”

15. Good quality product Minimal Policy Exclusions: War on land
Terrorist attack – on premises only
Not theft by terrorists
Radioactive Contamination, Chemical, Biological, Bio-chemical And Electromagnetic Weapons
Theft by owners or board directors of the CIT company

16. Poor quality product Limits within the Policy for:
Each type of vehicle
Number of guards
Across the pavement
ATM service
Specific locations

17. Poor quality product Claim only covered if: CIT industry rules obeyed
Internal procedures complied with
Security levels not changed without permission
Operating limits not increased without permission
Investments in security made as required by the insurer
Claims reported within a time limit

18. Selection of Insurers Best price (?) Good credit rating
Expertise in CIT industry
Flexible approach
Fast claims response
Long term view

19. What is the insurer looking for?
Professional culture
Strong management control
Effective security team
Capital investment in security
Good loss record
Insurers will give long term support to professional CIT companies

20. The information contained herein is based on sources we believe reliable, but we do not guarantee its accuracy, and it should be understood to be general insurance information only. Marsh makes no representations or warranties, expressed or implied, concerning the financial condition, solvency, or application of policy wordings of insurers or reinsurers. The information is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such. Insureds should consult their insurance advisers with respect to individual coverage issues. This document or any portion of the information it contains may not be copied or reproduced in any form without the permission of Marsh Ltd, except that clients of Marsh Ltd need not obtain such permission when using this report for their internal purposes. © Copyright 2007 Marsh Ltd All rights reserved Marsh Ltd is authorised and regulated by the Financial Services Authority.