1. Page 1 Recording of this session via any media type is strictly prohibited. Page 1 Being the Boss: How Unbundling Can Save You a Bundle

2. Page 2 Recording of this session via any media type is strictly prohibited. Roxsann Wilson, Director of Global Risk Management, CareFusion Corp. a $3.6B medical device company HQ’ed in Southern California. Roxsann lead CareFusion through a spin- off, setting up the entire Risk Management department from the ground up. Roxsann also is a member of the ERM Steering Committee, working to address the top risks facing the organization. Ken Rice CPCU, ARM. AVP, Arch insurance Company, National Accounts Casualty. Ken has over 33 years of experience in the casualty insurance marketplace. Ken has held a variety of underwriting and management positions with Arch, AIG, Chubb and Hartford including starting up Chubb Atlantic in 1994.

3. Page 3 Recording of this session via any media type is strictly prohibited. What to Expect The goal of this session is for attendees to: Not Be the Boss who would never consider unbundling because it is “new” or “different” or because “I just don’t have a clue”:

4. Page 4 Recording of this session via any media type is strictly prohibited. What to Expect But instead – To be the BOSS that considers all the options and gets the best deal possible for their organization:

5. Page 5 Recording of this session via any media type is strictly prohibited. What to Expect The goal of this session is for attendees to:  Identify & evaluate the factors to be taken into account when considering an unbundled program.  Recognize how an unbundled program creates greater cost effectiveness along with better service and greater flexibility.  Determine how to create a customized unbundled program that is individually tailored to meet an organization’s unique needs & requirements.

6. Page 6 Recording of this session via any media type is strictly prohibited. What to Expect We plan to present unbundling from four different perspectives:  Insured/Risk Manager  Broker  Insurance Carrier  Third Party Administrator (tpa)

7. Page 7 Recording of this session via any media type is strictly prohibited. Insured Perspective Unbundling is more than just having someone besides your insurance carrier handle your claims:  Control over claim management approach  Indemnity vs. Defense expense  TPA’s have no financial interest in outcome  Are your customers your potential claimants?  Collaborative Approach  Stability & Consistency  One face to internal customers

8. Page 8 Recording of this session via any media type is strictly prohibited. Benefits of an unbundled program:  Service – TPA’s only function is service  Risk Management Information Systems  Benchmarking & Stewardship  Control & Oversight  Loss Control  Counsel Selection  Settlement Authority Insured Perspective

9. Page 9 Recording of this session via any media type is strictly prohibited. Insured Perspective Financial Benefits of an unbundled program:  Risk Analysis Tools  Best claim is the one you never had  What is driving your claim expenses?  Price  Pay only for what you use  Cash Flow Considerations  Absorb the predictable losses without paying a profit margin  Ancillary Services & Purchasing Power

10. Page 10 Recording of this session via any media type is strictly prohibited. Insured Perspective Factors to consider when entering into an unbundled program:  Additional relationship to manage  Claim oversight and communication is key to relationship success  Compare costs & service  Tailor a program that is best for your organization  Sarbanes Oxley  Oversight & Audit

11. Page 11 Recording of this session via any media type is strictly prohibited. Broker Perspective Much of the content on this portion is courtesy of: Dirk Van Heyst – Senior Vice President & Casualty Practice Leader, Lockton Companies, New York, NY Dirk is the Casualty Practice Leader for the Lockton Northeast series, focusing on all casualty lines of coverage. In this capacity he is responsible for the negotiation and placement of casualty lines of coverage and the delivery of service to clients. In his 19 years of experience, he has experience with clients in many industry segments.

12. Page 12 Recording of this session via any media type is strictly prohibited. Broker Perspective The kind of boss Dirk feels he is vs. the kind we all see him as:

13. Page 13 Recording of this session via any media type is strictly prohibited. Broker Perspective When does unbundling make sense for your client and items to consider when comparing bundled vs. unbundled programs:  Scope of Services  Pricing Components including “hidden costs”/imbedded charges  Service Managers  Service Assessment  Flexibility

14. Page 14 Recording of this session via any media type is strictly prohibited. Carrier Perspective What are the advantages and disadvantages of:  Bundled Insurers  Unbundled Insurers  Carriers that both bundle and unbundle

15. Page 15 Recording of this session via any media type is strictly prohibited. Carrier Perspective The kind of boss you find at an insurance carrier - at least in their minds

16. Page 16 Recording of this session via any media type is strictly prohibited. Third party Administrator Perspective Much of the content on this portion is courtesy of: Barney Murphree, Esq., Gallagher Bassett Services, Vice President Account Management, Boston, MA Manages a Service Team of 14 insurance professionals who manage all aspects of service for their respective clients. Prior to joining Gallagher Bassett was employed with AIG Insurance Company as Director of National Accounts in the Boston, MA office for 8 years. Prior to AIG was employed as Risk Manager and Assistant General Counsel for the Boston Housing Authority for 8 years. Managed the insurance, safety, claims, and civil litigation for the Authority.

17. Page 17 Recording of this session via any media type is strictly prohibited. Third party Administrator Perspective  What advantages can a tpa provide to an insured over an insurance carrier?  TPA’s programs/products that drive outcomes  Managed Care  Pharmacy and Narcotics Control  Litigation  Look Beyond Price; do your homework, make sure TPA has experience with your business/Industry

18. Page 18 Recording of this session via any media type is strictly prohibited. Questions, Final Comments and Contact Information Ken Rice: krice@archinsurance.com 646-678-2368krice@archinsurance.com Roxsann Wilson: roxsann.wilson@CareFusion.com 858-617-5860roxsann.wilson@CareFusion.com