1. Profit Opportunities and Value Added Products SATISFYING CLIENTS - Profit Opportunities and Value Added Products National Conference ALB Non-Financial Institutions III-rd Edition Dr. Alexandru Peligrad October 2007

2. 2 Marsh 55.000 Employees Present in over 100 country Turnover: 12 billion USD MMC Group

3. 3 Marsh A beneficial alliance With fast developing markets and increased demand from clients, Marsh have over the last few years developed many programs which: – Create additional profit opportunities – Provide marketing tools – Increase clients retention – Increase clients loyalty – Deliver benefits with high perceived client value

4. 4 Marsh Added value products Insurance products distributed for private individuals thought leasing companies or associations with an affinity to common interest groups for the scope of satisfying clients needs and differentiate from the competition.

5. 5 Marsh Specialist Range of Products 1. GAP PRODUCTS 2. EXTENDED WARRANTY 3. CREDIT LIFE INSURANCE (PAYMENT PROTECTION) 4. TYRE INSURANCE 5. KEY PROTECTION 6. MOTOR INSURANCE (CASCO, MTPL)

6. 6 Marsh 1. GAP(1) - Finance Covers the difference between the booked value of the insured vehicle filed by the leasing company (owner of the vehicle) and the general vehicle value calculated by the primary insurer in the event of total loss or theft, for 5 years.

7. 7 Marsh Benefits protect the client against the debts with the leasing company protect the leasing company against the finacial loss stemming from the insufficient primary insurance settlement which doesn’t cover the loss up to the insured vehicle booked value.

8. 8 Marsh GAP (2) - “Back to invoice value” 50 000 EUR 40 000 EUR 30 000 EUR 20 000 EUR 10 000 EUR GAP 2 Covers the difference between the current value / price paid for the vehicle and the general vehicle value calculated by the primary insurer (CASCO) in the event of total loss or theft, for 3 years. Vehicle purchase price

9. 9 Marsh Benefits Full financial protection for 3 years at the level of purchasing price, i.e. no worries with regard to theft or total damage or nature disaster Enough financial resources to buy an equivalent value car... 100% insurance claim Easily understandable terms and conditions of the contract

10. 10 Marsh 2. Extended Warranty Covers any sudden mechanical or electrical failure inconsistent with normal usage and component life, (excluding general wear and tear or accident damage) after the manufacturer’s warranty expired. Extended warranty period: 6 months up to 5 years. Types: Optional or Mandatory Applicable for: vehicles and equipments new and second hand

11. 11 Marsh Benefits to the client Clients do not have to budget for mechanical/electrical failures or their next service Vehicle residual value is increased 100% insured The vehicle is more cost efficient to run as all preventative maintenance is done. Vehicle is more reliable as genuine parts are used and fitted by fully trained technicians.

12. 12 Marsh Benefits to the leasing company Competitive advantage Clients more likely to pay installments, instead of paying for vehicle problems Vehicles are maintained with no mechanical or electrical defects Additional income – sales commission You will be the dealers 1 st choice for finance as the warranty will increase their parts and service revenue for the dealers workshops and locks in the clients for a longer period

13. 13 Marsh Extended Warranty web system

14. 14 Marsh 3. Credit Life Insurance (Payment Protection Insurance) Protects the leasing clients against potential debts with the leasing company in the unexpected cases of sickness, injury, accidental death or unemployment during the period of the lease contract Cover: Life, accident (temporary and permanent), sickness, unemployment, critical illness Options: - LAS (life, accident, sickness) ­LASU (life, accident, sickness, unemployment) ­Critical Illness

15. 15 Marsh Life cover Benefits: – In the event of death, the Insurer pays the outstanding balance, including any residual/balloon, up to a limit of ….EUR.

16. 16 Marsh Critical Illness Benefits: Pays the outstanding, up to a maximum benefit of …………EUR, in the event of contracting/suffering one of the following conditions: - Kidney Failure - Heart Attack - Coronary Artery Bypass - Stroke - Major Organ Failure - Cancer

17. 17 Marsh Accident / Sickness Benefits: Disability pays one full monthly payment after 14 consecutive days off work (starting from the date you first saw your doctor) Therefore, further monthly payments are covered every further 30 days until return to work or the loan has been repaid in full

18. 18 Marsh Involuntary Unemployment Benefits: – Pays the full monthly payment after 30 consecutive days of unemployment – Further payments are made ever 30 days until return to work or 6 payments have been made in any one claim – Subsequent Unemployment claims can be met once a further 6 months of full time employment has been reached

19. 19 Marsh 4. Tyre Insurance Cover the clients when the tyre on their vehicle is accidentally damaged or punctured BENEFITS TO THE CLIENT In the event of accidental damage or puncture to a tyre, this policy will reimburse the customer up to $60.00 per tyre after a $10.00 excess has been deducted, as long as the tread depth exceeds 2mm at time of claim. INSURANCE PROVIDED The cover is available for 1, 2 or 3 years. It covers the 5 tyres registered at purchase, on vehicles up to 6 years old.

20. 20 Marsh 5. Key Protection Key Protection is based on a very simple idea that hundreds of thousands of keys are lost or stolen every year and that the chance of repatriation of these keys to the owner is less than 2%. Cover: - lost of key and car lock replacement - 3 days car hire up to $25 per day inclusive VAT Period of coverage: 1, 2, 3, 4 and 5 years

21. 21 Marsh 6. Motor Insurance (CASCO & MTPL) Benefits to the leasing company – Additional income – Certainty that all lease goods are insured – Terms and conditions tailored made – Externalization for policy administration and installments payment – Possibility to obtain regular analysis and information on-line in real time – Claims assistance Benefits to the client – Competitive quotes – Possibility to chose between different Insurers – Efficiency in policy administration – Claims assistance

22. 22 Marsh Activity steps Leasing Company Marsh Insurer Policies Administration Claims handling Information Management Administration Consultancy Training Person trainin Branch training Product training Product development Product placement Offers negotiation Offers assessment Terms and conditions negotiation

23. 23 Marsh Contact Details Marsh Broker de Asigurare – Reasigurare Sos. Nordului 24-26, Sector 1, Bucharest Tel: +40 21 2321874 Fax: +40 21 2322102 E-mail: alexandru.peligrad@marsh.comalexandru.peligrad@marsh. www.marsh.rowww.marsh.ro / www.marsh.comwww.marsh.com