Germany as the Center for European Activity of Israeli Companies The Advantages of a Global Insurance Broker

MARSH 1 About MARSH MARSHMARSH has approximately 26,000 employees in over 100 countries. MARSHMARSH was primarily formed to serve clients with global interests. We operate with clients which vary by size, industry, geography and risk exposures. MarshMarsh is organized to serve clients, effectively, delivering tailored solutions based on complexity of the risk and local legal requirements. MarshMarsh takes into account the global footprint, clients risk policy and purchasing styles. MARSHMARSH is a world leader in delivering risk and insurance services and solutions to its clients.

MARSH 2 MARSH ISRAEL MARSH ISRAEL MARSH Inc.,MARSH ISRAEL is a wholly owned subsidiary of MARSH Inc., since 1999, with local routes and professional experience. MARSH ISRAELMARSH ISRAEL offers insurance solutions & risk management consultancy to over 400 commercial & industrial companies including global enterprises (both incoming and outgoing) MARSH ISRAELMARSH ISRAEL Specializes in risk management of business clients only by using vast professional knowledge and skills as well as its global capabilities MARSH ISRAELMARSH ISRAEL has currently 35 employees, fully experienced and reputable in the insurance industry. Most of them are lawyers, economics or other relevant education.

MARSH August 2015 Compulsory InsuranceCompulsory Insurance: Coverage which must be purchased by Law. Admitted InsuranceAdmitted Insurance: Coverage provided by an insurance company which is authorized and licensed to do business in the jurisdiction where the exposure is located. Non-Admitted InsuranceNon-Admitted Insurance: Coverage provided through an insurance company not authorized and not licensed to do business in a given jurisdiction where the exposure is located. Compulsory, Admitted & Not-Admitted Insurances

MARSH August 2015 Motor third party bodily injury & property damage. Worker’s compensation (state scheme). Aviation liability. Third party liability for manufactures of pharmaceutical products. Third party liability for clinical testing, genetic engineering operations, nuclear operators and users and ship owners in respect of oil pollution. Third party liability for security firms, haulers and removers & chimney sweeps. Professional indemnity for accountants, lawyers, auditors, tax advisors and insurance brokers. Common carriers’ property damage liability. Hunters’ liability. Railway operators’ liability (a financial guarantee or insurance). Shipments of waste (a financial guarantee or insurance). Germany :Compulsory Insurances

MARSH August 2015 Unauthorized insurers cannot carry on insurance activity in Germany. At the same time, there is nothing in the Law which indicates that insurance must be purchased from locally authorized insurers (with some exceptions). This is generally interpreted to mean that insurers can issue policies from abroad (with exceptions) if approached by a buyer &/or an intermediary. Insurers from European Economic Area member states may provide insurance in Germany. Compulsory liability insurances may not be placed on a non-admitted basis. There does not appear to be any legislation relating specifically to multinational insurance programs or multinational insurers and such insurances and insurers are subject to the same rules all other insurances and insurers. The legislation does not address the use of global DIC/DIL cover or excess layers above a primary local policy. Non-Admitted Insurance Regulatory Position

MARSH 6 Marsh Germany and Austria 9 Locations Berlin Hamburg Frankfurt Duesseldorf Leipzig Stuttgart Munich Vienna Bremen

MARSH 7 So – when you start an operation in Germany or purchase an existing business – call us, we will guide you properly