2. Mark Cook Willis Towers Watson

3. Employee benefits – risk managers getting engaged High performing companies have health, well- being and associated employee benefits at the heart of their strategic thinking Risk managers want to be part of strategic thinking and have knowledge and skills that could contribute to this subject Getting engaged makes sense ….

4. Our Seminar Leaders Our Panel: David Cross Willis Towers Watson Andrew Wood Zurich Damian Ross Generali Tracey Skinner BT Our Main Themes: Convergence of general insurance and employee benefits Increased use of captives to manage EB General EB and cross- border/international EB programme developments Wake-up call to risk and insurance managers to get prepared and involved

5. Mark Cook © 2016 Willis Towers Watson. All rights reserved. Director, Global Services and Solutions June 2016

6. Employee Benefits and Their Risks – Explained © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 6 1. Evolution of employee benefits 1.1 Emergence of Enterprise Risk Management 1.2 Embracing employee benefits within Enterprise Risk Management 2. Employee benefits – explained 2.1 Managing human capital 2.2 Employee benefits summarised 3. Understanding employment benefit costs 3.1 Illustrating country differences 3.2 Facilitation through data and technology 4. Risks of providing benefits – explained 4.1 Outlining risks to organisations 4.2 Understanding pension / retirement plan risks 4.3 Addressing risks through co-ordinated response strategies 4.4 Developing wellness strategies to enhance business performance 4.5 Understanding the impact of poor EB management 4.6 Illustrating roles and responsibilities 5. Opportunities for multinationals – explained 5.1 Optimisation through risk management 5.2 Developing cross-border risk financing 5.3 Focussing on multinational pooling and captives

7. Aligning human capital to business strategy © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 7 OUTCOMESHUMAN CAPITAL DIMENSIONSBUSINESS STRATEGY Desired Culture Human Capital Strategy Customer Experience Business Performance Employee Performance Employee Retention Employee Engagement Employee Attraction PURPOSE WORK TOTAL REWARDS PEOPLE EVP Employee Value Proposition

8. We should note that EB provided by companies can include an array of options… © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 8 They include:  Retirement savings and pension benefits  Healthcare coverage including medical, dental and optical benefits  Other insurable benefits such life coverage, short and long disability, accident and travel accident plans  Vacation and other leaves of absence, including health-related absence  Allowances, eg for housing or education  Profit sharing plans based on performance measures  Company cars or allowances  Other perquisites, such as catering arrangements/meal allowances, travel support, sports/fitness arrangements, arranged discounts

9. Benefits by country – in design and value and in proportion of overall package © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 9

10. Comparing the cost of a typical medical plan in different countries © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 10 Average Annual Medical Premium (Family Coverage – US$) ChinaFranceUAEIndiaCanadaUKHong Kong RussiaBrazilSouth Africa USA $250$1,915$1,200$455$3,225$2,400$1,950$1,680$4,185$6,150$15,500

11. Risks of providing employee benefits - explained © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 11 Risks  Financial  Accounting  Compliance  Talent / resourcing strategy  Fiduciary / governance  Operational  Reputation Opportunities  Pensions & benefits around the world:  Align fully with business needs and reward strategy  Help the workforce to be effective and engaged  Confidence that reputation, compliance and governance issues:  Will not arise; and/or  Can be addressed without incident  Financial optimisation  Cost savings  Pension/benefits risk optimised in alignment with overall business financing  Ability to demonstrate robust  Global pensions & benefits accounting  Assessment and management of underlying pensions/benefits risks  Actuarial planning to mitigate future cost increases Make the whole greater than the sum of the parts HQ Goal

12. Spectrum of cross-border financing approaches © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 12 NO SAVINGS MODEST SIGNIFICANT MAXIMUM CASH FLOW POTENTIAL Degree of risk retained by the company Fully insured, Traditional multinational pooling Actively managed pool, passive captive Global pricing Captive with premium and reserves transfer Self-insurance with/without ASO/TPA 5 5 6 6 1 1 2 2 3 3 4 4 Degree of savings opportunity Degree of Corporate control

13. Comparing multinational pooling results to captive reinsurance results © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 13

14. David Cross © 2016 Willis Towers Watson. All rights reserved. Director, Large Accounts June 2016

15. What are typical employer issues in the benefits space? © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 15 Financial/ Cost Management Global/Local Governance and Oversight Employee Appreciation Resource Management  What do our benefits cost?  What factors drive our cost and how can we plan and predict?  What actions are available to us to trim and streamline cost?  What programs increase our employees’ engagement?  How do we differentiate ourselves in key markets?  What steps can we take to achieve better productivity?  How much plan governance is needed to be effective?  What data enable us to achieve the right level of control?  How do we effectively leverage our global scale?  How should we deploy internal and external resources?  What solutions exist to reduce resource dependency  How can we leverage technology to gain efficiencies?

16. What do our clients ask of us? © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 16 Creativity, but within an agreed governance framework Proactivity, what direction is this going in? How do I future proof? Simplicity, where efficient and practicable. Sometimes this may require compromise! An open mind on financing, but apply all of the above. Excellent administrative service where needed, but always point to market efficiencies. The best technology and as soon as possible. Governance and effective risk transfer.

17. -To insert a Zurich picture click on the "camera"-icon in the Zurich CI toolbar and follow the instructions. -To insert a picture from your personal files, click on the "Insert Picture from File" icon here on the right. Please make sure that this picture follows the Zurich core elements available on the "book"-icon in the Zurich CI toolbar. -To keep this neutral background, just leave it as it is. Note: this message will not be displayed in the presentation mode. AIRMIC 8 June 2016 Andrew Wood Corproate Life & Pensions Zurich International Corporate Solutions

18. Risk Management Trends in Employee Benefits 18

19. Generali Employee Benefits A Leading Network Damian Ross, Regional Manager - Airmic 8 th June

20. 20 Employee Benefits - Global Program Approach Top Down Develop Global EB proposition  Fronting network  Global Broker  Other Buy-in from CFO / board level Mandate Counter local arguments More efficient than convincing local companies of EB proposition  Lack of understanding  Surmount local relationships  If captive - rates can be subject to market forces

21. EB Fronting companies need to catch-up!  Quality  Timing (IT)  Availability (local markets)  Investment  Data Protection laws Employee Benefits - Data

22. Thank You. Contacts: Generali Employee Benefits Head Office 149, Avenue Louise 1050 Brussels, Belgium Tel +32 2 537 27 60 www.geb.com marketing@geb.com

23. Insurance/Risk/Employee Benefits – The Bigger Picture Tracey Skinner, Director - BT Group Insurance & Risk Financing

24. Areas of Protection General Corporate Insurance Employee Benefits Third Party/Customer/Employees

25. Employee Benefits UK focus- presence in 170 countries Started placing in captive 5/6 years ago Today 65% of all addressable spend included UK Budget in scope/ overseas rests with HR Collaboration essential/ finance not dictate Procurement fully engage Proactive network is essential to success Captive has diversification /stop loss View of total cost across employee related spend, EL/PA/Life/Accident/Medical/Rehab

26. Question Time