1. WHARTON EXECUTIVE EDUCATION PROPOSAL FOR COLLABORATION with INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS (IAIS) AND THE WORLD BANK for THE INSURANCE SUPERVISION PROJECT October 17, 2005

2. OBJECTIVES OF TODAY’S MEETING To discuss Wharton’s proposal for design and delivery of an integrated educational solution for the IAIS membership that addresses the needs for programs for Insurance Supervisors and Regulators

3. PROPOSED AGENDA Introduction and Meeting Objectives Our Understanding of the Program Rationale How Wharton can Contribute Program Structure: Academic Committee, Elements, Structure, Design Proposed Pricing Structure Key Issues Appendix

4. OUR UNDERSTANDING OF THE PROGRAM RATIONALE 13,000 insurance supervisors and regulators active globally in the profession and many come from different educational backgrounds without formal training in insurance supervision According to a World Bank/IMF study, insurance supervision is one of the weakest links in regulation and supervision, urgent need to build supervisory capacity within the sector Rapid changes in the professional environment World Bank’s survey of the training/ learning marketplace in insurance: existing programs do not meet the needs

5. OUR UNDERSTANDING OF THE PROGRAM RATIONALE The International Association of Insurance Supervisors (IAIS), and the World Bank Financial Sector Vice Presidency (FSE) combined forces to launch a project to develop a Core Curriculum on Insurance Supervision IAIS and The World Bank could benefit by partnering with a leading global academic institution that would support their continuing efforts by building upon the basic design that has been created Partner should have strong academic expertise and research capabilities in the areas of Insurance and Risk Management

6. OUR UNDERSTANDING OF THE PROGRAM RATIONALE IAIS and The World Bank need support in the design, development and delivery of educational programs for three distinct target audiences:  Junior level supervisors  Middle level supervisors  Senior level policymakers Proposed program should facilitate networking amongst academics, policymakers and regulators Absence of credible certification in this area

7. HOW WHARTON CAN CONTRIBUTE Wharton proposes an integrated solution: three pronged approach Integration effects change at all organizational levels and facilitates learning of a shared language and vocabulary Policy Seminars: an important “feeder” role Wharton: Strong competencies in the areas of Insurance and Risk Management Wharton Executive Education : sound track record of design and executive education delivery capabilities at all levels in multiple international locations

8. PROGRAM STRUCTURE, DESIGN AND COVERAGE Proposed Joint Academic Committee Composition: IAIS, World Bank, Wharton faculty and staff Role  To ensure that program vision and objectives are met  To ensure that all aspects of program are well integrated  To oversee program strategy and design  To define roles of individual partners  To review the effectiveness of the program on ongoing basis

9. PROPOSED PROGRAM STRUCTURE

10. BASIC PROGRAM STRUCTURE FOUR PHASES OF THE BASIC PROGRAM (4 months including 5 weeks residential) PRE-PROGRAM PHASE (Self-study: Fundamentals) PHASE 1 (Residential at Wharton, 3 weeks: Finance, Insurance Economics, Regulatory Frameworks and Implementation) PHASE 2 ( Work-study, about 3 months: Workplace applications) integrated with GDLN and FSAP PHASE 3 (Residential at Wharton, 2 weeks: Risk & Valuation, Concepts & Implementation)

11. BASIC PROGRAM: APPROACH Curriculum linked closely to the Core Principles Wharton proposes additional Introductory Module : Finance, Insurance Economics and Markets Pedagogy: Lectures, small group discussions, distance learning Assessment: 2 examinations, “supervised learning” project Collaborative teaching model: Wharton, World Bank, IAIS faculty (fulltime, adjuncts, associates) Proposed Pilot Launch: March (Phase 1), July (Phase 3) Proposed Class size of 50

12. ADVANCED PROGRAM STRUCTURE THREE PHASES OF THE ADVANCED PROGRAM (3 months including 3 weeks residential) PHASE 1 (Residential at Wharton: 2 weeks, Insurance and Risk Management and General Management Components) PHASE 2 ( Work-study, about 2.5 months: Workplace applications) PHASE 3 (Residential at Wharton, 1 week: same as above)

13. ADVANCED PROGRAM: APPROACH Wharton’s approach: Strategic and integrative as opposed to “drilling down” on basic themes Financial and Management components Three Phases spread over 3 months Pedagogy: Lecture, seminars, distance learning One examination, one major project Proposed Pilot launch: Fall 2006 Proposed Class Size: 50

14. POLICY SEMINARS Forum for academics, policymakers and regulators Ongoing basis, 2-3 a year Feeds ideas and themes into the Advanced and Basic Programs Leverages key strengths of Wharton faculty 2-3 days residential at Wharton Outcomes: Brief “White Paper”, networking Possible themes: Resolution of Insolvencies, Risk-focused supervision, Early Warning Systems Policyholder Protection Schemes, Demutualization, Supervisory structures, Risk based Capital standards

15. PROPOSED PRICING PROGRAM FEE BASIC PROGRAM : 4 Months including 5 weeks residential $ 29,000 per participant ADVANCED PROGRAM : 3 months including 3 weeks residential- $18,000 per participant POLICY SEMINARS: 3 days residential- $3,000 per participant, $2,460 non-residential DESIGN AND DEVELOPMENT FEE Basic Program: $250,000 Advanced Programs: $225,000 OTHER EXPENSES Faculty and staff travel etc

16. KEY ISSUES Program development funding Pricing/Demand Considerations Integration with other learning initiatives Formation of joint Academic Committee Finalize program design, development and delivery for all three elements of the integrated program Delivery dates for Basic, Advanced and Policy Seminars Decision on branding Development of joint marketing plan

17. APPENDIX Wharton Resources and Capabilities (for information only)

18. THE WHARTON SCHOOL Founded in 1881 as the nation's first collegiate business school. World's largest, most cited faculty with 280 standing and associate members. Leading undergraduate, MBA, PhD, and executive programs. More than 100,000 alumni and past participants in 139 countries around the world. State-of-the-art academic facilities in Philadelphia and San Francisco. Folger Building San Francisco Campus Jon M. Huntsman Hall Philadelphia Campus

19. ACADEMIC BREATH AND DEPTH Academic Departments Accounting Finance Health Care Systems Insurance and Risk Management Legal Studies Management Marketing Operations and Information Management Public Policy and Management Real Estate Statistics Research Centers Center for Health Management and Economics Center for Human Resources Center for Leadership and Change Management Financial Institutions Center Fishman-Davidson Center for Service and Operations Management S.S. Huebner Foundation for Insurance Education Huntsman Center for Global Competition and Innovation Reginald H. Jones Center for Management Policy, Strategy, and Organization Leonard Davis Institute of Health Economics Pension Research Council Risk Management and Decision Processes Center SEI Center for Advanced Studies in Management Sol C. Snider Entrepreneurial Research Center Weiss Center for International Financial Research Rodney L. White Center for Financial Research Samuel Zell and Robert Lurie Real Estate Center Carol and Lawrence Zicklin Center for Business Ethics Research

20. INTELLECTUAL LEADERSHIP Faculty articles in peer review publications (2000 to 2005) Source: University of Texas, Dallas

21. 8,000 executives attend annually Open Enrollment Programs: 63/year — 40% of business Custom Programs: 147 — 60% of business Longest running executive education program: SII, since 1953 Steinberg Conference Center: completed in 1988, expanded 2000 Wharton West opened in 2001 INSEAD Alliance: France and Singapore WHARTON EXECUTIVE EDUCATION

22. MULTIPLE LEARNING APPROACHES Seminar Small group activity Supervised Learning Project Mini- cases Simulation Lectures Case- studies Coaching

23. DEDICATED CLIENT SERVICE TEAM Program Director Academic Director Jointly responsible for program design, delivery, faculty coordination and ensuring client needs are met PD is typically first point of contact Program Manager Program Coordinator Teaching Faculty Teaching Faculty Teaching Faculty Responsible for individual sessions Oversee all delivery and administrative details