global claims solutions A closer look at our claims process and how Zurich s expertise can really make the difference. Corporate customers

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1 global claims solutions A closer look at our claims process and how Zurich s expertise can really make the difference.

2 Zurich Insurance Group is one of the world s largest insurance providers with a global footprint. Zurich Global Corporate provides insurance protection to a significant proportion of the FTSE 100 companies. We pride ourselves on our industryleading international insurance programme capability through our unique servicing propositions. Zurich can implement compliant global coverage across 180 countries. Our global claims network will deliver these programmes to you if or when a claim occurs. We understand that a quality claims service is imperative to our customers. You rely on us to tailor our claims offering to effectively manage claim spend, help protect brand reputation and to get you back in business as quickly as possible following a major event. When we talk about delivering when it matters for our customers, it is often in the event of a claim. We pride ourselves on dealing with all claims quickly and efficiently and believe our expertise can make the difference to you. Vinicio Cellerini Chief Executive Officer Zurich Global Corporate UK

3 Our claims offering is the end product customers are paying for, our goal is to ensure we are there when you need us most. We have around 8,000 global claims professionals within Zurich. We have showcased our capabilities through our exceptional response to catastrophes across the world. Our expertise and global spread have been invaluable in serving our customers. This demonstrates the value of a one Zurich approach. Our claims professionals around the world have significant experience within a variety of specialisms and across all classes of business. The training and development of our claims people is of paramount importance to us. We have trained and certified more than 400 international insurance programme claims specialists globally, to support this key growth area. Tony Emms ACII Chartered Insurer Chief Claims Officer Zurich General Insurance

4 Five claims promises We understand you look to Zurich to help you safeguard your business when circumstances demand. Mark Blanchard Head of Claims Zurich Global Corporate UK

5 We have built a service proposition that gives customers the best balance of claims skills and services based on five key areas of expertise. 1 Fast, effective and transparent claims management process acknowledging claims promptly, site visits for large losses and providing coverage decisions at the earliest opportunity. 2 Specialised knowledge across the key classes of insurance Motor, Property, Casualty and Financial Lines. 3 Expert claims relationship managers to support our largest customers. 4 A global claims network delivering consistent local solutions with claims professionals trained to deliver global programmes across 180 countries ensuring you get back to business quickly. 5 Leading the industry in providing insight and thought leadership to shape the claims landscape. Together, these are the key features of our unique claims service. Our promises are driven by what our customers request rather than dictated by what we supply. We are transparent in how we assess losses and will be clear on how we calculate the final settlement. We excel in delivering complex insurance programmes, and will continue to innovate in order to provide the best claims solutions to our customers. It is our expertise that truly makes the difference.

6 Zurich Claims Excellence Every customer s approach to insurance may be different. Having worked to identify the different views within the market, we have developed a claims offering which is driven by technical excellence, effective delivery and can be tailored to meet our customers specific requirements. Driven by our Claims Relationship Management approach and underpinned by our Technical Claims Expertise, we look to provide a legally compliant claims handling service to work in partnership with our customers. Use the four buttons to the right to find out more on each area.

7 Contents Claims Excellence No.1 claims relationship management Claims Excellence No.2 global claims solutions Claims Excellence No.3 technical claims expertise Claims Excellence No.4 shaping the claims landscape

8 Claims Excellence No.1 Claims Relationship Management You will be assigned a dedicated Claims Relationship Manager, who will ensure that Zurich s claims solutions and service promises fully meet your requirements. This will involve an in-depth discussion of your needs. We will identify your bespoke requirements and tailor our services to deliver these. All agreements are then clearly communicated to our claims teams to ensure they are aware of your service requirements and standards. Your Claims Relationship Manager will have ultimate responsibility for Zurich s claims service delivery. The Claims Relationship Management team are an integral part of our service delivery. They ensure that you are kept informed of relevant legal developments, offering insight and, if applicable, ways to help you improve claims performance. Access to a Claims Relationship Manager ensures that your portfolio of claims is managed in line with the agreed protocol and that your tailored solution is consistently delivered. Whether your key concerns are cost mitigation, brand reputation or employee welfare, our claims relationship team will ensure that the delivery of your claims handling reflects your priorities. Insights and Thought Leadership We develop claims scenario workshops to help provide certainty for our customers board of directors and risk managers. Understanding how the policy will respond and some of the decisions that will need to be made following a large loss helps you to become more prepared in the event of disruption to your business.

9 Claims Excellence No.2 Global Claims Solution It is critical to our customers that we provide a compliant and technically expert claims solution that ensures claims are handled and paid in accordance with local legislation. Delivery of International Programmes from Zurich (IPZ) Claims All of our customers have access to global claims expertise through our network. Our claims handling teams have the expertise to deal with complex programmes and claims solutions. We maintain this through an extensive, continual and robust staff learning and certification process. IPZ-certified claims staff deal with all international claims. This ensures that they have the right skills and knowledge to deal with complex claims. The Claims Relationship Management team develop claims protocols to ensure any requirements over and above local standards are communicated to all territories included in the programme, ensuring full consistency worldwide. Global Best Practice all claims staff are trained on Zurich s global best practice requirements. This ensures there is global consistency and the customer will get the Zurich Way of handling no matter wherever in the world the loss occurs. Freedom of Services Hub (FOS) Our customers who select the benefits of an international programme often look for effective and efficient ways to reduce the cost of these programmes further by selecting a Freedom of Services (FOS) policy for risks inside the European Economic Area (EEA). We recognise this and have created a Property and Casualty FOS hub to create an efficient single point of notification for all FOS claims. Simple claims are settled quickly by the hub. Where we recognise the need for a local presence to support our customers through the claims process, the claims are passed to Zurich s local office to do just that. Payments are made and claims oversight is provided by the hub in the UK providing our customers with the best of all worlds: A single point of notification. Local expertise where needed. Reduced reliance on external experts, reducing unallocated loss adjustment expenses. Our hub team is specifically trained not only in their claims discipline but additionally with the softer skills needed to effectively manage claims from around the EEA, ensuring that local customs and market practices are understood and communication is maintained locally and centrally as needed.

10 Claims Excellence No.3 Technical Claims Expertise We ensure the right people are involved from the outset. We have a number of Practice Leaders for each type of claim. Head of Property and Specialty Claims James Nicholson Tel: +44 (0) james.nicholson@uk.zurich.com Casualty Claims Practice Leader Chris Brookes Tel: +44 (0) chris.brookes@uk.zurich.com Energy Claims Practice Leader Leo Dixon Tel: +44 (0) leo.dixon@zurich.com Construction Claims Practice Leader Matthew Porter Tel: +44 (0) matthew.porter@uk.zurich.com Marine Claims Practice Leader Philip Norwood Tel: +44 (0) philip.norwood@zurich.com Head of Financial Lines Claims William Anderson Tel: +44 (0) william.anderson@zurich.com Regional Claims Manager Motor Claims Practice Leader Alastair Thomson Tel: +44 (0) alastair.thomson@uk.zurich.com

11 Our approach includes: Motor: Whether the incident involves one of your commercial fleet or a company car, immediate action is taken to ensure that the vehicle is off the road for the minimum amount of time. We offer: First response unit to handle notification. Access to an approved repairer network for both private cars and commercial vehicles. Courtesy vehicles when an approved repairer is used for the vehicle repair. Repatriation of vehicles across territories. In-house motor engineers. Glass repair or replacement. Discounted hire car arrangements. European claims unit to co-ordinate our claims network. Proactive third party claims handling. Dedicated teams to handle cost sensitive claims such as credit hire and personal Injury cases. Property: In the event of a large loss or surge events we can offer: An unrivalled global claims network with scalability of resource across all territories. Supplier management to ensure the right expertise on the ground, beginning the recovery process of your business at the earliest opportunity. A large loss claims team who have autonomy to make early repair decisions and authorise release of funds to minimise disruption. Compliant claims solutions ensure that we are able to make payments at the earliest opportunity. Dedicated practice leaders are ready to drive the handling of the claim to minimise interruption to your business. All of this is supported by: Disaster recovery service providers who can arrange temporary repairs and water removal, temporary power and telephony, data removal and expert cleaning and restoration. An independent loss adjuster from our approved panel. Casualty: Due to their complexity, Casualty claims can impact the business both financially and operationally. Our claims offering is designed to meet these challenges head on and ensure that both the customer and the claimant benefit from our claims solutions. Dedicated Practice Leaders. Field force of highly experienced Claims Inspectors to carry out on-site investigations and the collation of documentation. Access to a panel of Loss Adjusters who can mirror the Claims Inspectors across territory. Medical Management Centre, employing fully qualified nurses. Specialist Occupational Disease team. Complex Injury team to manage high value claims. Staff trained in handling claims arising from complex multi-national insurance programmes. Financial Lines: When faced with a Financial Lines claim it is usually the most senior members of the organisation who are impacted. Zurich s dedicated team of experts work closely with our customers to agree claims strategies and provide expertise through a mix of Zurich employed solicitors and insurance professionals. This spans Directors and Officers, Professional Indemnity and Financial Institutions cover. Led by William Anderson, a London-based team managing global claims outside the USA (where a US Financial Lines team is in place).

12 Claims Excellence No.3 Technical Claims Expertise Specialist knowledge ACROSS THE KEY CLASSES OF INSURANCE We understand that whatever the risk, whatever the cover, it is the level of relevant insurance expertise behind it that will ensure the best possible outcome for our customers. That is why we pride ourselves on the depth and breadth of our knowledge of claims issues across Motor, Property, Casualty and Financial Lines.

13 Property Damage and Business Interruption Marine, Fine Art and Specie Construction and Engineering Energy Zurich in Action Property Motor Casualty Financial Lines Claims Services

14 Property property damage and business interruption The Property Damage and Business Interruption claims practice consists of a dedicated team of claims adjusters experienced in dealing with international and highly complex losses. The team has a uniquely innovative approach to managing major claims for Zurich Global Corporate Property customers. We have crafted a holistic and dynamic wrap around process, providing support to customers beyond that of a typical insurer. Three themes dominate our response to major incidents: Pre-loss scenario planning: Zurich invites customers to stress test their policy response processes and the effectiveness of their business continuity planning, following typical catastrophic loss scenarios. This enables us to advise on possible claim outcomes and provide pre-loss solutions to potential post-loss challenges. Project management: uniquely, Zurich operates as a unified international claims team. Immediately following a major incident, we mobilise in-country claims experts. These are supported by the London based Global Major Loss Team, led by a Chartered Loss Adjuster with over 30 years experience. Early relationship management encourages a collegiate approach and minimises misunderstandings, building trust to achieve early settlement. Early payments: this aids cash flow management and provides the confidence to invest in loss mitigation measures and capital expenditure. Early payments demonstrate Zurich s commitment to the customer and reassures investors. Simply put, our approach is to proactively manage incidents from a central point from initial notification right through to final settlement using innovative tools to help us along the way. James Nicholson Property Claims Practice Leader James took up his position as Zurich s Head of Property and Specialty claims in During his time with Zurich he has worked in a number of operational roles where he has been responsible for delivering a world class claims service in the personal, commercial and corporate markets. James is a Graduate of Law and joined Zurich in 1997 on our Graduate Scheme.

15 Property marine, Fine art and specie Marine, Fine Art and Specie speciality claims are predominantly London Market focused and the expertise of our practice team reflects this. The London Marine claims team has responsibility for global claims, including managing hull, cargo, general average and salvage for Zurich offices worldwide, as well as being responsible for all piracy claims where there is a Zurich involvement anywhere in the world. We are recognised as one of the lead insurers in this market and our team have earned the respect of our industry peers. The Fine Art and Specie claims team handles all claims outside the US for the UK and the rest of the world. Fine Art and Specie claims require a high level of specialist knowledge so, in addition to our internal teams, we utilise an external panel of dedicated experts. This includes art surveyors, financial risk experts and our loss adjusting panel. Phillip Norwood Marine and Fine Art and Specie Claims Practice Leader Phil has over twenty years experience in handling all aspects of Marine claims, with a particular specialisation in cargo. He previously worked within Lloyds, as a Claims Broker and for a commodity trader, as well as other insurance companies. This experience gives him a unique insight to of all sides of the insurance process.

16 Property construction and engineering The Construction and Engineering claims team is comprised of experienced market facing specialists to ensure that we are able to lead with confidence on large losses, and to drive market participation in our claims strategy. Our dedicated team has the capability to handle high value, complex losses in a lead capacity. The average claims handler has in excess of twenty years experience. We attach huge importance to developing our employees. Our claims team benefits from ACII, BA and LLB qualifications. The team handle a wide range of claims under CAR, EAR and CPE covers from first advice to settlement, predominantly in a lead capacity. Their experience includes infrastructure (roads and rail), bridges, dams, schools, hospitals, power plants, harbour and other wet works, LNG receiving terminals, tunnels and various plant and equipment losses. In addition, the team have significant experience in handling third party property and bodily injury claims arising from these covers. We have established working relationships with a wide range of adjusting, engineering, accounting and law firms. We ensure that our customers have the most appropriate level of expertise at the right time. Matthew Porter Construction and Engineering Claims Practice Leader Matthew was appointed as Practice Leader for Construction Claims in Matthew specialises in complex international claims, with particular emphasis on tunnelling, heavy civils and defects losses, under Construction All Risks and Erection All Risks covers. For the last 10 years Matthew has worked specifically in construction insurance, developing specialist knowledge in this line of business and cementing market relationships.

17 Property energy The Energy claims team are familiar with the demands of managing some of the largest claims in the market. To complement the many years of technical knowledge built up with insurance companies, we have strengthened our expertise by recruitment from both the broker and client markets. This ensures that we can take a rounded view on a loss and strategy for settlement from all parties perspectives. The team is responsible for handling claims on many types of Energy policy wordings including Onshore, Mining, Power Generation, Operator s Extra Expense, WELCAR 2001, London Standard Platform Form, Business Interruption, Loss of Production Income and Third Party Liability. Using our experience we are able to provide valuable risk insights, helping customers manage their risks in an effective way. Whether Zurich lead the programme or play a supporting role, we use our expertise and relationships within the Energy market to provide a seamless service to our clients. We work closely with our peers, brokers and specialist loss adjusters to deliver the best possible claims solutions. We lead the market on high value, complex claims on an ongoing basis and are currently leading the market handling a circa USD 1 billion claim following the loss of a North Sea station in Leo Dixon Energy Claims Practice Leader Leo specialises in handling Energy insurance claims for retail clients, wholesale clients and captives around the world. His particular area of expertise is handling Offshore Energy claims on WELCAR 2001, E.E.D. 8/86 and Package policy wordings. In his career Leo has both prepared and presented Oil and Gas companies, insurance claims to the international insurance market. As both a claims broker and consultant, Leo has spent time in client offices in Europe and Africa briefing project teams, In-house counsel and risk managers on policy coverage matters. This experience gives Leo a unique insight when handling claims for Zurich having worked for and on behalf of the customers.

18 Property Zurich in action Property In December 2010 a fire crippled a steel plant in Europe; Zurich responded immediately and assembled an expert global team to proactively handle the claim. Within five days we confirmed that an interim payment would be made. Simultaneously Zurich assembled a wider team including loss adjusters, cause and origin experts and forensic accountants to gauge the potential of the loss and understand the business impact. With the support of Zurich, the customer was able to identify alternative production sites and repairs to the plant were completed within 12 months. Within 16 months we made our final payment, which brought the final claim payment to over EUR million. The Risk Manager for the customer stated: I wanted to convey my personal thanks for the pragmatic and supportive manner in which you and your appointed specialists approached the claim. Energy In this case, Zurich was the lead primary insurer for our customer. A claim valued close to USD 1 billion was notified. Our key claims objective was to ensure the customer has the funds quickly in order to sustain their business. In the 18 months subsequent to the incident, over USD 500 million had been paid to the insured. Loss of production income payments were made on a monthly basis. Working with our adjusters, we arranged for the issuance of one adjuster report to cover a four month reporting period, with backdated proofs of loss attached. Regular meetings ensured the information flow continued and no blockages arose. We look to gain the appropriate internal authorities at the earliest opportunity, often before payments are due, to ensure that when the time comes we are in a position to pass the funds to the customer. A recent claim saw Zurich pay our full layer (the third layer on the programme) within three weeks of the final information from the second layer who had taken a year to do the same. This payment was made without receipt of the final root cause analysis and a full assessment of subrogation opportunities. Construction and Engineering The Brisbane River in Queensland flooded on the 11th January A customer was in the process of constructing a multi storey office block. During the flood the ground floor and all three basements were flooded. These areas housed the electrical plant and switchgear for the building. Our nominated loss adjuster quickly visited the site and within a month we made the first interim payment to the insured. The claim proceeded with further timely interim payments to ensure the customer could proceed with the construction as smoothly as possible. Marine A Zurich-insured vessel was hijacked by Somali pirates. At the time, the vessel had a ten man crew consisting of Sri Lankan and Filipino citizens. Zurich reacted by quickly appointing experienced negotiators, experts, and legal advisers to provide around the clock support. This global network permitted Zurich to maintain legal compliance throughout proceedings. After months of tough negotiations, the vessel was released. No crew members were seriously injured and all returned safely to their families.

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20 Claims Excellence No.3 Technical Claims Expertise Specialist knowledge ACROSS THE KEY CLASSES OF INSURANCE We understand that whatever the risk, whatever the cover, it is the level of relevant insurance expertise behind it that will ensure the best possible outcome for our customers. That is why we pride ourselves on the depth and breadth of our knowledge of claims issues across Motor, Property, Casualty and Financial Lines.

21 Motor Overview Zurich Approved Repairer Network Motor Engineering Zurich Fleet Incident Assistance Third Party Claims Management Zurich in Action Property Motor Casualty Financial Lines Claims Services

22 Motor motor overview Zurich s motor claims operation in the UK consists of around 70 claims handlers across 2 locations Whiteley and Glasgow. We have a dedicated First Notification of Loss (FNOL) centre in Glasgow who process new claims notifications, ensure full information is captured and deploy a customer damage repair solution where appropriate. From a customer damage perspective, our primary aim is to ensure the vehicle is repaired as quickly as possible and minimise the time the vehicle is off the road. Our customers have a variety of preferences in this area and we are able to accommodate these. We use our own approved repairer network, the customer s choice of garage or via an accident management company, alternatively using Zurich s Fleet Incident Assistance solution. For fault incidents we have a dedicated Intervention Hub which seeks to contact the third party immediately following the accident report. The aim is to direct the third party into a Zurich approved repair and hire solution and avoid inflated credit hire costs. As the initial 24 hour period post-accident is absolutely key in the race to the third party, we urge all customers to report incidents as quickly as possible. We have an experienced team of Third Party Damage (TPD) and Third Party Injury (TPI) claims handlers. They will work with our customers throughout the liability decision making process to ensure that settlement terms are understood and agreed by all parties. We have a number of tools that enable us to value a claim and this, coupled with strong negotiation skills, facilitates a positive outcome for our customers. We do endeavour, where appropriate, to settle claims without the requirement for litigation as this adds cost into the claims process. However, if we believe a case should proceed to trial we have a panel of renowned legal firms who will represent your interests. We also work with our customers preferred choice of legal representatives where appropriate. Fraud In the current economic climate fraud is a huge consideration within the claims environment. We have dedicated Fraud Coordinators who are supported by a network of Fraud Champions across our teams. We are able to deliver significant fraud detection and avoidance across our portfolio. Where there is a suggestion of systemic fraud or organised crime we have a centralised Claims Investigation Unit who provide expert support. In 2012, Zurich were delighted to be recognised with an Insurance Times UK Claims Excellence award for Fraud Prevention Initiative of the Year. Alastair Thomson Motor Claims Practice Leader Alastair holds a degree in Finance with Marketing and joined Zurich motor claims in During his time with Zurich he has worked in a number of operational claims management roles and also played a significant part in delivering the Claims Transformation Programme. He has also been on a number of international assignments.

23 Motor Zurich approved repairer network (Zarn) Across Zurich we arrange repairs for thousands of vehicles a year. Through our market leading vendor management processes we have built up a leading approved repairer network to make sure you get a local, convenient and high quality service which helps to manage both your repair costs and operational cost by reducing vehicle down time. Car accidents are not convenient Our vehicle is our business We need our vehicles on the road, generating income So we make the repairs as convenient as possible... We will collect and deliver your car or van to you or your business base. Our network has extensive mobile repair capabilities to enable us to carry out repairs on your site. We can provide courtesy vehicles during the repair. Your fleet manager can track repair progress on line. Our repair network has the capability to repair HGVs and covers a wide range of manufacturer approvals. So we offer a high quality repair service... We offer a three year guarantee or match the manufacturers warranty, whichever is longer. We only use manufacturers parts. All of our UK repairers have the British Standards Institute kitemark, PAS 125. Our network has approval from most manufacturers for bodywork repairs. Our network is subject to regular audit to ensure the highest standards of workmanship and the best methods of repair are maintained. So we make sure that the repair is as speedy as possible... Repairers can start work straight away; they do not have to wait for an engineer to visit. For some repairs we can offer a mobile solution at your premises and complete repairs within a day. We have our own team of motor engineers who can carry out both, on-site inspections, and desk based inspections using images provided by our repairers. Zurich has a team dedicated to managing our suppliers through detailed performance benchmarks to ensure that we all receive the right service. key customer benefits: Convenience at the time of a loss. Quality guaranteed repairs. Peace of mind.

24 Motor motor engineering Keeping the business moving is critical to our customers and we provide assistance to minimise down time for your fleet. We have our own in-house motor engineering team who can ensure that repairs are completed swiftly. Our team of field motor engineers carry out physical inspections of the vehicle at the customer s or repairer s premises, agree costs and authorise repairs. Where the cause of damage is unknown or suspicious, we will instruct our automotive forensic team to conduct a full investigation into the cause. Our forensic team specialise in thermal (fire), mechanical and electrical damage. These investigations will often provide sufficient evidence to enable us pursue recoveries from manufacturers and other parties involved, thereby reducing the customers risk profile. The field motor engineers are supported by an in-house function. Our engineers are able to agree and authorise repairs based on images provided by our Approved Repairer network members which enables them to commence repairs at the earliest opportunity. In the event of a total loss, we have a team that works in tandem with our customers and their fleet suppliers to agree valuations at the earliest convenience. This will reduce ongoing or outstanding lease and contract hire arrangements. Finally, the motor engineers unit are utilised to complete audits on our approved repairers to ensure both the customer and Zurich are receiving the highest level of service and value.

25 Motor Zurich Fleet incident assistance As part of our ongoing commitment to ensure an efficient and cost effective accident management service for customers, Zurich has entered into partnership with Nationwide the UK s largest and most trusted vehicle body repairer. Fresh approach to accident management We aim to: Reduce repair time through process efficiency and a fully integrated mobile repair solution. Control spiralling third party costs through seamless intervention provision. Drive up repair quality and safety of repairs through use of only PAS 125 accredited bodyshops. Provide transparent pricing and management information to our fleet customers there are no hidden referral fees or commissions. Provide tailored incident management solutions for our fleet customers. Our solution Working with our partners, we are able to offer a complete end to end accident repair and management service for corporate fleets. Our understanding of the entire accident management process means we are able to handle the process quickly and in a professional manner. Expert, seamless and dependable approach to help keep your fleet on the road. 180-strong repair network, spanning the country. Over 70 wholly owned repair centres. A fully integrated mobile repair service. Incidents can be reported day or night. The call centre team are trained to assist drivers with care and consideration. Benefits of the scheme Transparency concerning the cost of repairing fleet vehicles. Market leading repair turnaround times, reducing the impact of incidents to the business. Access to replacement vehicles with no commission kept by the insurer or accident management provider. Access to bespoke management information. Collection and repair of the car in a PAS 125 body shop that is situated conveniently for you and has the latest technology to ensure safe, guaranteed quality repairs.

26 Motor third party claims management When an incident occurs, a third party can seek to recover numerous aspects of the damage, ranging from repair costs to hire charges and personal injury claims. These types of claim have become increasingly complex, with a restrictive legislative environment. The real savings and benefits for the customer can be found at the first notification of loss stage where we can control third party claim costs. Our intervention team will seek to contact the third party if our driver is at fault and offer to manage their claim. This has proven cost benefits compared to third parties who are referred to lawyers and credit hire companies. We have market leading software available to ensure a consistent approach is adopted with the leading providers of credit hire. The third party injury team deal with claims submitted via the Ministry of Justice portal and larger complex losses. Once liability is established, we are able to offer rehabilitation and other medical services to speed up the recovery of the injured party and contain claim costs. For claims where there is partial or no responsibility on the part of our driver, we have a dedicated recovery team who will explore all avenues to recover losses paid out on customers behalf.

27 Motor Zurich in action Forensic Motor Engineering Our engineer determined that a vehicle had caught fire due to a wiring issue in production. We alerted the manufacturer and they issued a product recall and reviewed their production processes across Europe. This led to a GBP 6,000 saving on the particular claim, but also ensured there was no further exposure to this type of risk following the recall. Motor Engineering Following a major incident as a result of an arson attack, 22 tractor units were severely damaged. 14 vehicles were total losses, and 8 were repairable. Forensic and accidental damage inspections arranged as soon as the site was accessible. We arranged for the affected vehicles to be removed from the site by salvage agents and repairers. We also arranged for hazardous debris on site to be removed by the salvage agent using specialist equipment. The site was cleared and returned to the customer within 10 working days of the incident being reported. All of the vehicle documentation was collated and a settlement agreed with the customer and broker at one meeting.

28 Claims Excellence No.3 Technical Claims Expertise Specialist knowledge ACROSS THE KEY CLASSES OF INSURANCE We understand that whatever the risk, whatever the cover, it is the level of relevant insurance expertise behind it that will ensure the best possible outcome for our customers. That is why we pride ourselves on the depth and breadth of our knowledge of claims issues across Motor, Property, Casualty and Financial Lines. Areas of Specialisation

29 Complex Liability Claims Inspectors Occupational Disease Medical Management Centre Zurich in Action Property Motor Casualty Financial Lines Claims Services

30 Casualty complex liability Zurich s complex liability claims team manage some of the largest claims in the market. Their combined portfolio will has an estimated potential value of over half a billion pounds at any one time. The team not only deal with the large damage and financial loss claims, but also the Difference in Conditions and Different in Limits claims arising from the Master contract on our International Programmes from Zurich business. Our strategy is to drive these complex claims to settlement at the earliest opportunity. To enable this we have access to market leading experts including lawyers, counsel, loss adjusters and forensic accountants. We understand that our customers will often have a large financial interest in the claim through either captive or self insured retention arrangements. We will engage with our customers to agree the claims strategy, both utilising and protecting your own customer relationships. In addition, we support our customers in making operational decisions through discussions on loss scenarios and policy response simulations. Chris Brookes Casualty Claims Practice Leader Chris Brookes is responsible for leading the Complex Casualty Claims team. Chris has been with Zurich for 25 years, during which time he has worked in a number of senior technical and operational roles within the organisation. His responsibilities have spanned across Corporate, Commercial and Municipal markets and he has many years experience in the management of high value and complex Employment, Public and Product Liability claims.

31 Casualty claims inspectors Whilst we have an exceptional team of handlers in our offices, some claims require on-site investigation. Many competitors outsource this function in its entirety, but we believe that there is a significant benefit to the claims cost and customer relationship in having our own claims inspectors. The UK Claims Inspector team consists of a number of vastly experienced professionals who provide coverage throughout the UK. The inspectorate has ISO certification, demonstrating their rigour in systems, processes and depth of knowledge. We will instruct a claims inspector on the majority of Employers Liability claims and complex Public Liability claims. The completion of face to face investigations ensures that an accurate claims profile is created and decisions are taken faster. Pending the Ministry of Justice reforms there are likely to be changes in the way liability claims are dealt with in the UK and our Inspectorate will ensure that we are ready for these challenges. Across our global claims network we have access to specialist liability adjusters enabling us to replicate the UK model across territory. Customers benefit from our internal and external investigators through their technical expertise and the protection this gives against third party claims. In addition, our Claims Inspectors build knowledge and understanding of the customers business, enabling them to offer real insights into the customer s risk. key customer benefits: Bottom line claims cost savings, protection and enhanced fraud protection. One of our major customers said: Zurich Claims Inspectors understand our business; not just insurance claims.

32 Casualty occupational disease Zurich is the largest Occupational Disease claims handler in the UK, responsible for over 10,000 cases per year. We have the right expertise to deal with these often technically complex claims. We have a team of over 60 dedicated disease experts. In addition, we have partnerships with specialist solicitors to ensure that litigation is dealt with in the best possible way. The team are backed up by a market leading policy archive unit that enable the Occupational Disease Centre (ODC) to confirm cover periods as quickly as possible. Our ODC sees significant volumes of all of the historic disease types, such as mesothelioma and deafness, and they constantly research potential new areas, such as acoustic shock and mobile telephone tumours, to ensure that we are ready for any potential claims. Because of our size, we take a robust stance on litigation and have been involved in or led most of the high profile disease court cases in the last few years, including Baker v Quantum. In the past year, we have developed an award winning approach to disease claims fraud detection. This is an industry first, leading to significant positive results. We have set up an industry wide group to share knowledge of fraud methods in the disease environment, to further improve detection rates. All of this means that at a time of overall claims inflation, we are actively controlling the cost of disease claims. Our centre has over 60 staff with a high level of disease claims experience.

33 Casualty medical management centre Rehabilitation is a key tool in managing injury claims. At Zurich, we have a team of Occupational Health Advisors (OHAs) who can intervene in injury claims in a number of ways. These OHAs are embedded directly within our claims team. For the majority of claims where there is a liability, we offer rehabilitation to claimants where this is likely to result in a quicker recovery. This in turn leads to a reduction in potential claim costs and can bring an earlier resolution to the claim. The earlier a case can be reported to Zurich, the greater the savings we can achieve. Our OHAs assess the requirements and potential benefit in each case and arrange appropriate medical treatment, ranging from physiotherapy to counselling, speedier MRI scans to private operations. In addition to arranging medical services, the OHAs provide a: valuable technical function to assess the need for private medical treatment suggested by claimants and their solicitors peer review process for medico legal reports supporting the claims handlers technical ability, with detailed medical knowledge to spot anomalies and inaccuracies within the report. The Medical Management team help rehabilitate 5000 injured employees per year, helping speed up their return to work where possible and creating a positive impact on the outlook of the employee. This in turn has a positive impact on any subsequent claims. Physiotherapy intervention on motor claims saves an average of over GBP 200 per case. Using our buying power for medical treatments means that we can normally source recommended treatment at a lower price than the claimant s solicitors. Using medical experts to review evidence disclosed by claimants lawyers saves an average of over GBP 400 per case. Zurich Rehabilitation For our largest customers with a significant volume of accidents we can offer Zurich Rehabilitation. This is an innovative approach to injury management which brings together traditional insurance, risk management and injury management to help employees return to work sooner. It s all about working closely together to help manage the cost of business risk. Zurich Rehabilitation is suitable for most injuries arising from workplace accidents and offers immediate access to professional medical expertise. As well as demonstrating a commitment to the wellbeing of employees, this early intervention can help to reduce the cost of accidents to a business. For example, loss of earnings can form a large part of a claim. By reducing the length of time an employee is absent from work, Zurich Rehabilitation can have a big effect on the final costs.

34 Casualty Zurich in action Complex Claims This claim involved a manufacturer of specialist paints which were supplied for use in tank storage lining. A reaction from chemicals in the paint with the stored acid caused the tank acid to turn pink, resulting in claims from the owners of the acid, the tank owners and also the company that rented the tanks. There were further complications as a further consignment of acid was scheduled to arrive from China. This acid needed to be stored in the tanks that were not yet lined due to the delays of the previous issue. A claim was made by the various parties who allegedly sustained losses in excess of GBP 3 million. Zurich quickly instructed lawyers and technical experts to conduct a thorough investigation into the matter. Following detailed discussions with our expert, in order to mitigate costs, we took this case to mediation. Our case handler was able to utilise the evidence obtained and bring this matter to conclusion for less than a third of the sum initially claimed. French Product Liability Losses Coverage Gaps French legal code determines that when French domiciled product liability policies contain an occurrence faite dommageable trigger that legal liability devolves upon the manufacturer as at the date of supply of the product and not the date of actual loss. For our customer this created a potential gap in cover, with the insurer at the material time of sale of the product refusing to indemnify and the local Zurich France policy not being triggered. Zurich developed a solution for our customer by providing Difference In Conditions coverage to the local Zurich French policy, thus enabling the customer to release the EUR1 million monies held in their P&L and audited accounts for potential liabilities, whilst their coverage dispute with the prior insurer is resolved. Rehabilitation A 50 year old factory worker sustained a groin injury while moving heavy machinery. His GP diagnosed a left inguinal hernia. The injured employee was unable to remain at work until a surgeon saw him and the hernia was surgically repaired. The local NHS waiting time for this procedure was over 12 months. The employer referred the case to Zurich and the Rehabilitation Case Manager arranged a private referral to a surgeon. As a result, the operation was successfully performed just two months after the accident and the employee returned to full duties at work two months later. By reducing the time off work from 14 months to 4 months, Zurich s intervention resulted in a GBP 12,700 cost saving (saving on sick pay of GBP 14,400, less the treatment costs of GBP 1,700). Additionally, the employee received treatment 10 months earlier than the NHS could have provided and the employer saved on the considerable hidden costs they would have incurred during that period. Case Study When a customer experienced a significant incident involving the collapse of scaffolding, Zurich Rehabilitation was there to provide support and assistance to those affected. The accident resulted in the fatality of one employee with many others witnessing the event. In response to the incident, Zurich arranged for psychological support, providing on-site group debrief counselling with a Clinical Psychologist, follow-up one to one counselling with individuals particularly affected by the event and a telephone help line available 24 hours per day to provide additional support. Whilst this was an extremely unfortunate event, by working in partnership with our customer we ensured that the impact was minimised and that employees felt adequately supported through a very difficult time. This response helped to ensure that the relationship between employee and employer was strengthened and the experience shared rather than proving to be destructive to the employment relationship.

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36 Claims Excellence No.3 Technical Claims Expertise Specialist knowledge ACROSS THE KEY CLASSES OF INSURANCE We understand that whatever the risk, whatever the cover, it is the level of relevant insurance expertise behind it that will ensure the best possible outcome for our customers. That is why we pride ourselves on the depth and breadth of our knowledge of claims issues across Motor, Property, Casualty and Financial Lines.

37 Financial Lines Overview Directors and Officers, Commercial Crime, Professional Indemnity and Financial Institutions Zurich in Action Property Motor Casualty Financial Lines Claims Services

38 Financial Lines Financial lines overview Our Financial Lines claims hub is based in London. The team comprises of both qualified solicitors and experienced insurance professionals. The team is split into specialists aligned to the main lines of financial lines insurance Commercial Crime, Financial Institutions, Directors and Officers and Professional Indemnity. This ensures the appropriate experts are allocated to the case in hand. The team is supported by a network of lawyers and adjusters from the UK and across the globe. We look to work on a collaborative basis with our customers in order to drive a transparent strategy, ensuring the appropriate outcome for all parties. Zurich delivers this with a team of over 15 individuals who focus purely on professional indemnity from both a UK and worldwide perspective. William Anderson Financial Lines Claims Practice Leader William is responsible for the running of the Professional and Financial Lines Claims Team, which handles claims from Commercial Professional Indemnity, Financial Institutions, D&O/EPL, Political Risk, Trade Credit and Commercial Crime. William has worked in the insurance industry for 20 years. He joined Zurich as a Claims Adjuster handling Professional Lines claims on an open market and binder basis.

39 Financial Lines directors and officers, commercial crime, professional indemnity Financial Lines insurance for both Commercial and Financial Institutions encompasses a range of covers: directors and officers is a severity driven book of business and the impact is normally felt at the highest level of the organisation. We are not just looking at the potential high value damages sought, but also the impact of regulatory proceedings in multiple jurisdictions. Actions brought against senior management can involve their personal assets and impact their liberty, so it is vital that you have the right claims support in this highly technical area. commercial crime is a sensitive area with the potential of overlapping criminal investigations and formal claim investigations. Again, strong claims support is required, with a robust network of loss adjusters to help quantify any potential losses. In difficult and uncertain economic times our customers, as professionals, are often looked upon when things go wrong. Our professional indemnity team is keen to provide supportive technical claims advice to help navigate you through potential challenges against your business.

40 Financial Lines Zurich in action directors and officers UK master policy for parent company, with a Mexican policy for locally domiciled subsidiaries A multinational company and four of its directors were subjected to an investigation in Mexico in relation to payments of income tax and value added tax by one of the Insured s subsidiaries. Strict laws are in place regarding the payments of these taxes, which must be adhered to in all countries a multinational operates in. Formal charges were brought against the company and one of its directors. In this instance the charges were covered by the Mexican D&O policy in the local territory, according to local terms and conditions. professional indemnity UK master policy, with a local policy in China for subsidiaries The insured, an architectural firm based in London, had a subsidiary based in Beijing. The Beijing office entered into a contract to provide architectural services for a local construction firm, subsequent to which the Beijing office was sued for the breach of its professional duties. Coverage under the local policy was immediately effective and paid defence costs which culminated in a judgement awarded in favour of the Beijing office.