Professional Indemnity



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Allianz Global Corporate & Specialty Professional Indemnity Capability Statement Protecting your clients with a range of professional indemnity products.

Professional Indemnity at a glance In an increasingly litigious business world, professionals need the freedom to act and advise in the best interests of their clients without fear of unintended consequences. Professional Indemnity insurance Professional Indemnity insurance from Allianz Global Corporate & Specialty (AGCS) provides that freedom: a global product range covering national and international professional liability exposures, and protecting managers and professionals from losses arising from a civil liability claim in the performance of professional services. Our suite of products are supported by an expert team who understands that this is a fast-moving market, which needs a responsive and up-to-date approach based on a detailed understanding of emerging risks and legal developments. This is why our underwriting and claims teams have a wide range of specialist expertise including law, forensic accounting, risk management, and corporate governance. The majority of our claims experts are lawyers, and in the event of a claim we can also call upon some of the legal industry s leading firms to support our clients. Financial strength Allianz Australia is rated AA- (stable outlook) by Standard and Poor s and is able to provide up to $20 million any one claim on a costs exclusive basis. Global strength Allianz Global Corporate & Specialty Financial Lines is part of a global product line which allows us to leverage our global capabilities with regard to: Product development of new and innovative products (Allianz Global Corporate & Specialty has a large experienced global product development team). Actuarial pricing of individual and portfolio risk exposures at a global level. Underwriting appetite (our global perspective allows us to underwrite large and more volatile risks and customer segments because these exposures do not need to be balanced at a country or regional level, and benefit from our global portfolio diversification). Experience in multiple jurisdictions, which provides us with a deep talent pool and the ability to underwrite complex international accounts. In addition, if local policies need to be provided in non-admitted jurisdictions, Allianz Global Corporate & Specialty offers a market-leading service in this regard. Systems, processes and infrastructure to efficiently manage volume business.

Broad underwriting appetite and coverage Allianz Global Corporate & Specialty Financial Lines is expanding its underwriting appetite. Our Professional Indemnity products provide a robust and flexible solution for traditional professions such as architects, engineers, accountants, estate agents, agricultural consultants, as well as non-traditional professions in technology and multimedia. Profession Engineers Architects Allianz Global Corporate & Specialty Underwriting Appetite All risks and segments on a primary and excess basis. All risks and segments on a primary and excess basis. AFSL licensees (financial planners) on a primary and excess bases. Financial services Credit licensees (mortgage and finance brokers) on a primary and excess basis, including schemes and facilities with adequate demographic and loss information. Accountants on a primary and excess basis, including schemes and facilities with adequate demographic and loss information. ** The following segments are outside of the Allianz underwriting appetite: Professional indemnity insurance for medical and allied health professionals. The big four audit firms. Lawyers Miscellaneous professions Real estate agents Accountants Government Insurance brokers Agriculture Defamation Prefer primary (compulsory layer) and excess layer programmes, but will also consider individual excess layer risks with adequate pricing, depending upon the attachment point. All risks and segments on a primary and excess basis, including schemes and facilities with adequate demographic and loss information. All risks and segments on a primary and excess basis, including schemes and facilities with adequate demographic and loss information. Will consider valuers, but only if underlying fee base and limit of liability allow sufficient premium to be charged for exposure. All risks and segments on a primary and excess basis, including schemes and facilities with adequate demographic and loss information. We can also insure affiliates of the big four accounting firms that are not named as a Policyholder. All risks and segments on a primary and excess basis, including alternative risk transfer and captive programmes. All risks and segments on a primary and excess basis, including schemes and facilities with adequate demographic and loss information, but excluding the major international brokers. All risks and segments on a primary and excess basis, including schemes and facilities with adequate demographic and loss information. All risks and segments on a primary and excess basis, including schemes and facilities with adequate demographic and loss information. Our appetite includes talk show radio, television broadcasting and entities with international exposure.

Professional Indemnity for construction projects The ability to offer capacity on a primary or excess basis. A broad appetite for complex projects (including infrastructure, bridges, tunnels, ports and terminals, and mines). No restrictions on the length of the project with the capability to insure for periods exceeding ten years. Global risk consulting through Allianz Risk Consulting (ARC), with more than 260 of the insurance sector s most seasoned engineers. A strong cross line capability, including engineering and construction, construction liability and marine insurance, to ensure that the potential for gaps between products or insurance periods are reduced or eliminated.

Professional Indemnity coverage Allianz Global Corporate & Specialty offers a comprehensive range of primary professional indemnity products. LONG TERM PERSPECTIVE Portfolio diversification and selection Understanding of risk exposures Allianz Global Corporate & Specialty is building an underwriting platform with a long-term perspective, so brokers and clients can rest assured that they will receive consistent and secure coverage. Documentation of cover Pricing Core cover includes: Allianz Global Corporate & Specialty Coverage Insuring clauses Insuring clause clarifications Extensions Optional Extensions A broad civil liability insuring clause covering both damages and defence costs (not tied back to a breach of professional duty). Inquiry and pre-inquiry costs (sub-limited to $500,000) Defamation Breach of Privacy Intellectual Property Joint Ventures Loss of Documents Misleading or Deceptive Conduct Vicarious Liability Administrators and executors Advancement of defence costs Automatic cover for new subsidiaries (subject to qualifying criteria) Continuous cover (including the ability to provide extended continuity) Court attendance costs (sub-limited to $500 per person per day) Domestic partners Emergency defence costs (sub-limited to 10% of the limit of liability) Fraud and dishonesty Intellectual property Mitigation costs (sub-limited to 10% of the limit of liability) Non-Renewal Discovery Periods (60 days or 12 months on guaranteed terms) Public relations expenses (sub-limited to $50,000) Run-off after a transaction (84 months) Severability and non-imputation (including a waiver of insurer rights to cancel the policy in the event of non-disclosure) Breach of Privacy (sub-limited to $100,000) Employment practices liability (sub-limited to $50,000) Fidelity insurance (sub-limited to $50,000) Officers Liability (sub-limited to $500,000) Workplace Statutory Liability Insurance (sub-limited to $250,000) In addition to the above Allianz Global Corporate & Specialty also offers a suite of tailored products for key target professions and for specific project professional indemnity. Please refer to the applicable product wordings for more information.

Schemes, facilities and program business The Allianz Global Corporate & Specialty team has the expertise and capability to ensure superior coverage, pricing and service for schemes, facilities and program business. Capabilities A broad range of profession specific products, easily able to be tailored for a particular scheme, with the option to co-brand or white label products. A global actuarial team, with deep knowledge of schemes and facilities in other jurisdictions to quickly and accurately estimate pricing on complex insurance programs (including excess layer and stop loss programs). Realistic and competitive pricing. A local claims team to deliver prompt efficient claims service. A full lifecycle Sunrise system, allowing us to automate rating and the issuance of policy documentation. Financial Strength Allianz Australia is rated annually by Standard & Poors, the global rating agency. The current rating is : AA- Stable Outlook

Global Programs We have established a reputation as a leading provider of international insurance solutions for corporate clients with international multilocation exposures. The effective management of global risks is our core business. This is why Allianz Global Corporate & Specialty has been structured and resourced specifically to meet the needs of international companies, whether they are operating in Austria or in Zambia, or indeed in more than 160 other countries worldwide. We have established a reputation as a leading provider of international insurance solutions for corporate clients with international multilocation exposures. The number of global programs managed by AGCS is almost: 2000 Our experience speaks for itself: We currently manage almost 2,000 such global insurance programs for our clients, coordinating 15,000 local policies, covering a wide range of risks. Our worldwide systems and infrastructure are built to handle the increasingly complex challenges of international tax regimes, crossborder payments and local regulatory demands delivering local compliance and global portfolio transparency for our clients. Our network combines Allianz-owned insurance companies in more than 70 major countries with selected network partners in others, giving an unrivalled combination of own office reach with costeffective partners in others. The result is international insurance coverage in more than 160 countries. ALLIANZ GLOBAL CORPORATE AND SPECIALTY AND PARTNER OFFICES

Claims Management The response to a claim is the key test of any insurer, and Allianz Global Corporate & Specialty can support clients with active claims management for all professional indemnity claims. Local Claims Service With new risks and exposures emerging at an international level, along with increased local regulation, AGCS Pacific s local claims team has extensive knowledge and experience in handling claims both in foreign jurisdictions and locally. We offer consistent and efficient service to clients and brokers based on: An integrated team involving underwriting, risk consulting and other client service teams. Transparency and communication. Local delivery with global support. A flexible and a proactive approach. Technical insight and experience. Cooperation to find solutions. Furthermore, through the close cooperation between our claims, underwriting and risk consultancy teams, our claims specialists are able to keep abreast of the latest claims trends as well as potential losses. AGCS has an established global network spanning 150 countires that is supported by 450 experts. Global Claims Management To ensure consistent quality and transparency for the client, no matter the location, AGCS has established a global claims philosophy supported by claims handling systems and procedures. Supported by more than 450 experts in 150 countries around the world, clients can expect excellent claims service supported by the financial strength to cover our obligations to our clients.

Other Financial Lines Products Allianz Global Corporate & Specialty offers the following additional Financial Lines products and is continually developing new and innovative coverage solutions: Other Financial Lines Products Commercial Crime Insurance Cyber Liability Insurance Directors and Officers Liability Insurance Employment Practices Liability Insurance Financial Institutions Crime Insurance Insurance for Financial Institutions Investment Manager Insurance Prospectus Liability Insurance Reputation Protect Insurance Statutory Liability Insurance Trustees Liability Insurance

Allianz Australia Limited 2 Market Street Sydney NSW Australia Phone: +61 2 9390 6333 Fax: +61 2 9390 6488 www.allianz.com Disclaimer & Copyright Copyright 2014 Allianz Australia Ltd. All rights reserved. The material contained in this publication is designed to provide general information only. Whilst every effort has been made to ensure that the information provided is accurate, this information is provided without any representation or warranty of any kind about its accuracy and Allianz Australia Limited cannot be held responsible for any mistakes or omissions.