[POLICYHOLDER] [POLICY NO]: EXAMPLE CLAIMS REVIEW REPORT REPORTING PERIOD 2004 2006 YEARS OF ACCOUNT (as at 20 th July 2007) QBE European Operations is a trading name of QBE Insurance (Europe) Limited, no. 01761561 ( QIEL ), QBE Underwriting Limited, no. 01035198 ( QUL ), QBE Management Services (UK) Limited, no. 03153567 ( QMSUK ) and QBE Underwriting Services (UK) Limited, no. 02262145 ( QSUK ), whose registered offices are at Plantation Place, 30 Fenchurch Street, London, EC3M 3BD. All four companies are incorporated in England and Wales. QIEL and QUL are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. QUL is a Lloyd s managing agent. QMSUK and QSUK are both Appointed Representatives of QIEL and QUL.
Contents COMMENTARY APPENDIX 1 EXECUTIVE SUMMARY APPENDIX 2 LARGE LOSS SUMMARY APPENDIX 3 CLAIMS DETAIL BY DRIVER/DRIVER AGE APPENDIX 4 CLAIMS DETAIL BY ACCIDENT CATEGORY APPENDIX 5 CLAIMS DETAIL BY TOTAL COST APPENDIX 6 INDIVIDUAL CLAIMS LISTINGS
Commentary Appendix 1. Appendix 2. Appendix 3. Appendix 4. Appendix 5. Appendix 6. Providing an overview of the performance to date, detailing core information. Shows details of larger losses, where the paid and outstanding exceeds 10,000 Provides details of drivers who have been involved in 2 or more accidents and we have also provided an analysis by age. Highlighting the incidents which have resulted in the majority of claims expenditure. Illustrates the claims experience by total cost showing the frequency and percentage of the overall cost. Provides a summary of all the claims reported and upon which this report is based. There have been: Three losses of a total cost of 10,000 or more in the 2004/2005 period of insurance Two losses of a total cost of 10,000 or more in the 2005/2006 period of insurance Five losses of a total cost of 10,000 or more in the 2006/2007 period of insurance. The largest loss in the 2004/2005 period of insurance (claim number JBA 0893889L) accounts for 29% of total cost of the claims. The largest loss in the 2005/2006 period of insurance (claim number JBA 0955553G) accounts for 26% of total cost of the claims. The largest loss in the 2006/2007 period of insurance (claim number JBA 1030951H) accounts for 13% of total cost of the claims. Number of days delay in reporting incidents Year Days Delay 2001 27 2002 26 2003 40 2004 22 2005 22 2006 19 Benefit will be gained from the very early reporting of all new incidents allowing QBE to have more control over the cost of own damage (AD) and third party (TP) claims. Claim reporting within the first 24 / 48 hours to QBE should be encouraged
Appendix 1 Executive Summary
Executive Summary Year 2004 2005 2006 Total Vehicle Years 105.5 98.38 98.63 302.51 No. of Claims 51 60 63 174 Accident Frequency 48% 61% 64% 58% Claims Cost 133,118 148,428 178,641 460,187 Cost Per Claim Cost Per Vehicle 2,610 2,474 2,836 2,645 1,262 1,509 1,811 1,521 Accident Frequency / Claims Cost Per Vehicle Accident Frequency (%) 70 60 50 40 30 20 10 0 2004 2005 2006 Years 2,000 1,500 1,000 500 0 CCPV ( ) Accident Frequency Claims Cost Per Vehicle
Appendix 2 - Large Loss Summary
LARGE LOSS SUMMARY - 2004 YEAR Claim Number Accident Date Driver Amount Comment JBA 0893889L (Open) 28.07.04 Hudd K 38,305 Multiple vehicle accident. A Third Party (TP) car at the head of a row of traffic stopped and the following transit van struck it in the rear. We then collided with the rear of the transit van. We have received claims from the transit van driver for the repair of his vehicle and whiplash injuries sustained. Evidence suggests we are not fully liable for damages to the transit van and injuries sustained however negotiations with TP solicitors continue. CJL 0894443D (Closed) 31.07.04 Crew N 18,734 Insured vehicle overturned on roundabout causing damage to a lamp post and the crash barrier. Our vehicle was written off in this accident. CDG 0897756Q (Closed) 21.08.04 Wilcox V 15,277 Insured vehicle pulled out from a side road and collided with a Third Party Motorcycle. The motorcyclist suffered a broken leg. LARGE LOSS SUMMARY - 2005 YEAR Claim Number Accident Date Driver Amount Comment JBA 0955553G (open) 10.08.05 Court W 38,050 Insured vehicle collided with a Third Party vehicle as the Insured driver changed lanes on the M25. Whiplash claims and claims for psychiatric injuries from the TP driver and his two passengers are all under continuing negotiation.
LARGE LOSS SUMMARY - 2005 YEAR (Continued) Claim Number Accident Date Driver Amount Comment CYB 0977136N (Open) 09.12.05 Jones A 19,470 Insured vehicle pulled out from a side road and collided with a Third Party Mercedes. TP car hire costs are considerable and are the subject of further negotiation. LARGE LOSS SUMMARY - 2006 YEAR Claim Number Accident Date Driver Amount Comment JBA 1030951H (Open) 10.09.06 Williams R 23,976 Insured collided with the rear of a Third Party vehicle on the M5 motorway. Whiplash claims have been submitted from both the TP driver and his passenger. LDL 1033416L (Open) 13.09.06 Perrett R 18,248 Changing Lanes accident in which Insured driver caused a Third Party car to collide with the central reservation as we moved over. The TP car then swerved across the road and collided with a TP Lorry travelling in the inside lane. The TP car passenger has suffered whiplash type injuries and an element of post traumatic stress disorder. MBA 1046791J (Closed) 09.11.06 Kerton D 12,954 Insured vehicle (Mercedes) struck parked / stationary vehicle. Own damage claim concluded and no TP claim to consider MBA 1078786Q (Open) 30.01.07 Wakefield T 12,629 Insured vehicle reversed into TP wall. Investigations into quantum continuing with TP loss adjusters
LARGE LOSS SUMMARY - 2006 YEAR (Continued) Claim Number Accident Date Driver Amount Comment MBA 1028994X (Closed) 07.08.06 Crew N 12,577 Insured reversing caused immobile property damage. Own damage and TP claims settled earlier this year
Appendix 3 - Claims Detail by Multiple Offender / Driver Age
Drivers with Multiple Accidents 2004 YEAR Name Number of Accidents Total Cost Akkurt R 2 8,930 Honeybun R 2 2,449 Hudd K 2 38,948 Parfitt S 2 2,781 Sinnott M 2 1,920 Smith P 2 1,131 Wilcox V 2 15,259 Yates D 2 1,152 2005 YEAR Name Number of Accidents Total Cost Ansell B 2 1,623 Bown K 2 50 Court W 2 38,800 Crew N 3 3,002 Kent T 2 414 Mead C 2 1,310 Perrett R 3 15,192 Person D 2 2,623 Sinnott M 2 1,070 Unknown 2 167 2006 YEAR Name Number of Accidents Total Cost Burge M 2 4,768 Crew N 2 13,826 Crook D 3 6,463 Gilham R 2 2,855 Glassenbury F 2 5,667 Lane S 5 3,668 Mill D 2 203 Perrett R 2 20,053 Sinnott M 2 6,574 Tiley C 3 4,266 Unknown 2 180 N Crew 5 incidents in last 2 years of account R Perrett 5 Incidents in last 2 years of account M Sinnott 6 Incidents in last 3 years of account
Analysis by Driver Age 2004 2005 2006 Category No. Cost No. Cost No. Cost Under 25 1 18-1 769 0 0 25-29 3 12,780 5 14,634 6 6,255 30-39 11 8,468 10 9,316 10 34,855 40-49 16 59,041 14 11,550 17 48,422 50-59 9 13,110 19 103,237 19 66,149 60-75 4 3,923 8 6,921 6 12,431 Unknown 7 35,814 3 2,001 5 10,529 Cost of Losses 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 2005 2006 Under 25 25-29 30-39 40-49 50-59 60-75 Unknown Number of Claims 20 18 16 14 12 10 8 6 4 2 0 2004 2005 2006 Under 25 25-29 30-39 40-49 50-59 60-75 Unknown
Appendix 4 - Claims Detail By Accident Category
Analysis by Accident Categories 2004 2005 2006 Accident Category No. Cost No. Cost No. Cost Ran into rear of TP 4 41,953 1 7,042 5 39,148 Hit immobile property 10 24,840 13 18,020 15 32,302 Insured from side road 2 15,277 0 0 0 0 Hit whilst parked 3 10,494 1 0 2 1,745 Reversed into TP 5 9,304 7 5,591 8 25,472 Hit parked TP 9 9,106 12 25,577 16 41,389 Insured pulling out 1 350 1 19,470 1 1,000 Changing lanes 1 0 6 48,489 2 20,140 Other 16 21,795 19 24,239 14 17,444 Hit Immobile Property 38 Incidents Incurred Cost 75,162 Hit Parked Third Party 37 Incidents Incurred Cost 76,072 Changing Lanes 9 Incidents Incurred Cost 68,629 Cost of Losses 35% 30% 25% 20% 15% 10% 5% 0% 2004 2005 2006 Ran into rear of TP Hit immobile property Insured from side road Hit whilst parked Reversed into TP Hit parked TP Insured pulling out Changing lanes Other Number of Claims 20 18 16 14 12 10 8 6 4 2 0 2004 2005 2006 Ran into rear of TP Hit immobile property Insured from side road Hit whilst parked Reversed into TP Hit parked TP Insured pulling out Changing lanes Other
Appendix 5 - Claims Detail By Total Cost
Analysis by Total Cost 2004 2005 2006 Total Cost No. Cost No. Cost No. Cost Non Fault / No Claim 10 144 8 50 3 12,954 up to 1,000 17 6,501 21 12,003 19 11,605 1,001-2,000 12 17,382 16 23,467 23 34,285 2,001-5,000 7 20,684 9 26,969 12 35,222 5,001-10,000 2 16,091 4 28,418 2 17,145 10,000+ 3 72,316 2 57,520 4 67,430 Cost of Losses 60% 50% 40% 30% 20% 2004 2005 2006 10% 0% Non Fault / No Claim up to 1,000 1,001-2,000 2,001-5,000 5,001-10,000 10,000+ Number of Claims 25 20 15 10 2004 2005 2006 5 0 Non Fault / No Claim up to 1,000 1,001-2,000 2,001-5,000 5,001-10,000 10,000+
Analysis by Blame 2004 2005 2006 Category No. Cost No. Cost No. Cost Fault 33 83,035 29 52,314 17 32,399 Outstanding 7 49,939 23 96,064 43 133,288 Non Fault 5 144 4 50 2 12,954 No Claim 5 0 4 0 1 0 Cost of Losses 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 2005 2006 Fault Outstanding Non Fault No Claim Number of Claims 50 45 40 35 30 25 20 15 10 5 0 2004 2005 2006 Fault Outstanding Non Fault No Claim
Appendix 6 - Individual Claims Listings