Bluefin Presentation

Looking forward

Strategic Insurance Audit for Lincolnshire Co-operative Limited Strictly Private and Confidential 6 February 2013

A powerful, professional and personal service Our trading principles We are independent insurance specialists with access to a range of products from leading global insurers and with our tenacious yet flexible approach strive not to be beaten on value for money.

As insurance experts, we monitor your risk landscape and conduct regular reviews to ensure the insurance programmes we arrange are accurate and appropriate.

We challenge convention by delivering imaginative insurance and risk management solutions designed to meet the sometimes complex requirements of corporate organisations.

Working as trusted partner to our corporate clients, our professional team strive to develop long-lasting relationships built on knowledge, clarity and openness.

Developing and nurturing high quality insurance talent is always a top priority and we have worked hard to create a strong and dependable team with the intention of exceeding expectations.

From our first meeting through to dealing with claims, our clients are at the heart of what we do and our aim is to deliver a truly first class service at every stage of the relationship.

Key messages Our team today

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Bluefin added value

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Retail sector expertise

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Programme design and broking strategy

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Insurance protection strategy

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Bluefin service

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Claims management

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Transition

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Why Bluefin

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Our team today Mike Bruce • Regional Managing Director • Overall responsibility for service to Lincolnshire Co-operative Diane Ashworth FInstLM • Executive Director • 23 years with Bluefin • Primary responsibility for service delivery to Lincolnshire Co-operative Kate Martin Dip CII • Senior Account Broker • 10 years with Bluefin • Day to day responsibility for service delivery to Lincolnshire Co-operative

Our focus • Understand Lincolnshire Co-operative and your unique needs • Negotiate the widest policy wordings, reflecting all your business activities and delivering balance sheet and brand protection • Reduce your cost of risk – claims, premium and broker fees • Deliver outstanding service with enthusiasm and commitment • Add real value to Lincolnshire Co-operative and your members

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Bluefin added value • We are fanatical about detail – Bluefin bespoke wordings • We understand the Co-operative’s unique culture and principles • We will challenge insurers • We will work to exceed your expectations • We will represent you with professionalism and integrity

Value drivers

Reduce cost

Tough negotiators on premium Bespoke policy wordings No warranties/few conditions Flexible business interruption Protection for specialist covers Continuous risk evaluation Pragmatic advice Claims service Insurance awareness training

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Increase efficiency

Improve protection

Increase income

Retail sector expertise We have the expertise to be your insurance broker: • Midcounties Co-operative Society Limited • Midlands Co-operative Society Limited • Waterstones Holdings Ltd • Fortnum & Mason Plc • JJB Sports Plc • Zara UK Ltd • Nando’s

We will…

• Understand your business and where the hidden risks lie • Share best practice from our experience with Midlands Co-operative and Midcounties Co-operative • Undertake joint strategy meetings and liability claims benchmarking • Deliver claims defensibility training for retail managers • Provide a comprehensive risk management programme • Deliver greater control in respect of the commercial property portfolio and provide support to manage your tenants as required

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Programme design and broking strategy Current programme • Traditional – appears to have evolved over time • Deficiencies in sums insured – business interruption and public liability • Policy cover issues – pharmacy and motor trade liability • Emerging risks – cyber and environmental liability • Does not deliver value for money in price or scope of cover for the Society or your members

We will...

• Challenge the insurance market on price and cover. We see this as a 12-18 month project working in partnership with the Society • Generate insurer competition to identify real interest • Undertake a full claims review and analyse the potential benefits of increased self insurance; this does not mean greater exposure to your balance sheet • Compile a risk presentation to positively present the Society to the insurance market. We will ask the Society to validate this document • Increase insurer competition with an insurance market open day, enabling insurers to gain a better understanding of the business • Deliver a true tripartite relationship with the insurer’s at the right level so that the Society is well placed when the insurance market hardens

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Insurance protection strategy .

Assess your risk exposure

Follow a stepped process from risk analysis to placement to create carefully designed solutions

Design risk transfer programme

With the right structure and broker support, greater selfinsurance need not mean greater risk to the balance sheet

Efficient execution and placement

Ongoing assessment of your needs

We will…

• Determine your risk retention appetite and ‘comfort zone’ • Assess how greater self-insured losses would be managed and funded • Deliver an integrated claims management system to take control of deductible levels • Benchmark your cost of risk against your industry peers • Deliver an independent survey programme which will, when the insurance market hardens, provide invaluable risk information

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Bluefin service • Customer centred approach adding value and part of an inclusive relationship that supports and dovetails with your own resources • Service delivered by a very experienced team providing a highly professional and proactive service to Midcounties and Midlands Co-operative Societies • Policy documents will be available via the Bluefin extranet facility, our on line filing cabinet available 24/7 • Your outsourced insurance department

Core team Who

What

Mike Bruce

Diane Ashworth FInstLM

Kate Martin Dip CII

Relationship Director

Executive Director

Senior Account Broker

Ultimate responsibility for the effective delivery of service

Overall responsibility for day to day strategy and delivery

Day to day contact for The Society

Responsible for providing leadership, strategy and delivery

Contract and licence agreement reviews

Overall responsibility for the senior relationship with Midcounties and Midlands Co-operative Societies

Claims review meetings including quarterly claims analysis Ad hoc health and safety and risk management advice General update on insurance market developments

How

Annual strategic review prior to renewal

Formal quarterly reviews, including renewal

Support and advice to day to day service team

Process agreed agendas Respond to new issues as they arise

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Supporting Diane in broking responsibilities All aspects of account administration including claims Currently responsible for the day to day management of both Midcounties and Midlands Co-operative Societies

Day to day contact Deliver agreed agendas Respond to new issues as they arise

Claims management • Proactive management of claims delivered by the core service team in London. We do not outsource claims management • Attendance at meetings on claims negotiations. Where liability claims are to be challenged and defended, we ensure that this is done with sensitivity. We recognise commercial and brand considerations.

• Introduce an innovative and integrated risk management system to support claims management. Both our Co-operative Society clients use this effectively • Specialist Bluefin resources to handle large or contentious claims to deliver enhanced level of support

We will…

• Discuss with you the benefits of assuming responsibility for the management of existing claims • Undertake a full analysis of all claims to identify trends and benchmark against our other retail clients • Challenge current reserves • Appoint a nominated loss adjuster who would know your business and culture prior to a loss • Deliver claims liability defensibility training for retail managers

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Transition Step

Feb

Decision made – broker appointed Takeover policies/documents/files etc Review meeting with the Society Agree and define scope of risk management support Establish position with existing insurers Audit current policies and report findings Identify and evaluate risk exposures (risk profile) Compile renewal questionnaire and assist in completion Update run off experience from previous insurers Challenge and verify insurer claims data Return of renewal questionnaire from the Society Presentation to insurers/ tripartite meetings Undertake cost benefit analysis Programme design Issue renewal options and recommendations Place programme Issue invoices within agreed timescales Issue updated policies and certificates Issue policy register Post renewal review with the Society

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Mar

Apr

May

Jun

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Why Bluefin Bluefin is different to other brokers: • Our people are: • stable and consistent: many of our service team have worked together for over 10 years and form the core of our dedicated Co-operative Society service team.

They have a vast amount of experience and an excellent understanding of The Co-operative Society and its values • very experienced in the necessary skills of listening and analysis • technically excellent • skilled negotiators on cover as well as price • We are challenging with ourselves, with our clients and with insurers • We are fanatical about detail • We are committed to our clients; we do not just say things: we deliver

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Notes

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bluefingroup.co.uk Bluefin Insurance Services Limited is authorised and regulated by the Financial Services Authority. Registered Office: 5 Old Broad Street, London EC2N 1AD. Registered in England No: 931954