IIFA Seminar Thursday 21 st October 2010 Dublin

Marine Insurance • Dynamics and challenges in the (insurance) market – Trade & Insurance markets • Trade Facilitate & Starr Marine partnership • On line Trade Facilitate applications

Global Marine Insurance Market Total Reported: 22, 9 billion USD Total Estimated: 23, 6 billion USD Source: IUMI 2010

Dynamics of the insurance market • 21 st Century • Technology and global trade • Technology and Insurers – An acronym? – Opportunities • Globalisation • Trade • Services – FOS – Freedom of Services – Lloyd’s Franchise board

Nature of the marine insurance market • ‘To follow’ principle – Trade – Needs • Inherent part of many trade transactions: – Contract of • Sale • Carriage/transport • Credit (LC/structured/. . . ) • Insurance – INCOTERMS • Innovation

Nature of the marine insurance market • Sensitive – Trade shocks • Seaborn trade contracted -4, 5% in 2009 • Container shipping -9, 4% in 2009 – Freight rates • Baltic Tanker freight index • Dry cargo freight rate index Source UNCTAD

Challenges of the market • Cargo: – Reduction in insured values – Upwards adjustments of 07/08 claims reserves – Profitability • Hull – Loss for 14 consecutive years • Off Shore Energy – Volatile

Challenges of the market • Regulatory • Compliance – Trade restrictions – Sanction regimes • Solvency II • Transparency • Performance & efficiency

Solvency II • Revised solvency regime for EU (re)insurers • Implementation of solvency requirements – Improved reflection of the risk – Consistent supervisory system EU • Requirements for – Capital adequacy & risk management – Reduction likelihood of failing (re)insurer

Trade Facilitate & Starr Marine partnership How to manage the challenges? • Innovation – ‘Must have’ • Service Industry = facilitating role • Insurance is never a client’s core business • Define values/benefits & key differentiators – Time – Accuracy and efficiency – Cost saving – Performance – Growth

Trade Facilitate & Starr Marine partnership • How? – Smart • Use of technology • Improved service • Simple – Quick win – Strong partners • Field Experience • Standing reputation • Thinking ahead – People • Advise and assist – From constraints to opportunities

Insurance application • Why Cargo insurance? – Capital at risk – Unforeseen element – Ultimate requirement • Title/holder of the insurance certificate • No liability constraints – Limitation of (carriers) liabilities • Hague visby / Rotterdam • Warshau – Short tail • Financial burden for undamaged cargo: – GA contributions

Insurance application • Accredited Members • On line – A few clicks away • Transactional or Structured – Personal designed program • Easy acces to highest security – Lloyds A+ • Instant delivery – Pdf secured and unique certificate – Electronic negotiable document • On line claims notification • Immediate acces to local surveyor

Conclusion • Marine Insurance not always on the shopping list • Differentiator • Premium service • Financial security • Keep it simple

Company information

Starr Underwriting Agencies, LLC • Starr Underwriting Agencies, LLC (SUAL) is a wholly owned subsidiary of CV Starr and the parent company of the Starr Underwriting Agencies • The Starr Underwriting Agencies: – C. V. Starr & Co. (C. V. Starr) – Starr Aviation Agency, Inc. (Starr Aviation) – Starr Global Accident & Health Insurance Agency, LLC (Starr Global) – Starr Marine Agency, Inc. (Starr Marine) – Starr Specialty Lines Insurance Agency, LLC (Starr Specialty) – Starr Technical Risk Agency, Inc. (Starr Tech)

Starr Underwriting Agencies, LLC • Internationally, the Starr Underwriting Agencies operate as divisions of: – Starr Underwriting Agents Limited – Starr Underwriting Agents (Asia) Limited • The Starr Underwriting Agencies are projecting to produce approximately $2. 1 b in gross premiums in 2009 and expect to employ more than 700 people globally • The Starr Underwriting Agencies have decades of experience in managing complex risks

The Starr Underwriting Agencies Distribution Network Locations

Starr Marine • Formerly known as the American International Marine Agency. – Founded in 1945; – Worldwide underwriter of Ocean Marine business and exclusive Managing General Agent (MGA) for the AIG group of Companies for over 60 years. • In 2006 our agreement with AIG ended and the entire underwriting, accounting, loss control and systems team at AIMA moved as one to what is now Starr Marine Agency Inc. . • In July of 2006 we announced the formation of our new partnership with the Berkshire Hathaway Group of Companies as their MGA for Ocean marine business. • In October of 2006 we opened our first office overseas and Syndicate 1919 began writing business at Lloyds.

Starr Marine (continued) • In November of 2006 American International Marine Agency announced our name change to Starr Marine Agency, Inc. . • In 2007 we opened an office in Hong Kong and further expanded into Beijing and Shanghai. • In 2008 we opened offices in Belgium, The Netherlands, Italy and Germany and we have plans for further expansion in the near future. • We continue to write, as we have throughout our history, a full compliment of Ocean Marine Coverage’s - Cargo, Hull / P&I and a variety of primary & excess liability covers. • Agency services also include claims management, subrogation, loss control & accounting.