qüé=táääáë=nì~äáíó=fåçéñδ cáåçáåöë=ñêçã=íüé= `~êêáéê=bî~äì~íáçå=pìêîéó péêáåö=ommt cçêéïçêç= gçé=mäìãéêá táääáë=dêçìé=`ü~áêã~å=c=`bl

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1 qüé=táääáë=nì~äáíó=fåçéñδ cáåçáåöë=ñêçã=íüé= `~êêáéê=bî~äì~íáçå=pìêîéó péêáåö=ommt cçêéïçêç= I am excited to present a summary of the inaugural results from the first global Willis Carrier Evaluation Survey. This is a groundbreaking project in which over, Willis Associates benchmarked carriers across a range of activities such as underwriting, policy administration, claims handling and service. blend of feedback from our Carrier Evaluation Survey and, critically, additional quantitative information. This will include premium volume metrics and other information collected by Willis, such as systems driven claims settlement and policy administration metrics. The results of the Carrier Evaluation Survey will be crucial to us going forward. We are committed to placing our clients business with those carriers who best meet their needs. We will use the results to enhance our services to our clients working together with insurers to raise the standards of performance theirs and ours. This goes to the principle, close to my heart, of clients having confidence and faith in our industry and moving Willis forward into our next chapter. In this briefing note we present the results of our inaugural global Carrier Evaluation Survey carried out during Spring. In the future we intend to conduct the Survey at Willis biannually and will feed the results back on a timely basis to our clients, the carriers and at a high level to the market in general. In the meantime, I trust you will find these first results illuminating, interesting and even challenging! The Carrier Evaluation Survey is part of a wider initiative, the Willis Quality Index, which will be launched later in. The Index has been designed to enhance both our and our clients ability to make more informed decisions. It consists of a unique The Willis Quality Index is a market leading initiative from Willis which we believe will help to drive forward improvements in service across the industry. This is a clear win-win for our clients and for the carriers we work with. gçé=mäìãéêá táääáë=dêçìé=`ü~áêã~å=c=`bl táääáë Carrier Evaluation Survey

2 qüé=táääáë=`~êêáéê=bî~äì~íáçå=pìêîéó The results of the Carrier Evaluation programme are based on a survey of Willis Associates carried out over the period 9 February to March. Associates were asked to rank carrier groups, on a scale of (lowest) to (highest), against four categories. Within these categories were a total of questions. The categories and areas of questions within each are illustrated below: e.g. commerciality, coverage and responsiveness. administration e.g. timeliness, accuracy and quality of their information systems. e.g. attitude, settlement and technical support. e.g. loss control, risk assessment and post placement services. We have not weighted the results from the survey in any way. Individual responses were received from, Willis Associates globally. Generally, respondents were highly experienced with % having been in the insurance industry for more than years. Sufficient responses were received on carrier groups for inclusion in this research paper. héó=ñáåçáåöë oéáåëìê~ååé= kçêíü=^ãéêáå~=oéí~áä fåíéêå~íáçå~ä= ^ëá~=m~åáñáå= fåíéêå~íáçå~ä= `çåíáåéåí~ä=bìêçéé fåíéêå~íáçå~ä= i~íáå=^ãéêáå~ fåíéêå~íáçå~ä= rh=c=fêéä~åç=oéí~áä bãéäçóéé=_éåéñáíë pééåá~äíó=_ìëáåéëëéë cçê=ñìêíüéê=áåñçêã~íáçåw táääáë=nì~äáíó=fåçéñl`~êêáéê bî~äì~íáçå=pìêîéó p~ääó=_ê~ã~ää Managing Director Telephone: + () 9 sally.bramall@willis.com mêéëë=~åç=mìääáå=oéä~íáçåë fåöêáç=_çëåü Group Communications Telephone: + () ingrid.bosch@willis.com P Q R S S S T T U % % % % % This report is for general information purposes only and is not intended to be relied upon nor is it intended that any action based be taken on or in connection with any information contained herein. Willis Limited and its holding, subsidiary and affiliate companies assume no responsibility or duty in tort, contract or otherwise to any party in respect of this report. The accuracy and completeness of the information and opinion expressed herein is not guaranteed. No warranty or representation of accuracy or completeness is given. This publication speaks only as to the date on which it was created and Willis Limited and its holding, subsidiary and affiliate companies shall have no obligation to update or amend any information or opinion contained herein. This document is not prepared for and should not be construed as providing investment advice or services and Willis Limited and its holding, subsidiary and affiliate companies do not guarantee or otherwise warrant the solvency of any insurer. Willis Carrier Evaluation Survey Experience of Respondents (Years) táääáë Carrier Evaluation Survey

3 héó=ñáåçáåöë In general, the Willis Carrier Evaluation Survey offers encouraging results for the carriers ranked by Willis Associates. On a scale of to all carriers were ranked above the midpoint. Although nearly half of the carrier groups received a mean score of or greater, none scored more than. There is clearly opportunity for carriers to further differentiate themselves through service and performance. Our research demonstrates that most carriers perform reasonably consistently across all surveyed question categories either consistently well, or less well. There are, however, more examples of considerable variation between a carrier s scores in different sectors for example geographically or in a specialist field.... In contrast, the range of scores in all other categories was greater evidencing a much wider variation in opinions about the performance levels of carriers. As a result, the overall aggregate scores for, and were slightly lower. High Coverage. Contract Certainty. Continuity.9 Analysis by Willis business unit suggests that our Associates in Employee Benefits, Specialty areas and Reinsurance rate the performance of their carriers most highly. Associates in Willis international offices had the least positive views in relative terms about their carriers. Low Risk Assessment. Loss Control. Information Systems.9 Highest and Lowest sub-category scores Overall Category Scores _ìëáåéëë=råáí påçêé Employee Benefits. Global Specialties. Willis Re. Willis North America Willis International - UK & Ireland Retail.9 Willis International - Scandinavia. Willis International - Latin America. Willis International - Continental Europe. Willis International - Asia Pacific. was overall the highest rated category, with a mean score of just under. Two elements, Coverage and Contract Certainty, were the highest scoring activities across the whole survey. scores were tightly clustered demonstrating little perceived differentiation between carriers in this activity. There is some evidence that carriers in more specialist areas, for example those offering a more focused range of products and services, demonstrate better overall performance than some more diversified groups. We will evaluate this viewpoint in more detail as the results from future surveys become available. táääáë Carrier Evaluation Survey

4 oéáåëìê~ååé Reinsurance includes responses from our offices in Australia, Europe, Ireland, Japan, Latin America, UK and the US, including specialty areas of Marine, Aerospace and Retrocession. Reinsurance markets were generally scored slightly higher by Willis Re Associates than by other parts of the Group. Although evident across all categories, this was most marked / Contract and, and least in. Reinsurers also scored slightly higher on aggregate in the / Contract than in any other category. Responses from the Far East were however an exception to this, where they scored companies significantly lower in this activity. The highest scoring individual carrier across Willis Re received the top ranking in three of the four categories demonstrating consistency of performance. In terms of carrier domicile, the results were well spread and showed little difference between entities based in US, Bermuda, London, Asia or Europe. There was quite a wide variation in views geographically on performance. Latin American respondents viewed services more positively than those from other geographical regions The mean score given to reinsurers across all categories by Willis Re US Associates was slightly lower than that achieved by carriers outside the US. Willis Re s international based associates ranked reinsurers more highly for than US based respondents. s versus Willis Re Willis Re táääáë Carrier Evaluation Survey

5 kçêíü=^ãéêáå~=oéí~áä This includes teams serving the North American markets from the USA, Canada, Bermuda and London. Opinions across the North American regions demonstrated clear differences regarding how carriers operate at local levels. This is illustrated by the broad range of scores across the carrier groups surveyed. This spread was twice that seen by Willis globally. Compared with the overall, carriers scored on average slightly higher in North America in all categories with the exception of The highest ranked carrier in the US scored consistently well across all categories, and particularly in the sector. WNA s versus WNA West Canada Central Southeast New York Northeast Willis Associates from the North East US had the most positive views on their carriers, particularly relating to and. Our research indicates that Associates based in London experience better service than in other regional offices in North America. The least positive views were expressed by Willis associates from our Bermuda and Canada offices, who provided some of the lowest scoring results for worldwide. `~å~ç~ `Éåíê~ä kçêíü=b~ëí kéï=vçêâ pçìíü=b~ëí téëíéêå içåççå _ÉêãìÇ~ Admininstration táääáë Carrier Evaluation Survey

6 táääáë=fåíéêå~íáçå~ä Willis operates in countries globally. For the purposes of this research we have concentrated on geographical regions: Asia Pacific, Continental Europe, Latin America and UK & Ireland. ^ëá~=m~åáñáå Carriers in the Asia Pacific region overall scored relatively low across all four categories, compared with Willis global results. of the ranked carrier groups are headquartered in the Asia Pacific region, although many operate in other territories. Willis Associates in Asia Pacific were least satisfied with, which scored lowest globally based on our research. Asia Pacific s versus Asia Pacific `çåíáåéåí~ä=bìêçéé Respondents in Willis Continental European offices were more critical of the carriers with whom they operate than many other parts of the. The most positive views related to the section although they were still lower than the aggregated results elsewhere. Continental Europe s versus Continental Europe The lowest scoring category on aggregate was, which was significantly lower than for Willis globally. Compared with North America, Continental Europe s mean score was nearly % lower and was amongst the lowest across the survey Associates in our Scandinavian offices generally rate their carriers higher than those in the other parts of Europe, particularly in and capabilities. i~íáå=^ãéêáå~ The mix of carriers in the Latin American region were evenly split between locally headquartered and international groups. Latin America s versus Latin America although their scores were still below those achieved in other sectors/geographical regions. The international groups scored noticeably higher than the local carriers across all categories, The results of the top carriers in this region were extremely close, across all categories. táääáë Carrier Evaluation Survey

7 rh=c=fêéä~åç=oéí~áä UK & Ireland Retail includes Associates servicing small and medium sized enterprises (SMEs) and larger commercial businesses. héó=cáåçáåöë Overall, scores for carriers in UK and Ireland were broadly consistent with results for Willis Group as a whole. However, there was a wider range of scores towards the lower end. The top scoring carrier group in the UK sector, which operates in the Lloyd s market, scored consistently highly across all categories There was some disparity in the views of Associates servicing different sectors. For example, carriers servicing SME segment performed better than those focused on larger commercial businesses. This is particularly noticeable in our category. UK&Ireland s versus UK&Ireland Respondents from Willis Irish operations generally gave less positive feedback on their carriers performance bãéäçóéé=_éåéñáíë Willis Employee Benefits teams specialise in life and health fields, and are based in offices in the UK, US and the rest of the world. s versus Willis Employee Benefits héó=ñáåçáåöë Willis Employee Benefits Carrier groups in the employee benefits field were viewed by Willis associates consistently higher than the mean across all categories. As employee benefit carriers typically provide specialist services, this necessitates consideration of whether specialist carriers, by their very nature, are able to offer superior performance. Over time we hope the Willis Quality Index will provide answers to this question. and categories both received high aggregate scores from Willis Employee Benefits teams, and indeed scored highly in comparison to other territories and business specialisms. There was least variation between the top and bottom scoring groups in the category and the most variation in. táääáë Carrier Evaluation Survey

8 pééåá~äíó=_ìëáåéëëéë Specialty Businesses includes Aerospace, Construction, Marine, Energy, Financial & Executive Risks, Fine Art, Kidnap & Ransom and Bloodstock. Two thirds of the carriers, which were ranked by the Specialties teams, operate in the Lloyd s market indicative of the nature of risks insured in this sector. Lloyd s related entities ranked relatively evenly with other markets. The overall results suggest Associates in Willis Specialties businesses have a more positive view on the performance of their carriers compared with Willis generally The results were particularly close for those carriers dealing with our Specialty businesses. Indeed a different carrier achieved top spot overall and in each category. Critically, all of these top scoring carriers operate in the Lloyd s market. Results in Marine were consistently high across all categories. Carrier groups operating in Niche markets, for example Fine Art and Bloodstock, scored particularly well in as did those operating in the Construction market. Global Specialties s versus Global Specialties Holdings Limited is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has over offices in some countries, with a global team of approximately, employees serving clients in some 9 countries. Additional information on Willis may be found on its website táääáë Carrier Evaluation Survey