Broker Parterships ad Protocols As our broker parter, you are a importat ally i promotig ad sellig FM Global, a leadig worldwide provider of commercial property isurace. As a basis for placig philosophically aliged busiess, we look to you to help differetiate our property isurace products ad services i a highly competitive market. Together, we ca maximize the value you deliver to your cliets ad the promise you make to your prospects. Our Distributio Network FM Global is uique from most other major commercial property isurers i that it maitais a dual-distributio model embracig both brokered ad direct sales. We work i either capacity at the sole discretio of our cliet. Nearly two-thirds of FM Global s large commercial property isurace policies represets brokered busiess. AFM, our middle-market property isurer, works exclusively through a brokered etwork. Our Busiess Practices To esure global cosistecy i our broker busiess practices, we have developed the followig protocols to help guide our iteractios with our broker parters. Put simply, we respect ad hoor the broker relatioships that exist with cliets ad prospects. We also retai the right to target o-reserved prospects o a direct basis. Regardless of the sales arragemet, FM Global s servicig model is successfully based o direct iteractios with our cliets who are also our owers to allow us to deliver tailored service based o a agreed-to cliet service pla. Our Broker Protocols Followig is a breakdow of the compoets of our protocol documets. If you are viewig this documet olie, click o the lik to go directly to that sectio. Product ad Service Delivery: Cotais iformatio about our pricig ad commissio paymets Broker-to-Direct Coversio Policy: Outlies our commitmet to fairess ad ethical practices related to covertig brokered busiess to direct New Busiess Submissio Hadlig Policy: Details the broker quote submissio practice i the cotext of direct prospectig activity Chages o Broker of Record Policy: Provides iformatio o the timelie associated with recogitio of chaged broker of record Broker Parterships ad Protocols, Page 1 of 5
Product ad Service Delivery FM Global delivers, sells ad services its FM Global products through a dedicated sales force, its cliet service teams ad isurace itermediaries. Our process is desiged to deliver high-quality products ad services to all cliets, irrespective of productio source. Approximately two-thirds of FM Global s large commercial property busiess is produced through brokers ad oe-third is direct. This dual-delivery capability is itegral to our strategy ad recogizes the fact that some cliets prefer a direct relatioship with FM Global, while others prefer workig with brokers. Both types of busiess are importat to us, ad we strive to maitai a balaced mix. We fully support the relatioships with brokers o existig brokered accouts. We are committed to the equitable treatmet of our most importat stakeholders: our cliets. A FM Global cliet will ot be advataged or disadvataged by their selectio of distributio chael or by the distributio chael selected by other cliets. FM Global s pricig ad commissio paymet practices are straightforward: Our pricig policy is idepedet of productio source. Our mutual compay busiess i the Uited States ad Caada is quoted, writte ad ivoiced o a et (zero commissio) basis, whether produced directly or through a broker. We have the ability to pay brokerage commissios through our stock compay subsidiaries ad our WorldReach parters. Upo cliet request, we will disclose brokerage commissio(s) payable uder their policy(ies). We do ot pay ay fees, overrides or paymets such as cotiget commissios, placemet service fees, market service fees, compesatio for services to uderwriters or other such arragemets. Our success will be decided by FM Global s performace i the marketplace ad ot by our ability to selectively ifluece distributio chaels. Our success will deped o the value we deliver to cliets, the quality of our products ad services, the relatioships we build ad the behaviors we exhibit. Broker Parterships ad Protocols, Page 2 of 5
Broker-to-Direct Coversio Policy FM Global maitais two viable, effective delivery chaels. Covertig existig busiess from brokered to direct is cotrary to our objective of fosterig strog ad edurig relatioships with the brokerage commuity ad is ot part of our strategy. FM Global is fully committed to maitaiig its obligatio to cliets ad busiess parters. Because FM Global is recogized for its dual delivery, a icumbet broker must ot be give ay legitimate reaso to doubt the depth of FM Global s commitmet to the relatioship with them o existig busiess. As i all of our busiess dealigs, brokers have a right to expect that we will: behave cosistetly ad ethically; demostrate our commitmet to established relatioships; ad ear ad maitai their trust ad cofidece. FM Global s policy is that it does ot support, promote, ecourage or codoe, i ay way, broker-todirect coversios. FM Global operates o the priciple that, oce a cliet makes the choice to work with a broker, FM Global ejoys a privileged relatioship with that cliet ad its chose broker that will ot be udermied or dimiished. The fact that the cliet chose the broker delivery chael idicates that they saw a value i that choice. Direct coversios will ot be agreed to without express writte agreemet of the appropriate executive vice presidet, after cosultatio with both the cliet ad the broker. Occasioally, a existig brokered cliet may approach us to write a accout directly. We do ot ecourage or solicit such coversios sice they udermie trust ad impair our relatioship with the broker across the portfolio, creatig a lastig impact that exteds far beyod the accout i questio. Cliet service ad maagemet team members should esure brokers are iformed o a timely basis wheever such overtures are made. To the extet possible ad prudet, we will actively itervee with cliets to discourage such coversios. If they caot be dissuaded, we must hoor the cliet s right to free choice i how they access us, which is the basis of our dual delivery system. Withholdig capacity or service o the basis of cliet choice of access is ot a optio. We will allow a five-workig-day waitig period for the origial broker to chage the cliet s mid. Broker Parterships ad Protocols, Page 3 of 5
New Busiess Submissio Hadlig Policy FM Global ecourages broker parters to cosult with the relevat ew busiess developmet uit prior to sedig a usolicited submissio. I this maer, FM Global does ot become privy to iformatio the broker or cliet may cosider cofidetial if there is little likelihood of quotig. Whe the FM Global ew busiess developmet uit receives a prospect submissio from a broker, it will accept or declie it as follows: Acceptig a Submissio Whe FM Global specifically agrees to accept a broker s submissio (or does so tacitly by keepig it for more tha 10 busiess days), it will commit to workig exclusively through that broker for a period o shorter tha oe day past the subsequet aual reewal followig the oe for which the submissio was prepared. Acceptig a submissio does ot guaratee that FM Global will quote. Decliig a Submissio Whether solicited or usolicited, upo review, broker submissios may be declied for a variety of reasos (e.g., risk quality/profile, timig/resource availability, opportuity, otherwise committed, etc.). Whe decliig a submissio, it is FM Global s policy to otify the broker withi 10 busiess days idicatig the primary reaso for decliatio ad returig the origial submissio where practicable. I such cases, FM Global does ot commit to workig with the submittig broker o the program ad is free to etertai the prospect directly or work with aother broker. NOTE: This protocol is limited to accouts where the broker makig the submissio is the icumbet broker of record for the property lie of isurace or becomes the icumbet at the aual reewal at had, ad remais the icumbet util the subsequet aual reewal. The protocol is ot iteded to address mergers ad acquisitios that eed to be hadled o a idividual basis, depedet of the circumstaces. Broker Parterships ad Protocols, Page 4 of 5
Chages o Broker of Record Policy From the time a letter is received from the cliet or prospect appoitig a ew broker of record (BOR), the holdig broker has five days to get BOR rescided, after which FM Global will recogize the ewly appoited BOR. For more iformatio, cotact: Broker Relatios Russ Jaetto Vice Presidet, Cliet Service P: (401) 415 1199 E: russell.jaetto@fmglobal.com New Busiess Iquiries Please use our search tool to cotact your local FM Global regioal sales maager. FM Global Corporate Offices 270 Cetral Aveue, P.O. Box 7500 Johsto, RI 02919 USA P: (401) 275 3000 Cotact us W00301 2018 FM Global. (Rev. 05/2018). All rights reserved. fmglobal.com FM Isurace Compay Limited, 1 Widsor Dials, Widsor, Berkshire, SL4 1RS. Authorized by the Prudetial Regulatio Authority ad regulated by the Fiacial Coduct Authority ad the Prudetial Regulatio Authority. Page 5 of 5