Insurance Distribution through Data Management

ABOUT $35 Million Premium Under Management 18 Employees $3+ Million in Revenues General and Retail Agency All States Licensed in All Lines of Business Insurance to Include Primary Property and Casualty, Reinsurance, Life and Health and Excess and Surplus Management has underwritten almost $2 billion of Workers’ Compensation premium over the last decade and created five programs for public insurance carriers for workers’ compensation, EPLI and disability Joint Venture Technology Partners in insurance acquisition Software Development, Data Management, Fleet Management and Cyber Liability

WHY WE NEEDED TECHNOLOGY… TOWER CASE STUDY

$25m of orphaned claims on a Workers’ Compensation program generating premiums of $150m of premiums per annum based on the disconnect between the named insured policy number (PEO) and the locational employer whose employee was the claimant (client company) Carrier of record insisted on a daily financial bordereaux (extract of all information that need to be mapped and mirrored into the policy system of the carrier Tower Case Study

The Data Scientists Cathy Doss, Chief Data officer, Capital One Mitch Hamilton, Director of Data Warehousing & Business Intelligence, Capital One The Actuaries Ray Neff: Project Lead Oliver Wyman: Provided the ‘Letter of Meaningfulness’ for the barnstable vintage workers’ compensation predictive model Clients of Data Blueprint that have also adopted ‘data vaulting’ Federal Bureau of InvestigationBank of America Deutsche Bank World Bank European Central Bank Clients of Data Blueprint that have also adopted ‘data vaulting’ Federal Bureau of InvestigationBank of America Deutsche Bank World Bank European Central Bank Tower Case Study

The FEIN is the most definitive identifier for insurance data integration Tower Case Study

Data Flow Architecture Tower Case Study

Patent-Pending Predictive Modeling Process to “Diagnose” Inherent Risks to Our Client’s Assets and to then create a “Treatment” Path to neutralize internal exposures Home-grown Proprietary Data Vault built in conjunction with data blueprint, inc. data scientists 70,000+ AND COUNTING Workers’ Compensation Claims (and counting) With Monthly Valuation Dates Starting 3/31/05 and every month thereafter Barnstable vintage predictive model for workers’ compensation CURRENTLY BEING PROVEN OUT WITH BUSINESS PARTNER, MILLIMAN Joint Venture Technology Partners in insurance acquisition Software Development, Data Management, Fleet Management and Cyber Liability

WHY WE NEEDED APPULATE

The patent-pending process flow on “the system and method for valuation, acquisition and management of insurance policies Application Number 14/243,265 publication number us a1 published April 9, 2015

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Patent Process Flow – Figure 1: Portfolio and Asset Desired ROE Desired Combined Ratio Desired ROI Desired Expense Ratio Desired Loss Ratio Risk Bearer, Affiliate, Client Benchmarks (Set dials per what is meaningful) Powered By:

Patent Process Flow Figure 2:Asset Valuation & Pricing Powered By:

Patent Process Flow Figure 3: Portfolio Management Powered By:

“Geico meets Workers’ Compensation” With the population of carrier logic, “virtual insurance store” guidance and pricing

# of submissions: 93 Total Premium: $7.5M Results: # Quoted/Indicated: 55 (70%) Bound Premium: $900K+ Q Results: 1 Client

Strategy Behind the Business Model

 There are 80 million millennials in America alone and they represent about 1/4 th of the entire population with $200 billion in annual buying power.  By 2020 the projected spending in the USA will grow to $1.4 trillion annually and millennials will represent 30% of total retail sales  Baby boomers will transfer $30 billion in inheritance to the millennials in the coming years. The Millennial Buying Power

Millennials Habits & Technology  Almost half of today’s insurance industry professionals are over age 45, with 25 percent of the industry expected to retire by  There will be 400,000 open positions by 2020, by some estimates. * Insurance Journal November 2015

“Generation Sell”  By 2015 millennials will overtake the majority representation of the workforce  Almost 16% of small business owners in 2012 were under 35  By 2030 this hyper-connected, tech savvy generation will make up 75% of the workforce

The Real Opportunity  18,000+ Agencies Already Actively Using Appulate Countrywide with out Indication or Binding capabilities  If we convert 5% to Excavators = 70 Agencies  If each bind $50,000 annually in premium = $3.5M At an average of 10% in commission this equates to $350,000 in revenue

The Future D evelopment of “Insurance Ecosystems” utilizing Appulate as the core “system of acquisition” for all levels of the insurance hierarchy. Reinsurers Insurance Carriers MGA’s, MGU’s and TPA’s Insurance Agents/Brokers Insureds

The Future Insurance Legacy Systems Data “Light-Brites” Application Quotation/Proposal (rating system) Binder Policy Billing Audit

The Future Concurrent pricing for commercial lines using multiple carriers and predetermined algorithms

The Dream Appulate provides the very first online mechanism to determine occupational and non-occupational healthcare pricing side by side