1. Trending Now Dale A. Sailer Principal Relias Services Group Business Mentors: 2012 Leadership and Business Development Summit

2. Important Trends Measurement – Networks, electronic communications, reports, measurement (NPS) Auto portends Property Technology is not a differentiator, equipment is not a differentiator – People are a differentiator New ‘TPA’s’ will continue to enter the market Insurers will continue to try and ‘carve up’ a claim © 2012 Relias Services Group

3. Important Trends Buyer’s market – Impact on price, differentiation, ‘orientation’ We’re scared You can’t hide anymore Change or Die Consumers’ attitude re: responsibility – Leverage, deductibles, Florida Coast Gas prices (Australia, water) Property Industry Conference © 2012 Relias Services Group

4. Quick Insurance Lesson What are the Three Core Components of an Insurance Company? – Underwriting – Investing – Claims

5. Quick Insurance Lesson Why Do People Start Insurance Companies? – Underwriting (I’m better at evaluating risk) – Investing (I’m better at analyzing ROI opportunities) – Claims (NEVER!)

6. Quick Insurance Lesson Pure Loss Ratio: – Direct Loss Cost ÷ Total Premiums Loss Ratio: – Direct Loss and Loss Adjustment Expenses costs ÷ Total Premiums Expense Ratio: – Underwriting Expenses ÷ Total Premiums Combined Ratio: (Direct Loss Costs + Expenses) ÷ Total Premiums Is Combined Ratio of 107% good? Is Combined Ratio of 102% bad?

7. Contact Information Dale A. Sailer Principal Relias Services Group 847-730-3447 (o) 847-971-8745 (c) dale@reliasservices.com www.reliasservices.com © 2012 Relias Services Group