1. Insurance & Financial Services Cluster Connecticut Economic Summit January 12, 2005 Shared Action for Growth

2. Insurance & Financial Services Cluster 2 IFS Cluster – Industry Collaboration for Economic Vitality The Advest Group/AXA ConnectiCare Congressman John Larson Day, Berry & Howard LLP Department of Economic & Community Development Evolution Benefits Ernst & Young Fleet Bank/Bank of America The Hartford Financial Services Group Hartford Steam Boiler Inspection & Insurance Company/AIG ING Group Insurity Lincoln Financial MetroHartford Alliance NewAlliance Bank Northeast Utilities People’s Bank Phoenix Wealth Management PricewaterhouseCoopers Prudential Retirement St. Paul Travelers Sovereign Bank State Farm Travelers Life & Annuity/Citigroup Uniprise/UnitedHealth Group Webster Bank Sponsors

3. Insurance & Financial Services Cluster 3 - The IFS Cluster - Industry Collaboration for Economic Vitality

4. Insurance & Financial Services Cluster 4 Mission & Focus: Advancing CT’s Insurance & Finance Industry Mission:  Advance and protect the IFS business climate  Collaboratively address threats and opportunities Goal:  A dynamic and expanding IFS industry in Connecticut  Global recognition as an IFS Center of Excellence Strategy:  Business-led collaboration with education and government Enhance the competitive strength of IFS companies Develop a cadre of qualified and experienced employees Expand employment opportunities Increase workforce diversity Mission

5. Insurance & Financial Services Cluster 5 IFS Cluster Operational Plan – Top Priorities for Collaborative Action Develop our Workforce  University of Connecticut Risk Management & Insurance Studies  University of Hartford Entrepreneurial Program, Actuarial Studies, Leadership Devl.  Central Connecticut State University Risk Management & Insurance  Trinity College Career Service Engagement  Connecticut Community College System IT Education, Customer Service, Best Practices Seminars, Healthcare Curricula, NASD Series Preparation Promote the State and Region  Business Recruitment: North Carolina Mutual Life, Fidelity, ING corporate, Colonial Supplemental, Mellon Financial  National Conferences: Risk & Insurance Management Society, LOMA, LIMRA, American Bankers Association, Health Insurance Association of America, Securities Industry Association, CoreNet Build State Support  Public Policy Platform, with focus on job growth and company formation incentives, health care cost containment, Terrorism Risk Insurance Act Operational Plan & Sample Accomplishments

6. Insurance & Financial Services Cluster 6 Connecticut’s Insurance and Finance Industry – Critical to the State Contributes 13.6% to Gross State Product  GSP contribution grew from 8.3% in 1990 to 13.6% in 2000. Employs 125,600, in 5,550 establishments  Accounting for 8% of total Connecticut employment  Insurance 71,900  Finance 53,700 Connecticut’s Insurance Leadership:  Greatest concentration of insurance jobs among the states, with 3.5% of total employment found in this sector.  Ranks 4th in absolute size of insurance output.  Led the nation in market share growth from 1990-1999, when its share of national insurance industry output grew from 5.1% to 6.1%. Growth Prospects High in Sectors:  Financial Services, 12% growth projected  Customer Service, 20% growth projected  Computer Support & Engineering, 58% to 68% growth projected Source: CT Dept of Labor, A.M. Best. Employment figures reflect 2002 data. Growth projections relate to period 2000-2010. CT’s IFS Industry

7. Insurance & Financial Services Cluster 7 Connecticut’s Insurance, Finance, & Real Estate Jobs Source: CT Dept of Labor Number of Employees (‘000’s) CT’s IFS Industry

8. Insurance & Financial Services Cluster 8 Connecticut Insurance Segment Employment Source: CT Dept of Labor Number of Employees by Year CT’s IFS Industry

9. Insurance & Financial Services Cluster 9 Connecticut Finance Segment Employment Source: CT Dept of Labor CT’s IFS Industry

10. Insurance & Financial Services Cluster 10 Connecticut - Top 10 State Location for Insurers State Comparison — Number of Insurers (Domestic) 2001 Source:NAIC report, 2001 Insurance Department Resources Report. Twenty seven leading insurance states. State Comparisons Property and Casualty Life/Health VT TX NY IL PA WI CA OH FL CT IN NJ MI MA IA NC MN AZ NE GA LA NH SC WA AL CO ME AZ TX NY IL LA OH IN PA CT CA WI IA FL NE GA MN MA MI AL WA SC CO NC NJ NH ME VT Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Selected states with large numbers of P&C and L-H insurers. CT’s IFS Industry

11. Insurance & Financial Services Cluster 11 IFS Employment Fluctuations - Ramifications for Connecticut Given the Industry’s Contribution to Connecticut’s Economy State Comparison — Economic Impact of Insurance Industry on State Economy 1999 (latest year available) Source:NAIC report, 2001 Insurance Department Resources Report State Comparisons Insurance Industry Monetary Contribution to 1999 Gross State Product, $ Billions Percentage Contribution to 1999 Gross State Product, Percent CA NY TX IL PA FL CT NJ OH MA GA MN MI WI NC WA CO IN IA AZ LA AL SC NE NH ME VT CT IA NE ME MN NJ NH PA IL WI MA FL CO NY OH GA TX AZ VT SC IN CA WA AL NC LA MI Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Selected states with large numbers of P&C and L-H insurers. CT’s IFS Industry

12. Insurance & Financial Services Cluster 12 Promotion of Our Strengths: Not Reaching the Players that Count Site Selectors and Location Brokers:  “Connecticut is not on anyone’s radar screen.”  “Aggressive marketing needs to be done to establish Hartford’s brand.”  “Need to reach the decision-makers. That is not being done.” Source: “Best Business Climates by Region” from Development Counsellors International, September 2002. Study reflects the percentage of business executives citing regions of U.S. as offering the best business climates. Interviews conducted with site selectors and commercial real estate brokers, 2003, Robert Flynn, Executive Director, IFS Cluster. Public Policy Issues

13. Insurance & Financial Services Cluster 13 Sources:Insurance Times, March 5, 2002; Best’s Review Property & Casualty Edition, November 1994; IFS Cluster interviews, 2003. IFS Cluster & Accenture analysis Number of Insurance Jobs 39,526 Iowa has created 11,300 jobs since 1990, a 39% increase CT has lost 8,290 jobs since 1992, a 10.3% decrease. 71,900 Primary Competitors Including Iowa, New York, & Illinois Have Implemented State Strategies Focused on Insurance Jobs Total Number of Insurers: Iowa = 1,449 Connecticut = 1,104 Iowa’s Dedicated Strategy:  In 1990, Governor launched effort to make Iowa “the nation’s top insurance state by 2000”.  Established unified approach to business attraction that transcends political administrations and connects agencies:  Director of Insurance Business Development is point person for insurance-related business attraction.  Commissioner’s office and state insurance association actively promote Iowa as a place to locate insurance jobs.  Iowa representatives frequently visit Connecticut executives. Case Study: Iowa

14. Insurance & Financial Services Cluster 14 Vermont – State Drives Strategy to Become Industry Leader # of Captives Vermont’s Dedicated Strategy  Governor commits to “overtaking Bermuda as world’s largest captive domicile” and heavily promotes the industry.  In 1981, Vermont state officials pass Special Insurer Act  Vermont Dept. of Banking, Insurance, & Securities creates Captive Insurance Section, “dedicated to attracting and serving the captive insurance business.”  Trade association attributes success to state investment, “The accessibility to the governor has been incredible.”  1,064 new jobs  $20 million in fiscal benefits to state at investment of $1 million  $850 million deposited in Vermont banks Sources:Insurance Journal, August 23, 2004; Risk & Insurance, August 2002 and April 14, 2003; Boston Globe, December 12, 2003; IFS Cluster analysis Case Study: Vermont

15. Insurance & Financial Services Cluster 15 Development of Best Practices Approach to Industry Growth in Connecticut Building Consensus for Action  Addressing Public Policy Substantive Issues Taxes, Healthcare Cost Management, Others, including transportation  Addressing Investment in IFS Business Attraction and Retention Dedicated IFS business development personnel Adoption of focused strategy to grow IFS companies and jobs

16. Insurance & Financial Services Cluster January 2005 Robert Flynn Executive Director Insurance & Financial Services Cluster 860.728.2271 RFlynn@metrohartford.com