1. Distinctive. Choice. London Borough of Islington/Homes for Islington Leasehold Insurance Policy Islington Leaseholder Association Meeting 11 th April 2012

2. Distinctive. Choice. Representatives from JLT Public Sector Risks Julia Reffell – Executive Director Alison Goodwin – Account Executive JLT are the appointed insurance broker to London Borough of Islington in respect of the Leasehold Insurance Policy

3. Distinctive. Choice. Agenda Structure Chart Claims terminology Claims experience and analysis of claims Application of policy excess Questions and answers

4. Distinctive. Choice. Structure Chart

5. Distinctive. Choice. Claims Terminology Total Loss Paid The amount actually paid by insurers to the insured for incurred claims Current Reserve The amount that is reserved at that point against all claims but which has not yet been paid Total Cost Incurred The total sum of the Total Claims Paid and Total Claims Reserve Loss Ratio The Total Cost Incurred divided by Total Premium Paid for one insurance period

6. Distinctive. Choice. Claims experience and analysis of claims Seven year claims experience Date of Preparation:February 2012 Source of Information:Ocaso SA UK Policy Year Number of Claims Total Loss PaidTotal Adjuster Paid Current ReserveTotal Loss Incurred Premium PaidLoss Ratio 2005/2006519 £ 701,209.39 £ 90,693.47 £ 39,449.00 £ 831,351.86 £ 941,621.19 88.28% 2006/2007562 £ 719,639.56 £ 94,963.15 £ 29,896.37 £ 844,499.08 £ 820,268.20 102.95% 2007/2008580 £ 837,164.25 £ 113,489.04 £ - £ 950,653.29 £ 966,978.54 98.31% 2008/2009513 £ 918,046.16 £ 96,375.86 £ 94,450.00 £ 1,108,872.02 £ 1,168,224.7994.91% 2009/2010532 £ 959,883.13 £ 90,641.01 £ 6,500.01 £ 1,057,024.15 £ 1,495,256.3370.69% 2010/2011423 £ 736,461.24 £ 64,976.02 £ 145,540.27 £ 946,977.53 £ 1,496,322.0863.28% 2011/2012343 £ 235,040.23 £ 18,605.98 £ 348,348.62 £ 601,994.83 £ 1,602,798.6437.55% Grand Total3472 £ 5,107,443.96 £ 569,744.53 £ 664,184.27 £ 6,341,372.76 £ 8,491,469.77 76.67%

7. Distinctive. Choice. Claims experience and analysis of claims Claims split by peril for 2009/2010 2009/2010 Loss Description Count of Policy YearTotal Loss IncurredAverage Claims Cost ACCIDENTAL DAMAGE124 £ 205,713.15 £ 1,658.98 ATTEMPTED BREAK-IN4 £ 7,995.61 £ 1,998.90 ESCAPE OF WATER280 £ 733,016.19 £ 2,617.91 FIRE11 £ 11,407.85 £ 1,037.08 FLOOD2 £ 26,548.54 £ 13,274.27 GLASS/HOBS/MIRRORS/SANITARY WARE18 £ 12,835.77 £ 713.10 INGRESS OF WATER10 £ 6,973.00 £ 697.30 LIABILITY1 £ - MALICIOUS DAMAGE23 £ 10,487.43 £ 455.98 STORM8 £ 46,286.98 £ 5,785.87 SUBSIDENCE18 £ 25,780.00 £ 1,432.22 THEFT12 £ 9,375.32 £ 781.28 UNDERGROUND SERVICES5 £ 3,605.00 £ 721.00 Grand Total516 £ 1,100,024.84 £ 2,131.83

8. Distinctive. Choice. Claims experience and analysis of claims Claims split by peril for 2011/2012 2011/2012 Loss Description Count of Policy YearTotal Loss Incurred Average Claims Cost ACCIDENTAL DAMAGE60 £ 41,458.51 £ 690.98 ATTEMPTED BREAK-IN5 £ 2,380.20 £ 476.04 ESCAPE OF WATER211 £ 422,516.15 £ 2,002.45 FIRE5 £ 73,725.82 £ 14,745.16 GLASS/HOBS/MIRRORS/SANITARY WARE15 £ 6,339.60 £ 422.64 INGRESS OF WATER8 £ 1,140.00 £ 142.50 MALICIOUS DAMAGE9 £ 4,320.01 £ 480.00 STORM3 £ 2,379.34 £ 793.11 SUBSIDENCE4 £ 21,170.00 £ 5,292.50 THEFT20 £ 26,300.20 £ 1,315.01 TRACE AND ACCESS1 £ - UNDERGROUND SERVICES2 £ 265.00 £ 132.50 Grand Total343 £ 601,994.83 £ 26,492.89

9. Distinctive. Choice. Average Cost of Claims – 2010/2011 vs 2011/2012 2010/20112011/2012 Loss DescriptionAverage Claims Cost ACCIDENTAL DAMAGE £ 1,658.98 £ 690.98 ATTEMPTED BREAK-IN £ 1,998.90 £ 476.04 ESCAPE OF WATER £ 2,617.91 £ 2,002.45 FIRE £ 1,037.08 £ 14,745.16 GLASS/HOBS/MIRRORS/SANITARY WARE £ 713.10 £ 422.64 INGRESS OF WATER £ 697.30 £ 142.50 MALICIOUS DAMAGE £ 455.98 £ 480.00 STORM £ 5,785.87 £ 793.11 SUBSIDENCE £ 1,432.22 £ 5,292.50 THEFT £ 781.28 £ 1,315.01 TRACE AND ACCESS £ - UNDERGROUND SERVICES £ 721.00 £ 132.50 Grand Total £ 2,131.83 £ 26,492.89

10. Distinctive. Choice. Application of policy excess Current policy excess £150 in respect of escape of water £1,000 in respect of subsidence, landslip or heave £100 in respect of all other claims Payment of policy excess In respect of each and every flat So in the event of an escape of water that affects 2 leasehold flats, each leaseholder has to pay their own excess (total value of excesses paid £300) In respect of each and every loss So if one flat suffers 3 separate incidents of water damage, 3 lots of excess i.e. £450 will be payable by the leaseholder

11. Distinctive. Choice. The leaseholder is always responsible for payment of their policy excess When an Insurance policy is in joint names (London Borough of Islington and leaseholders) the insurer can not make a recovery from the other insured party, even if they believe this party are responsible for the damage. Ocaso can only recover settled claims where they believe a third party (i.e. not when the leaseholder or London Borough of Islington) has been negligent so they could consider a recovery from A contractor A tenant You can only recover your own money so Ocaso can not recover a leaseholders excess on their behalf nor could a leaseholder recover Ocaso’s money

12. Distinctive. Choice. Tenants It is not Ocaso’s policy to recover paid claim costs from tenants for a number of reasons. –The degree of investigation that is required in proving the tenant is negligent –The costs of making the recovery balanced against the likely success

13. Distinctive. Choice. Questions and answers