1. www.trustre.com INSURANCE CHALLENGES IN CEE Sinisa Lovrincevic, M.Sc. Head of Business Development Regional Director & Senior Underwriter - Treaty VI Tashkent International Investment Financial Forum 24 th - 28 th April, 2013 Tashkent, Republic of Uzbekistan

2. Macro Aspect / How Sensitive is Insurance & Reinsurance Business? Complex, uncertain & vulnerable environment / financial, economic, social, political, demographic, climate EU / EURO zone / new members Legislation and regulatory changes / Solvency II, IFRS System of supervision / synchronization of standards Sovereign ratings / company ratings / confidence Risk concentrations & interconnections / megacities, population, value, lines of business Emerging risks / Systemic risks Nat Cat Exposure / frequency & severity © Copyright 2013 TRUST RE All rights reserved. No part of this presentation in all its property may be used or reproduced in any form or by any means without a written permission

3. Micro Aspect / Proactive Response is needed Allocation of the capital Adequate reinsurance protection Prudent pricing / models & tools / uwr experience Competitive advantage / “what if” scenarios Claims settlement / ability to pay the future losses Clear understanding & identification of risks / to meet the client’s requirements Quality & transparency of information & data / quantitative & qualitative assessment Profitability / short & long tail business © Copyright 2013 TRUST RE All rights reserved. No part of this presentation in all its property may be used or reproduced in any form or by any means without a written permission

4. Challenges and Opportunities / Mitigation with the Risks is priority Insurance & Reinsurance / people business / trust & promise Brand name / healthy competition with security Value creation / stakeholders Stability / sustainable growth Control of the risks / efficient risks management & leadership Underwriting discipline / risk appetite & tolerance & limit Active People Engagement / communication, motivation & education Product and service innovation / new technologies and risks Privatization / mergers & acquisitions © Copyright 2013 TRUST RE All rights reserved. No part of this presentation in all its property may be used or reproduced in any form or by any means without a written permission

5. Thank You