Built on Relationships. Focused on Solutions. Great American - PowerPoint PPT Presentation

Built on Relationships. Focused on Solutions. Great American Insurance Group International Division May 2017 DIVISION GOES HERE

2 Lease & Loan Insurance Services A range of products to support you A range of insurance products for the finance and leasing industry 1. Physical Damage insurance, sold via Automatic Insurance 2. Physical Damage insurance, sold at Point of Sale 3. GAP insurance for wheeled vehicles 4. ETI and other insurance products DIVISION GOES HERE

3 Physical Damage insurance - overview Our insurance • Covers non-road licenced small and mid-ticket equipment • Provides all-risks insurance including fire, theft and accidental damage • Covers a very wide range of equipment types Our expertise • Extensive experience of providing this to the finance & leasing industry since 1991 • Over €12 billion in lease value has passed through our programmes • Our programmes generate significant fee income for the Lessor / funder • Our out- sourced tracking service secures the Lessor / funder’s portfolio • All activities are fully compliant with local and European regulation DIVISION GOES HERE

4 1. Automatic Insurance • Most r elevant for leases up to €250,000, can extend to €500,000 • Especially effective in the vendor finance / sales aid / flow business market space • Follows up on the lessee’s obligation to insure the financed asset • Lessee has first choice - either they insure the asset, or we do • The lessee can cancel cover at any time, with very generous refund approach • Our insurance is automatically placed post-sale, but cover is effective from the first day of the lease • Result: – The whole lease portfolio which is referred to us is insured – Administration is outsourced to us – High penetration of insurance sales – High commission income generated for Lessor /funder DIVISION GOES HERE

5 Equipment Types Covered Our programme covers a wide range of equipment including: • Construction & Materials Handling Equipment • Manufacturing equipment and Machine Tools • Garage & Automotive Repair Equipment • Photocopiers • Telecommunications • Medical, Dental & Lab Equipment • IT equipment for business & schools • Vending Machines, Retail, Alarms, CCTV, ATMs • Printing, Graphics, Audio/Visual & Photographic Equipment • Restaurant, Catering & Refrigeration Equipment • Beauty, Fitness & Leisure Equipment • Mailing and Packaging Equipment • Office Furniture & Equipment, Fixtures & Fittings • Trailers, grounds-care equipment and golf carts DIVISION GOES HERE

6 Insurance Cover Our insurance cover is very comprehensive, including protection against: • • Fire Vandalism • • Theft Wind • • Accidental damage Frost • • Burglary Flood • • Robbery Power surge • • Theft from a vehicle Lightning • • Employee theft Water damage Example cover - getting your customer back in business • For materials handling / construction equipment, we also cover machine rental while the replacement machine is being built - up to 3 months/ €10,000 • Included free in standard cover Example exclusions - wear and tear, breakdown cover Mechanical & electrical breakdown cover can be added DIVISION GOES HERE

7 Insurance Cover: Best in Class • No excess / deductible / franchise • New-for-old replacement for the full term of the lease • No deduction for depreciation • Assets covered from day one for the full term of the lease • Assets covered in transit / delivery • Insurance premiums are fixed for the full term of lease DIVISION GOES HERE

8 Claims Handling: Best in Class • Rapid, paperless, highly efficient • Lessee calls us by freephone • We check the asset is on cover • Lessee gives a recorded phone statement • The Lessee does not have to do anything else • The claims assessment is normally completed within 48 hours • 98.2% of lessees are satisfied or very satisfied with our claims service* * Source: 2016 claims survey data DIVISION GOES HERE

9 2. Physical Damage- Point of Sale solutions If your finance or leasing company customer wants to sell insurance at the point of sale (POS), we can support this by the traditional POS or advanced POS Waiver approaches. • We cover the same equipment types as already mentioned above • Can provide cover on a new-for-old or like-for-like basis • With or without deductibles • Generate fee income for their business • With our POS Waiver solution, we provide a ready-regulated insurance solution DIVISION GOES HERE

10 2. Physical Damage - Point of Sale solutions The POS Waiver sales process is: • Offer the customer at point of sale a choice between: – a finance/lease agreement at the standard leasing rate, or – a finance/lease agreement where the obligation to insure is waived, at a higher rate The regulatory structure of the Waiver option is: • The Lessor has a Master Policy • The Lessor is sole insured party and policyholder • The Lessee is not an insured party under the policy • The Lessor is not selling insurance • Lease & Loan Insurance Services is the regulated party in the insurance transaction DIVISION GOES HERE

11 3. GAP Insurance What is GAP insurance? – Protects the customer if their vehicle is a total loss through fire, theft or accident – Their comprehensive/casco insurance will pay the fair market value of the vehicle, but: • Will not typically cover the outstanding finance on the vehicle • The customer wants a new vehicle, not a used replacement – how will they fund that? – The answer is GAP insurance We have a range of GAP insurance products designed to: – Protect your customer, and – Generate fee income for the financial institution and/or dealer Our GAP insurance can cover: – Trucks and trailers – Vans / light commercial vehicles – Cars – Other vehicles DIVISION GOES HERE

12 3. GAP Insurance We have a range of GAP insurance to meet client needs, including: – Finance GAP – Return to Invoice GAP – Replacement GAP DIVISION GOES HERE

13 GAP Insurance Finance GAP : Original Invoice Difference between Finance Market Value at time of total loss & Outstanding Finance VALUE Market Value TIME DIVISION GOES HERE

14 GAP Insurance Return to Invoice GAP: Original Invoice Difference between Market Value at time of total loss & Outstanding Finance VALUE Market Value TIME DIVISION GOES HERE

15 GAP Insurance Replacement GAP: Difference between Replacement Cost Market Value at time of total loss & full Replacement Value VALUE Market Value TIME DIVISION GOES HERE

16 3. GAP Insurance Summary of Benefits: • Additional fee income for financial institution and dealer • Protects the customer and helps reduce their financial risk • Can be sold to customers with or without finance on the vehicle • Reduces financial institution’s credit risk • Increases customer satisfaction and retention DIVISION GOES HERE

17 4. Other products We have a range of other products for financial institutions. Examples are: • Early Termination Insurance – Cover for early return of a leased car due to unemployment and other perils – Protection can be designed for individuals or fleet managers • Bespoke physical damage solutions for specific equipment, including – Specialised cover for materials handling equipment – Cover for trailers – Cover for e-bikes • If we don’t have what your customer needs, we may be able to build it for you DIVISION GOES HERE