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

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May 2017

Great American Insurance Group

International Division

Built on Relationships. Focused on Solutions.

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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

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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

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• 1. Automatic Insurance
• Most relevant 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

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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

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Insurance Cover

• Fire
• Theft
• Accidental damage
• Burglary
• Robbery
• Theft from a vehicle
• Employee theft
• Vandalism
• Wind
• Frost
• Flood
• Power surge
• Lightning
• Water damage

Our insurance cover is very comprehensive, including protection against:

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

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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

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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

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• 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

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• 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

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• 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

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• 3. GAP Insurance

We have a range of GAP insurance to meet client needs, including: – Finance GAP – Return to Invoice GAP – Replacement GAP

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GAP Insurance Finance GAP:

Market Value

VALUE TIME

Original Invoice Finance

Difference between Market Value at time of total loss & Outstanding Finance

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GAP Insurance Return to Invoice GAP:

Market Value

VALUE TIME

Original Invoice

Difference between Market Value at time of total loss & Outstanding Finance

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GAP Insurance Replacement GAP:

Market Value

VALUE TIME

Replacement Cost

Difference between Market Value at time of total loss & full Replacement Value

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• 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

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• 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

• ther 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