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Legal protection insurance – The German LPI model

Rainer TögelWarsaw, 3th June 2014

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Agenda

Product structure

German legal framework

German LPI business model

Customer satisfaction

D.A.S. - Who we are

German market key figures

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D.A.S. 100 % owned by ERGO (Primary Insurance of Munich Re), ERGO 100 % owned by Munich Re

D.A.S. – Who we are

000

Structure as of 2014

VIWIS GmbH

100%

100 %100 %

100 %

D.A.S. Germany / Munich

100 %

ERGO / Duesseldorf

MR / Munich

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D.A.S. - domestic and international market leader in the field of legal protection insurance

~ 60 % of D.A.S. GWP is outside Germany (CAGR 1990 – 2012: 10 %)

Worldwide market share of 16 %

D.A.S. – Who we are

• 16 countries in Europe• South Korea• Canada

Approx. 12 million customers worldwide

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D.A.S. Allianz RolandARAGÖragAdvocardHUK DeuragLVMR+V

Competitors

Number of LPI insurer

Germany - profitable mature LPI market (~ 42 % household penetration)

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1

%%Market combined ratio in %1

For own account, gross, LOCAL GAAP

Source: GDV, Annual Reports, DI

D.A.S.

German market key figures

123456789

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20112001 2002 2003 2004 20052006 20072008 2009 2010 2012

23 2631 33

4550 49 46 46 49

1976 1980 1985 1990 1995 2005 2008 2009 2010 2011

49

2012

101.399.1

97.494.2

98.7 98.099.3

2005 2006 2007 2008 2009 2010 2011

96.9

2012

Market volume in €m

Premiums written – for own account, gross, LOCAL GAAP

2012

3,343

2007 2008 2009 2010 2011

3,3293,2453,2233,2043,158

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42 % of the worldwide LPI market is in Germany

Source: European Association of Insurers (CEA), German Association of Insurers (GDV), Annual Reports, D.A.S. International research (DI)

Note: figures incl. add-on business, on local GAAP

TOTAL ~ €7.9 bn

World market split according to countries 2011

UK826

€m

Netherlands800

Germany3,329

France910

Belgium389

Austria444

Other1,187

TOTAL ~ €7.9 bn

ARAG723

(9.2%)

Axa~350

(4.4%)

Other~4,755(60.2%)

D.A.S. 1,073 (14.6%)

Generali~347 (~4.4%)

Allianz~636

(8.1%)

€m

World market split according to competitors 2011

TOTAL ~ €7.9 bn

UK826

World market split according to countries 2011

German market key figures

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Lines of LP-BusinessLines of LP-Business

LP as tenant / owner of real LP as tenant / owner of real estateestate LP as landlord of real estateLP as landlord of real estate

(“Family”) LP for private and occupational disputes(“Family”) LP for private and occupational disputes

Motor-LPMotor-LP

Commercial - LPCommercial - LP

Stand alone PoliciesStand alone Policies

Group PoliciesGroup Policies

IndividualsIndividuals CompaniesCompanies

PoliciesPolicies

Product structure

Broad range of LPI products

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German legal framework

LPI market in Germany highly regulated

Legal services only provided by independant lawyers (advocats)

MonopolyLPI is allowed to provide

legal services with inhouseresources (company lawyers)

Germany

Free choice of lawyerby customers

Provider/lawyers chosen by LPI´s

Germany

Free choice

Fixed fees by law

Freely negotiable fees

Germany

Fees

Highly regulated market unregulated free market

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German LPI business model

The change of business model

LPI market strategy until 2005

LPI market strategy

Effects:

- low customer satisfaction - customer wants more than cost reimbursement - customer wants access to law - customer wants solutions for every legal issue - customer wants preventive legal advice

Decrease in premiums !

LPI as cost reimbursementcompany

LPI provides legal serviceswith inhouse resources/

LPI-chosen lawyers

LPI as cost reimbursementcompany

LPI provides legal serviceswith inhouse resources/

LPI-chosen lawyers

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German LPI business model

Today´s business model – Squaring the circle (e.g. @ D.A.S.)

Customer

Lawyer (advocat)

Legal advice over the phone

Providing lawyers

Mediation

Document Check

Web check

D.A.S. App

b

road

ran

ge

of

leg

al s

ervi

ces

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Question: How pleased are you generally with the handling

of your legal matter/LPI case by D.A.S.?

Basis: 200 customers (138 telephone legal advice, 62 mediation), values in percentage

Debt collection

Legal support

Recommendation of lawyers

Legal advice over the phone

Mediation

Case management

Legal information

Final consultation

Elements of legal services

The majority of customers judge the service performance of D.A.S. extremely positiv

Customer satisfaction

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Legal protection insurance – The German LPI model

Rainer TögelWarsaw, 3th June 2014