I: Introduction

College prepares you for your profession and career. When you graduate, no matter what specialty of expertise you select, you will be asked to write, sell, collaborate, lead and convince others of your ideas. The position paper format is designed to provide that experience. Since our class has approximately 48 students, we need to set up about eight (6) teams. All of you will partner up, 8 per team and submit a power point presentation request for proposal response. Each team will be asked to present their findings and recommendations.

II. Presentation Guidelines

Each team will be required to submit a power point presentation. The presentation itself should be no more than 15-20 minutes. The format of the presentation should be as follows

Part I - Executive Summary: Outline your entire your findings, recommendations and conclusions (on 1 page).

Part II-Body of the response and your recommended program structure(s) in detail.

Part III - Scope of services and platform including fees for services.

Part IV - Appendix with team chart and credentials of team.

***********************************************************************

The product line in competition is Company X's global property & business interruption program - Brokerage Firm is seeking appointment to represent them.

Brokerage Firm term work as a Retail Brokers, the term are:

-Client Executive

-Property Placement

-Captive Manager

-Claim Specialist

-Loss Engineering&

-Service Broker

Company X

REQUEST FOR PROPOSAL

Global Property and Business Interruption Insurance Program

Renewal Date - December 15, 2018

TABLE OF CONTENTS

I.DESCRIPTION

II.PROPOSAL REQUIREMENTS

III.REQUESTED INFORMATION

IV.CONFIDENTIALITY

V.EVALUATION CRITERIA

VI.APPENDIX A

VII.APPENDIX B

VIII.APPENDIX C

I.DESCRIPTION

The Risk & Insurance Management Department has initiated a Request for Proposal for brokerage services relative to the administration, facilitation and procurement of insurance coverages, products, and services in connection with the Global Property and Business Interruption Insurance Program which renews December 15, 2018.

Company X is a global financial services firm with approximately 56,000 employees occupying 888 locations throughout 39 countries. The majority of our buildings are pure office space.We also occupy data centers, trading floors, and roughly 600 branch offices.We have a Total Insured Value of approximately $11.5 billion.This includes Business Interruption values which we allocate to each and every location with the assistance of a forensic accounting firm.An exposure summary is provided in Appendix A.

Additionally, Company X's Property program currently conforms to Basel II requirements and has done so since 2008.The entire Property policy is fronted by Company X's captive insurer which allows the commercial insurance panel to act in a reinsurance capacity.

The current Property insurance program has a limit of USD1 Billion with all other property (AOP) deductibles of $500,000 per occurrence for property damage and $2,500,000 per occurrence for time element losses.Appendix B points out some of the many perils where the policy contains sub-limits.In addition, we utilize our captive insurer to "buy down" this deductible for our smaller offices around the world.They benefit from a $50,000 per loss deductible with a limit of $500,000.

There are many insurance carriers utilized for this program.We enjoy long standing relationships with our Domestic, United Kingdom, and Bermuda markets.A challenging goal is to reduce the number of carriers in the primary layer.Even when capacity enables us to do this, our longevity with many carriers makes it difficult for us to actually eliminate them.This has proven to be difficult due to long-standing relationships and a recent claim payment.

Company X's Property/Business Interruption risk can be characterized as low frequency with high severity potential.Please refer to Appendix C for our loss history.

II.PROPOSAL REQUIREMENTS

Responses are conceptual only.Participants are NOT authorized to approach the insurance market on behalf of Company X in connection with this Request for Proposal.

Proposers must submit one (1) hard copy of their completed proposal.

All pages should be numbered.

III.REQUESTED INFORMATION

1.Describe the structure and staffing of your firm's Property insurance brokerage team.

2.Identify the team members and their respective roles to service the account.

3.Describe and provide an overview of your firm's proposed global property insurance program structure to include:

a.An analysis of the pros and cons of the various program arrangements.

b.Your recommendations for markets, program limits, and retention levels inclusive of any and all pertinent sub-limits and sub-deductibles that may apply.

c.Any challenging or stand out terms and conditions which you have achieved on other accounts and feel you can obtain for this account.

d.A schematic with pricing for any layered structure proposed.

4.Discuss the teams experience with:

a.A Basel II arrangement.

b.A captive fronted program.

5.Describe your Firm's approach and capabilities with respect to:

a.Claims/incident management

b.Loss control/analytics capabilities.

6.State your proposed remuneration for all brokerage services to be provided in connection with this proposal and fee at risk for proposed services.

7.Provide references that we may approach, inclusive of contact information. Please specify the team member that the reference will be addressing and furnish at least one reference for each team member.

V.CONFIDENTIALITY

Any information, records and/or intellectual property provided in the course of responding to the Request for Proposal will become the sole property of Company X's Risk & Insurance Management Department and will not be returned to the proposer.The Risk & Insurance Management Department will maintain the confidentiality of the materials/responses in accordance with the terms of the Consulting Agreement in force between our Firms.

VI.EVALUATION CRITERIA

The responses will be reviewed and evaluated based on qualitative and quantitative measurements.These metrics will include but are not limited to:

Competence, technical expertise, and placement ability.

Brokerage resources, insurance knowledge and relative experience level servicing organizations in the financial services industry.

References from former and existing client base.

Ability to deliver timely and accurate market intelligence on emerging trends, opportunities, and regulatory updates.

Responsiveness and compliance to Request for Proposal including a compelling presentation.

Defined fee compensation and fee at risk for proposed services.

VII.Appendix A

Total Insured Value

$11,596,310,082

U.S.

40,878

Americas (Non U.S.)

903

EMEA

7,000

APAC

6,109

Japan

1,029

Total Number of locations

888

Domestic

760

Foreign

128

New York City (Manhattan)

Total Insured Values

$3,588,706,920

Total Number of Locations

25

London

Total Insured Values

$1,301,225,101

Total Number of Locations

11

Tokyo

Total Insured Values

$217,066,521

Total Number of Locations

5

California

Total Insured Values

$445,547,165

Total Number of Locations

94

VIII.Appendix B

Program Limit of Liability:

USD1,000,000,000 per occurrence as respects all perils and coverages except;

Perils with Sub-limits of Liability (does not include all):

Named Windstorm

Property in the course of construction

Contingent Time Element

Debris Removal

Defense Costs

Earth Movement

Electronic Data Processing Equipment

Extra Expense and Expediting Expense Combined

Fine Arts

Flood

Ingress/Egress

Civil or Military Authority

Land and Water Contamination or Pollutant Clean-up

Leasehold Interest

Professional Fees

Rental Insurance

Service Interruption - Property Damage and Time Element combined

Boiler and Machinery

Time Limits:

Period for Automatic coverage

Extended Period of Liability (Gross Earnings)

Ingress/Egress

Civil or Military Authority

Deductibles (AOP):

USD500,000 per occurrence for Property Damage

USD2,500,000 per occurrence for Time Element.

Sub-Deductibles (does not include all):

Property in Transit

Interruption by Civil or Military Authority

Service Interruption

Ingress/Egress

Earth Movement in California

Earth Movement in Japan

Named Windstorm occurring in Tier I wind zones

Special Flood Hazard Areas of 100 Year Flooding

IX.Appendix C

Company X's Property Claims Since 2004

Date of Loss

Location

Type of Loss

Gross Amount

Net Commercial Reinsurer Payment

08/06/04

San Mateo, CA

Water Damage

$827,549.56

$327,549.56

09/05/04

Florida - Various Locations

Hurricane Frances

$728,379.00

$228,379.00

04/24/05

NYC, NY

Generator Failure

$903,035.20

$403,035.20

05/15/05

Brooklyn, NY

Oil Tank Spill

$1,971,809.57

$1,471,809.57

10/24/05

Florida - Various Locations

Hurricane Wilma

$928,238.00

$428,238.00

10/31/13

NYC and others

Superstorm Sandy

$24,000,000

$20,000,000

Total

$29,359,011.33

$22,859,011.33