Allianz Global Corporate & Specialty

Global LiabilitySpecialist solutions for international corporate liability risks

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Business liability exposures arise from many sources: from third parties, from products, from the environment, from IT. They are growing in size and complexity, but remain similar in one crucial dimension: their long-term nature. As a result, a stable partner is key to successfully navigate the liability risks of our modern world.

A stable partner in unstable times – because mistakes happen

The nature and importance of liability insurance in the business environment has changed tremendously in recent decades. The general globalization of businesses, different legal frameworks, changes in legislation, an increasingly litigious culture and new emerging risks all add to the complex nature of liability insurance. This complexity calls for an experienced, reliable partner; a partner with the expertise, capacity and financial strength to support its clients with specialized solutions - anywhere in the world. Allianz Global Corporate & Specialty (AGCS) is that partner.

Consistency in changing environments

Allianz has been providing solutions for liability risks since its very foundation in 1890. For over a century, we have been a stable partner for our clients and brokers, throughout the calmest and most turbulent times. Today, Allianz Global Corporate & Specialty continues this tradition.

We value continuity and strive to develop enduring relationships with our corporate clients and brokers. Because long-tail risks require long-term partnerships.

Market leading capacity and financial stability

Allianz Global Corporate & Specialty has established a reputation as trusted leader of liability risks and programs. We can offer significant capacity that enables us to write even the largest, most complex liability exposures.

In our unstable economic environment, Allianz Global Corporate & Specialty offers outstanding financial strength. Our consistently high ratings that have been repeatedly re-confirmed despite challenging market conditions are proof of our stable financial position. Backed up by the security of Allianz Group, we are a strong, resilient partner our clients can rely on to cover the most complex exposures – now and in the future.

Standard & Poor’s

AA (August 2012)

A.M.Best

A+ (June 2012)

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No two clients are the same, so no two policies are the same. We offer our clients and brokers a wide range of products and services to suit their individual situations – backed up by profound industry expertise.

Tailored solutions and services for our clients’ individual needs

Allianz Global Corporate & Specialty is the Allianz center of competence for corporate risk. Our business liability insurance products typically cover personal or bodily injury, property damage or pure financial loss. They can be offered through individual primary policies, through excess layers and umbrella policies, or through international insurance programs for multiple risks in multiple locations.

We can provide the full range of general liability solutions, including (but not limited to):• Public and products liability• Environmental liability• Product recall• Clinical trials• IT liability

In-depth expertise and industry knowledge

We strive to provide best-in-class insurance cover and solutions for our clients. To ensure we can deliver that, we have assembled a competent liability team, uniting specialists from underwriting, risk consulting, claims and market management. With an average experience of more than ten years, our experts come from a broad range of professional backgrounds, including lawyers, engineers, business administrators, actuaries and mathematicians. They understand the industry-specific risks and special requirements our clients have, making them knowledgeable and valuable partners.

While we pride ourselves in having some of the broadest liability experiences of all corporate insurers, we offer particular expertise in the following sectors:

• Manufacturing & construction• Power & utilities (incl. renewable energies)• Pharmaceuticals and chemicals• Telecommunications• Automotive• Food and beverages

Besides liability insurance, Allianz Global Corporate & Specialty covers the whole range of corporate and specialty risks, from aviation to property.

We thrive on the challenge of creating tailored solutions for complex, international risks.

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Our philosophy: client focus through dialogue

At Allianz Global Corporate & Specialty, we want to build long-term partnerships with our customers. We believe in open dialogue with our clients and their professional advisors, and rely on a flexible, solution oriented approach to find the right cover for every situation.

In a joined-up approach, we involve full client service teams – from underwriting through risk consulting to claims and operations – working closely with clients and brokers to identify their specific needs and requirements. This process is coordinated by our key account managers, experienced insurance professionals, who facilitate cross-line/cross-border cooperation. This ensures that we focus on delivering the right solutions for each customer, giving them access to the full range of Allianz products as required.

Lend Lease is one of the world’s largest property and infrastructure solution providers. In order to fulfill their requirements for a cross-class international insurance program, AGCS put together a client team involving underwriters and key account managers in global and local units, actuaries, claims adjusters in several countries as well as a number of network partners across the globe. The result was a global primary general and construction liability program, tailor-made to fit Lend Lease’s individual needs, led by AGCS as principal carrier.

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“We have a successful long term relationship with Allianz based on healthy respect of the aims and objectives of our own organisations and the mutual value that the relationship brings to each. We embrace insurers who express and exhibit a desire to learn about who we are and what we do. This is what makes our alliance a sustainable one.”

Ian ThomsonVice President, Insurance and Risk Management Centre of Excellence, GlaxoSmithKline

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Global capabilities, strong local presence

Allianz Global Corporate & Specialty has dedicated offices in over 25 countries. In addition, we benefit from Allianz Group’s global network in over 70 countries – the largest own office network of all corporate insurers – plus a close cooperation with our carefully selected network partners. This international network is the basis for our global program capabilities and enables us to issue locally admitted policies in over 150 countries all around the world.

Our network allows us to offer tailored local solutions to customers, taking into account the different local requirements and legal systems, while maintaining our consistent global standards. Local expert underwriters are empowered to make decisions locally; they can react quickly and thoroughly to their clients’ individual needs, while benefiting from full global support when required.

Our approach: Global steering – local execution

Worldwide, Allianz Global Corporate & Specialty operates in over 150 countries and territories through the Allianz Group network and through other network partners. For local contacts, please go to www.agcs.allianz.com

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Our international insurance solutions offer clients doing business in multiple countries the best of both worlds – the consistency and efficiency of a centrally coordinated master policy combined with the ability to issue local policies to ensure compliance with regional legal, regulatory and language requirements.

Global programs & solutions

Allianz Global Corporate & Specialty has an established reputation as a leading provider of global insurance solutions and manages some 1,600 global programs containing over 11,000 local policies. We have in-depth experience in designing tailor-made global solutions to complex international liability risks.

Our international insurance programs combine local policies with a Master Cover providing Difference in Limits / Difference in Conditions (DIL/DIC) cover to eliminate coverage gaps between parent’s policy and local policies. They offer clients a number of key advantages, including:

• Economies of scale, operational efficiencies and centralized access to the global Allianz network

• Central coordination of information about global exposures

• Harmonized global cover across all locations worldwide

• Addressing of local exposures and compliance with local regulatory and fiscal rules via local policies

• Centrally managed risk consulting and claims monitoring/coordination with local risk control and claims handling when needed

Allianz Global Corporate & Specialty utilizes a structured global approach to effectively manage the process – from planning and program design to deployment, monitoring and adjustment.

AGCS manages some 1,600 global programs containing over 11,000 individual policies. More than 650 of these are global liability programs.

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In today’s fast changing environments, businesses are constantly faced with new challenges. Changes in legislation, development of new technologies or emerging risks such as cyber threats require new approaches and solutions not only from clients, but also from their insurers.

Meeting the challenge: product innovation and specialist solutions

Clinical Trials

Pharmaceutical companies and research organizations face increasingly complex worldwide regulations alongside other challenges such as trial safety, speed and quality. Allianz Global Corporate & Specialty recognizes the complexity of today’s clinical research environment and offers tailored Clinical Trials coverage, which:

• involves expert pharmaceutical risk engineers to support underwriters and claim specialists in designing the right solutions for each client’s individual needs

• covers trials around the world, from single studies to multi-location research programs, with locally compliant coverage given on an admitted basis in over 60 countries

• offers speedy and reliable service in issuing quotes and documents which is crucially important in this specialist segment.

Global Pro

With increasing globalization comes a greater risk of product extortion. This is a particular threat for the cosmetics and food industries with the worldwide distribution of their products. The risks of product contamination are severe and manifold, ranging from product recall to financial losses and reputational damage.

As conventional product recall insurance doesn’t adequately cover these serious risks, Allianz Global Corporate & Specialty has developed a specialist product tampering cover: Global Pro. This solution covers recall expenses (such as costs for transportation, informing the public etc.) as well as loss of profits, marketing costs to reinstate reputation and production costs.

Allianz Global Corporate & Specialty constantly strives to develop new liability products to ensure our clients remain protected. We work together with our in-house specialists to respond to changes in market conditions and emerging risks, developing new solutions that meet our clients’ challenges. As a result, we have strengthened our capabilities in niche areas and introduced a number of specialist liability covers in recent years, including:

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EAGLE (Environmental Allianz Global Liability EU)

Environmental risks are a global issue. In the wake of numerous environmental accidents, stricter environmental regulations are being put into place, with international legal concepts relating to environmental protection varying widely. To address these risks, Allianz Global Corporate & Specialty has developed EAGLE, consisting of three modules that cover:

• civil liability • third-party regular liability for clean-up outside a

client’s own property and • regulatory liability for restoring the client’s property

itself.

The product deals with unintended, unexpected and unforeseen environmental damages like long-term seepage as well as sudden events like spills and fires that may occur.

Global Net

In today’s interconnected world, cyber risks are a real threat but tend to be underestimated. With Global and ESI Net, AGCS offers an innovative IT insurance product. This combined liability and engineering product has been introduced in Germany, and is increasingly being offered in selected European markets. It is a modular system that allows clients to tailor insurance protection to their individual needs including

• hardware and hardware business interruption • software and software business interruption • liability insurance for third-party risks • fidelity guarantee insurance.

As the liability component, Global Net covers loss or damage caused by the policyholder, for example data loss, violation of personal rights or business interruption at third parties.

For today’s companies, environmental protection is more than a cost issue – it is also one of potential losses from reputational risks and declining sales. This is why AGCS, together with Allianz Group, has started an initiative to deal with the challenges of the environment and climate change. In addition to boosting public awareness and introducing further products such as EAGLE, the Group’s work includes constant risk management, consulting to prevent losses and regular risk dialogues with clients to keep them aware of the latest regulatory changes.

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Risk consulting is a core part of Allianz Global Corporate & Specialty’s liability service. Our highly specialized risk consultants work with our underwriting and claims experts to exchange best practices and help our clients minimize their risks.

Industry-leading risk consulting services

Allianz Risk Consulting is our specialist unit for technical and scientific risk assessments and hands-on client support ‘in the field’. Our highly qualified experts assist our clients by identifying and measuring liability risks through audits at client sites and desktop reviews of information from clients and third party data providers.

Combining industry-knowledge with years of experience

With professional backgrounds in areas as diverse as engineering, chemistry, economics, bioscience, neurobiochemistry and geology, our risk consultants are highly trained specialists. Having worked in our clients’ industries, they all understand our customers’ business first hand and speak the same language. This expert understanding provides the basis for developing flexible and tailor-made solutions for our clients. With in-depth expertise, long-standing industry experience in all relevant segments and a global setup, our liability risk consultants are best in class in the industry.

Working in partnership for effective risk management

Our risk consultants work in strong collaboration with underwriters and claims specialists. Through their significant involvement in claims handling, they can provide clients with know-how and lessons learned from losses observed in the industry. In addition, they monitor their sectors regarding regulatory, legal and strategic developments as well as changes in business models and risk profiles, and can transfer this knowledge to the clients’ individual situation.

Consistent global standards and a pragmatic approach provide a solid framework for our risk assessments and risk consulting services worldwide. As long-term close cooperation is key to developing tailored loss control solutions, we actively seek an open risk dialogue with our clients. We jointly explore causes of a loss, provide best practice recommendations for the improvement of the risk and work with our clients to minimize their exposures.

Through our large portfolio we assess a wide variety of different risks each year, from smaller to the largest and most complex exposures. Based on our knowledge and experience gained from these risks, we can actively help design the solutions our clients need.

A large international consumer goods company was experiencing problems with the packaging of one of its products: for no apparent reason, the cans were prone to explosion. The client turned to Allianz Risk Consulting to help find the causes of this defect. Our risk consultants invited all parties involved in the production to conduct a comprehensive Failure Mode and Effect Analysis (FMEA). They analyzed potential causes in the complex production process, suggested possible problem solving scenarios and made recommendations for further actions. As a result, all causes leading to the packaging defect could be established and the problem entirely solved.

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A claim is the defining moment for our service – the moment when we deliver on our promise. At Allianz Global Corporate & Specialty, we are committed to delivering this promise every day, wherever you do business.

Excellent claims service – recognized worldwide

Market-leading claims expertise

We pride ourselves in having one of the strongest specialist claims teams of any major insurer – well known to clients, brokers and the market through an established track record of handling complex international claims. We field over 250 claims experts in worldwide locations, of which more than 60 are Liability specialists, with an average claims adjusting experience of more than 10 years. Our technically qualified team includes lawyers, engineers and other specialists offering significant in-house expertise, and benefits from long-established relationships with leading external experts to support us when required.

Global claims management

Our worldwide network enables us to deliver local services with global coordination. Our market reputation as claims leaders means that co-insurers respect our position on complex claims settlements, allowing us to steer programs and resolve disputes rapidly. To ensure consistent quality and transparency for the client, no matter the location, Allianz Global Corporate & Specialty has established proven systems and procedures. Customized, pre-agreed processes deliver flexibility within a robust framework – before and after a claim. So our clients can be confident that we will support them with quick, unbureaucratic help and prompt claims settlements when it matters.

We have an established reputation for prompt and fair claims handling – worldwide, for clients with international exposures, with a global network of contacts and local support.

Due to an alleged product defect, a client based in the US faced a series of class-action lawsuits. A law firm hired by our client charged exorbitant counseling fees but failed in producing a successful defense. The client turned to us for help. AGCS developed a comprehensive defense strategy for all legal proceedings and was able to have many of the charges either completely dropped or settled for nuisance value and to reduce the defense costs significantly.

In 2010, AGCS globally managed:

75,000 claims worldwide

70% As lead insurer Over120

claims of more than €1 million

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Comprehensive risk management solutions worldwide.

Allianz Global Corporate & Specialty

Allianz Global Corporate & Specialty is part of Allianz Group, one of the world’s leading insurance and financial services providers. Established in 1890, the Allianz Group now serves more than 76 million customers with Allianz companies over 70 countries.

Allianz Global Corporate & Specialty AG, a wholly owned subsidiary of Allianz SE, is one of the leading insurers for corporate and specialty clients. Dedicated teams of account managers, expert underwriters, risk consultants, engineers and claims specialists are located worldwide to meet the needs of our clients, combining local knowhow with global reach and in-depth industry expertise.

We offer a full range of products and services coveringcorporate and specialty business, including:

• Alternative Risk Transfer• Aviation• Energy• Engineering & Construction• Financial Lines• Liability (Casualty)• Marine• Property

www.agcs.allianz.com

Allianz Risk Transfer AG, a 100% subsidiary of Allianz Global Corporate & Specialty AG, is Allianz’s center of competence for alternative risk transfer, providing tailored insurance, reinsurance and other non-traditional risk management solutions for corporate and financial clients worldwide.

Allianz Global Corporate & Specialty – at a glance

• Provides insurance for more than half of the Fortune Global 500® companies

• Global reach – represented by a global network in over 150 countries consisting of Allianz companies in more than 70 countries plus carefully selected network partners

• Market-leading capacity to handle the largest risks

• Local decision-making facilitates responsiveness

• Consistently strong ratings: AA (‘Very Strong’) from Standard & Poor’s, A+ (‘Superior’) from A.M. Best

• Single point of access – dedicated client teams and Key Account Managers

• Diversified risk portfolio and capital efficiency offer stability and long-term consistency

• Joins forces with other specialist Allianz units such as Euler Hermes, Allianz Global Investors and Allianz Real Estate to develop tailored, comprehensive risk management solutions

• Captive Services• Claims• Global Programs• Risk Consulting*

* Provided by separate Allianz Service Entities

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Allianz is the main sponsor and financial partner of the Allianz Arena, one of Europe’s most modern and innovative football stadiums and an architectural landmark in Munich.

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Copyright © 2012 Allianz Global Corporate & Specialty AG. All rights reserved.

Allianz Global Corporate & Specialty AG Registered office: Königinstr. 28, 80802 Munich, Germany, Commercial Register: Munich HRB 161095

Allianz Global Corporate & Specialty conducts business worldwide through Allianz Global Corporate & Specialty AG, Allianz Risk Transfer Group, Allianz Global Corporate & Specialty (France), Allianz Global Corporate & Specialty North America (legal names Allianz Global Risks US Insurance Company, Allianz Underwriting Insurance and AGCS Marine Insurance Company), Allianz Insurance Company of Singapore Ltd, Allianz Insurance (Hong Kong) Ltd. and Allianz Fire and Marine Insurance Japan Ltd.

The material contained in this publication is designed to provide general information only. Please be aware that information relating to policy coverage, terms and conditions is provided for guidance purposes only and is not exhaustive and does not form an offer of coverage. Terms and conditions of policies vary between insurers and jurisdictions.

Whilst every effort has been made to ensure that the information provided is accurate, this information is provided without any representation or warranty of any kind about its accuracy and Allianz Global Corporate & Specialty cannot be held responsible for any mistakes or omissions.

www.agcs.allianz.com