Now Ins

High-level priorities

Tasks:

• Send them an LoI
• Get their detailed business plan
• Data request sent
• Waiting for full data
• Triage report, pricing memo by AOF
• Tax representation to be sorted
• Analysis by AOF
• Market study updated
• Go through the analysis
• Present the analysis to Aegean.
• See if we can visit
• By this week we get updated data
• Updated analysis August triangles
• Present structure to Aegean
• Claims handling guidelines received
• Aegean to respond if they can make it work / what they would need
• Group level Due Diligence
• Have a call with them to explain - scheduled for Mar-10th
• Due Diligence for 26th-28th March (CPA)
• Start Triage report (Cedric)
• Review org chat and ops plan for Now Insurance Group
• Receive data required for pricing - still awaiting data (all data received)
• Talk to ACPR on 7th of May as heads-up (experienced MGA, 15 years previously with Accredited/Accelerant, top claims handler and pricing developed by Axeria using their data).
• Chase for data (Valandis) - target Policy data by July 11th, call July 14th and Claims data by end July (policy data received)
• Policy data received. More or less complete.
• Quote for IT development - feedback from Dacian (awaiting pricing for 2 options)
• Include Greece MTPL 1.1 into Romania XL (highlight and include it to the territorial scope but no mindep rate...)
• DRAFT TOBA and KPMG review for FOS confirmation (draft reviewed)
• KPMG Feedback on TOBA
• Send TOBA draft to Manolis
• Dacian + Yiannis call on the logic
• Try to get access to a test environment - not possible
• Call with Axeria IT + Actuarial
• YSAE access to backpopulate data (expect access within 1 month)
• Develop pricing model (Yiannis) -- in progress
• Registration / application - in progress (expected by year end)
• Scraper has been developed
• Design of products / T&C
• POG process
• Fund contribution - make sure we pay in France
• Organise a meeting with IT / Scraper/API
• Figure out Levy contributions - KPMG confirmation on our assumptions
• API code development (Dacian)
• Registration in progress. Last step to get the license - monitor ACPR response by 21/4
• Yiannis in Brucharest to work with Doru/Dacian on rating factors
• Appoint a different Claims Representative (within same Group)
• POA to sign by notary/appostille
• VEL visit Manolis
• Legal Protection contract (ARAG) - to be signed
• Product committee validation - ad hoc
• POG
• Road Side Assistance - contract ( autoliquidate VAT in France) - Accident Care
• Benchmark of the Tariff ( Agent comparison ) Yannis
• Finale TOBA - excluding claims
• Review claim TPA agreement
• Confirm Green Card for Greece
• Sign TOBA and Claims Agreement
• Nat Cat Excess - review (together w/Italy) from 01/01
• Target launch 7/9/2026
• chase the notary
• YSAE - registration (missing new POA with Apostille - target YSAE board in September)

28.08.2024

Presentation on 29.08, LRs are oven 70% , too high for the current commissions structure.

Proposal: Share granular data, with new pricing targeting a lower LR.

Conditions are tight.

Market is soft, we can push the deal when the market turns.

XS cost. 2.5%

16.07.2024

AOF requested more data.

1st submission has good quality.

Visit 12th April 2024

Attendees:

Manolis Haralambis

Nicos Haralambis

Michail Tsatsaronis

George Papayannopoulos

Some sales guys came from the insurance sector, nearly all the rest of the staff didn't come from insurance

• Prefer to train them their way
• Manolis engineering background
• No employee turnover - just a handful of cases in 11 years
• 84 employees now after all acquisitions
• Manolis doesn't like to fire people - creates family-like atmosphere. Prefers to rotate people to different dept if they are not performing

Technology

Microsoft Dynamics basis

AIG branch in Greece use this platform too

Real-time flow of data between all data

As soon as a policy is written, it's entered into a ledger

Transaction-based system

Agent journey

• Can use own system, connect to Aegean via web services
  • Aegean can adjust to any type of request / UW rules for different carriers
  • Full audit trail of any changes to UW rules - who did it and when
• Can access Aegean's system

What does agent see when they log in?

Dashboard

• Documents
  • Underwriting Manual
    • Coverage, deductibles, sum insured, types of vehicles offered
    • General underwriting pre-conditions (e.g. Information required)
    • Premium loadings
    • These are all also built into the system - agent will get an alert if trying to get a quote for a risk outside of UW rules
  • Greek government service to check registration plates with correct owner
    • Govt can directly check uninsured vehicles and fine owners
    • Lots of insurers don't use this system
  • Another system/DB for querying VIN to get details on car
  • Private company with DB for historic accidents for a VIN
• **In Greece, insure the car, not the driver
• Get details on expiring policy - e.g. Will know if they have an existing MOD cover with deductible for €1k, and are requesting deductible of €250
• Theft can be source of fraudulent claims. Lots of checks.
• Can request the latest MOT (car condition report) for comprehensive policies
• If MOT is out of date and accident occurs, must pay, but will then recover
• They have an in-house lawyer dedicated fully to recoveries. Generally successful on smaller claims, but on larger, BI claims, usually the insured won't have the assets to pay a recovery
• **Agents are locked to postal codes in his area - can only write policies with postal codes in this area
  • If he inputs another postal code, he will be asked for extra validation
  • Postal codes arranged by zones. E.g. Zone 1 highest risk. He can only issue for his zone or lower risk. E.g. If in Zone 3, can issue zones 3,4,5
• On MTPL, agent must record identification, license, registration.
  • It is not mandatory to pass on this info
  • But some do
  • On others, they do periodic audits - request documentation for specific risks
  • Also check the info when a claim occurs - if anything was incorrect, they are entitled to a loading if premium should have been different - from inception of policy
  • If risk was outside of UW guidelines, in theory you could try to recover from his PI policy - but this has never happened. Doesn't happen in the market.
  • They have cancelled some agents due to audit findings - usually inaccuracies are typos etc
  • Enter registration number, then details of cars are filled out
  • The agent can change license date, data of birth etc
• On MOD, every car needs a surveyor's report - €19 plus VAT
  • Not market practice
  • Therefore very low hit ratio (95% MTPL)
• On MTPL, underwriting is automatic. Proposal comes to Aegean Uwers, but rule checks are automatic. But underwriters can check everything after issuance - any errors / omissions can endorse the policy
• Some insurers allow issuance up to 45 days before inception

MTPL Rating factors

• • Geographic zone
  • Age
  • Loadings are give in the UW manual
    • If license age <1 year, +30%
  • Drivers age
  • Claims history - 3 years private risks, 2 years taxi (claims history is public DB, which they query)
  • Frequency and severity considered
  • Algorithm calculates total loading including claims history
  • Risk score from 0-65 for each vehicle type (acceleration, weight, age of vehicle)
    • This is Aegean's algorithm
  • Most carriers use 8-12 rate factors
  • We could design something in SQL, or in their system

Claims

• Once info is received, entered into system
• All BI claims go to head of dept, he appoints adjustor
  • They use private investigators - social media etc
• Claims committee
• Opening claims €850 PD, Death €50k, BI €2k
• Accident Care - service that all insurers use - recovery truck attends and does initial assessment
  • Police attendance only mandatory for injuries

Reporting Tool - Click

• SQL based
• Live reporting - shared live with Accredited and Accelerant
• UY 2023 - earned LR 68% as at 8th April
• Premium can be defined as required - e.g. With/without fees
• All UW years 66.5% LR earned (this LR includes IBNR, and all the LRs they are showing)
• UW Year 2019 - 66%
• Original Acq Costs - 28% on net premium, 19% on this premium (gross - consistent with 66% LR)
• MGA over-rider is high
• AccYr 2020 54%, 2021 62%, 2022 65%, 2023 72%, 2024 213%
• Rate change analysis
  • Per product, per duration
• Most of the portfolio is in Athens - historically highest frequency and highest LR
  • They want to expand more in rural areas
  • This means attracting more business from rural agents to their papers and expanding the network by offering their system for free to agents
• Nobody knows the FOS company LRs
• Acceleratnt no fronting fee. Was 6.5% accredited. Down to 3.9%
• *He will send us a sliding scale - what they have and what they need
• Accred - cede policy fees, don't with accel
• 20-23m two papers - both want rid of munich Re
• He will send other products (at least 75% motor) - e.g. New surety product based on renewables - early stage planning only
  • Limit at least €5m, probably up to €10m
  • 0.5% up to 2.5% ROL
    • But they want collateral 30-80%
  • 3-4% without cash collateral will be competitive
• Will send large projects book (2m EUR) and growing up to 8/10m EUR. We would give paper and QS to Axis.