AUDATEX Turkey March 5 2012 Copyright 2008 2012

AUDATEX Turkey March 5 , 2012 © Copyright 2008 2012 Audatex Turkey Global Knowledge, Local Focus.

Pareto Principle_The Solera Way • 80/20 Rule – 80% of the claims are generated by 20% of the population. Focus critical time on understanding large claims dynamics Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr • 20 % of customers destroy value.

Customer segmentation Cumulative contribution to value added 20% destroy value 200% 180 160 140 120 50% don’t create value 100 80 60 40 Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr 20 0% 0% 30% generate 150% of 20 value 40 60 80 100% Percentage of customers Good customers at risk Managing actively ‘Up or out? ’ 3

Pricing cycle Adequate pricing brings profits and increased surplus. Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr Adequate Pricing Inadequate Pricing Low surplus constrains writings; prices rise because supply cannot meet demand. Flush with surplus, competitive pressure leads to decreasing prices. Inadequate pricing leads to net losses and decreased surplus. Indequate Surplus Adequate Surplus

Price optimisation process Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr claim propensity models competitive market analysis constraints optimisation new premiums customer behaviour models customer value models 5

How do you manage your risk? Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr Underwriter Combined Ratio Policy/Client

Integrating structured data Underwriting Business Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr Intelligence Insured Profile Customer demographics Vehicle History Vehicle Info Claims Mgt Electronic inspection Rules Check, Communication Recovery Cash settlement Recovery Close File closure

Identifying risks Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr W/O Foglight With Foglight Fleunce Business Fleunce Extreme Line Diff (%) Insured Sum 43, 800 TL 46, 500 TL 6% MOD 1, 810 TL 1, 765 TL -2 % Spare Part Total 1, 700 TL 3, 400 TL 50 %

Can more be less CASE 1. - (Part replacement) Current labour rate: £ 30. 00 per hour Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr Spare part price: £ 200. 00 Replacement time: 2 hours Labour Cost: 2 X £ 30 £ 60. 00 Total Cost to Insurer £ 260. 00 Parts Margin for repairer: £ 200 X 20% £ 40. 00 Labour margin (Gross Profit) £ 60. 00 X 64% £ 38. 40 Total gross benefit for repairer £ 78. 40 CASE 2. - (Part repair) New labour rate: £ 35. 00 per hour Part repair time: 4 hours Total cost for insurer: 4 x £ 35 Insurer Saves £ 120. 00 £ 140 Labour margin (Gross Profit) £ 140. 00 X 64% Repairer Gross margin Increase of £ 11. 20 over 14% £ 89. 60

Penalties for Poor Data Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr • • Loss of competitiveness Higher reinsurance costs Unfavourable rating agency assessments Loss of investor confidence

Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr Rewarding Robust Data Quality • • • Competitive advantage Improved pricing for insurance Discounted premium for reinsurance Visible Management of Enterprise Risk Credibility with rating agencies Investor confidence

Summary Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr Timely, actionable information allows the claim to move forward more quickly and nimbly. This enables us to manage our loss ratio effectively. Forward thinking insurers will transform their underwriting approach, intergrating the valuable information gathered from claims handling. To realize this, the data is available by teaming up with the right partners.

Audatex Turkey – Çağrı Akın – Cagri. Akin@audatex. com. tr Thank You Istanbul, March 5, 2012 Çağrı AKIN Managing Director at Audatex, Turkey c. akin@autoonline. com. tr Tel +90 (0) 216 554 65 00 www. autoonline. com. tr