GLOBAL MARKET PERSPECTIVE THE CHANGING GLOBAL INSURANCE MARKET

GLOBAL MARKET PERSPECTIVE THE CHANGING GLOBAL INSURANCE MARKET September 30, 2013 Michael J. Morrissey President & Chief Executive Officer International Insurance Society

International Insurance Society • • Oldest and Largest Industry Association Members from 95 Countries Executives, Regulators & Scholars Open Forum for Discussion Insurance Hall of Fame Shin Research Excellence Awards IIS Annual Seminar

2013 IIS Annual Seminar Highlights • Changing Demographics • The Battle to Define the Optimal Regulatory Framework • Older Age Financial Security in an Aging World • Natural Catastrophes: More Frequent, More Severe

2013 IIS Annual Seminar Highlights • Investing in a Low Yield Environment • Prospects for Increased M&A Activity • Human Capital & the War for Talent • The United Nations Environmental Program – Finance Initiative: Principles for Sustainable Insurance

2013 Monte Carlo Rendezvous Highlights CONVERGENCE • Insurance & Capital Markets • Focus: US Peak Property CAT Risk • Trend to Redeploy Capital to Other Areas • Some (Predictable) Doubters

2013 Monte Carlo Rendezvous Highlights • Potential Alliances with Asset Management Firms • Consideration of Specialty Lines, Primary Businesses & Long Tail Lines • Second Tier Reinsurer Concerns • Downward Pressure on 1/1/17 Renewal Rates

Looking Ahead • Convergence drives more focus on core skill sets. • Regulators are driving insurers to invest inefficiently. • Public/Private Partnerships on the rise in Life and Nonlife issues. • Those able to harness Big Data will triumph in growth and profitability. • Insurance industry increasingly seen as force for the good of society.

THANK YOU • DIFC • Global Reinsurance • Attendees