bcap final presentation

8/8/2019 BCAP Final Presentation

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Green $ense Package


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Green $ense

Green $ense Suite Hybrid auto rewards

Reward consumers for going green when purchasing a newvehicle by offering a discount to their policy should theypurchase a hybrid vehicle

Coverage for the additional cost to replace damaged vehiclewith a hybrid after total loss (within first 3 years of a newcars life)

White goods insurance Coverage for customers damaged white goods after an event Replace the damaged white goods with eco-friendly/energy

efficient upgrades

Green home improvements coverage Provide a discount for customers who choose to upgrade their

home or replace products within the home with

environmentally friendly products


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Good reasons why insurers are at theforefront of the fight against climate

change

They need to identify and assess the impacts it will

have across their business

Insurance products must be

priced to reflect the developing awareness of the risk it poses

They have strong vested interests in reducing that

,risk by supporting the

-transition to a low carboneconomy


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What is the competition isdoing?

Green Gard750 policies sold (2006 2008) totaling $65 million in premiumsCommercial building coverageCustomers can replace standard systems and materials with green ones after a

loss

In the event of a total loss Firemans Fund will pay the cost to rebuild as a greencertified building

Currently approximately 1,350 Commercial insurance policyholders havepurchased Green-Gard endorsements, on policies with premium totaling$125 million

Green Homeowners (2008)31,000 policies in 36 states, $87 million in total premiums

Coverage specifically to policyholders who already have green homes5% discount for homeowners who are already greenGreen Upgrade form - gives building owners the advantage of rebuilding and

replacing with green alternativesCoverage for policyholders who want to upgrade their residences with green

features after a loss using environmental safety and efficiency standardsAdditional premium of 1 to 1.5%

Source: Firemans Fund


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What is the competition doing?

Green Auto Hybrid Upgrade

Created to encourage car owners to go green

Offered as part of Firemans Prestige Auto Premier

policy

Allows owners to upgrade to a hybrid model duringthe first three model-years in the event of a totalloss (option available for five model years).

Source: Firemans Fund

90 percent of American adults are open to choosing a hybrid if they were buying a new vehicle.

-Johnson Controls survey by Harris Interactive


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What is the competition doing?

M&S conducted a survey to more than 2,000 people which

found that 61 percent of respondents would be interested

in insurance coverage that could help them limit theirenvironmental impactCurrent green policies are aimed at helping to reduce energy

use and carbon emissions generated by home ownersOffers replacement appliances or construction work that seeks

to significantly reduce their environmental impactWhen you make an approved claim for dishwashers, washing

machines, refrigerators, tumble dryers, fridges or freezers,they are replaced with new A-rated energy-efficient models

Rebuilding of severely damaged property in line with level 4 of the Code for Sustainable Homes.

( )Marks and Spencer underwritten by AXA isoffering the following in the UK

Source: www.marksandspencer.com


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Green $ense - Trends

43 instances of pay-as-you-drive insurance or credits for low emission vehicles13 microinsurance programs22 companies offering 39 green buildings

products and services9 companies offering carbon offsets to

customers

9 companies making direct investments13 instances insurer financing of green projects


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Green $ense - Trends

U.S. HYBRID MARKET TRENDS (1999 -2009)


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Eco Friendly Shopping Survey Consumer BehaviorReportIn a recent survey conducted in September 2007, 68

percent of respondents say that purchasing ecofriendly products labeled organic, recycled,biodegradable, energy efficient or fair trade isimportant.

14 percent of online shoppers say that it is extremelyimportant to incorporate eco friendly purchases intotheir online shopping.

74 percent of online shoppers responded that it isimportant to be a positive eco friendly example toothers, including their children.

Educated parents are acting on the social and politicalpressures to protect the environment for future

generations.50 ercent of online sho ers sa the ho e to reduce

G ree n $ e n se ConsumerS e n tim en t

Source: www.pricegrabber.com, www.Treehugger.com, Huffington Post
http://www.pricegrabber.com/http://www.pricegrabber.com/


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Green $ense Customer Valueand Target Market

Customer Value Proposition:For the policyholder who wishes to cultivate eco-friendly

behaviors in all aspects of their lives our sociallyresponsible Green $ense Package incorporatescoverage for auto and home and rewards thepolicyholder for making green choices.

Target Market:Current Liberty Mutual policyholders (auto and home)Socially responsible affinity partners (ie. Babson)New car buyers

Younger environmentally conscious consumers (ages 18 50)


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Green $ense consumer motivationfor moving to green proproducts


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Key Takeaways

Major macro trends towards reducinghuman impact on the environment

Political initiatives to reinforce eco-friendly behavior

Growing consumer demand forsustainable products

Major insurers have begun to realize thesize and scope of this opportunity forinsurance products

bcap final presentation

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