Attracting and retaining talent is now a strategic imperative at the board-level of insurance companies. Competition for talent and generational changes as to expectations and values within the work place are contended and affect recruitment objectives.

1. Winning the War for Talent: A Strategic Imperative for the Insurance Industry International Insurance Conference @ Singapore, 2008 © Copyright 2008 Callahan Associates. Confidential. Not for further reproduction or distribution. Ms Sara Yik Managing Partner, Callahan Associates

2. INTENSIFYING COMPETITION FOR TALENT IS THE #1 GLOBAL BUSINESS TRENDS Competition for talent will intensify, become more global Customers of economic activity will shift globally, regionally Technological connectivity will increase Demand for natural resources will grow, as will strain on environment Consumer landscape will change, expand significantly Role, behavior of business will come under increasing scrutiny Ubiquitous access to information will change economics of knowledge Population in developed economies will age Which of the following trends will have the most effect on your business over the next 3 years? % of respondents who chose given trend as 1 of top 3 (n = 1,317) Source: McKinsey Quarterly Global Survey 2007, based on more than 1,317 respondents globally (80% senior executives, 30% CEOs or CFOs) New global industry structures will emerge (e.g., private equity, networked organizations) Public sector activities will balloon

3. TOP 10 STRATEGIC BUSINESS RISKS FOR THE INSURANCE INDUSTRY Source: Ernst & Young Strategic Business Risk: Insurance 2008 Catastrophic Events Channel distribution Climate Change Demographic shifts in core markets Emerging markets Geopolitical or macroeconomic shocks Integration of technology with operations and strategy Legal risk Regulatory intervention Securities markets

4. STRATEGIC BUSINESS RISKS FOR THE INSURANCE INDUSTRY Source: Ernst & Young Strategic Business Risk: Insurance 2008, based on interviews with more than 70 industry analysts from around the world and representatives from over 20 disciplines shaping the business environment (e.g., law, finance, the sciences, business strategy) Legal risk Geopolitical or macroeconomic shocks Integration of technology with operations and strategy Catastrophic events Climate change Demographic shifts in core markets Securities markets Regulatory intervention Emerging markets Channel distribution Macro Threats Operational Threats Sector Threats

5. ‘BELOW THE RADAR’ RISKS THAT HAVE THE POTENTIAL TO EMERGE ONTO THE TOP 10 LIST WITHIN THE NEXT 5 YEARS Source: Ernst & Young Strategic Business Risk: Insurance 2008, based on interviews with more than 70 industry analysts from around the world and representatives from over 20 disciplines shaping the business environment (e.g., law, finance, the sciences, business strategy) 1. Over-Reliance on Model-based Risk Management 2. Threats to the Reputation of the Industry 3. Losing the War for Talent 4. Increasing Corporate Exposure to Global Regulatory Heterogeneity 5. Possible Emergence of Entirely New Risks Legal risk Geopolitical or macroeconomic shocks Integration of technology with operations and strategy Catastrophic events Climate change Demographic shifts in core markets Securities markets Regulatory intervention Emerging markets Channel distribution

7. THE TALENT IMPERATIVE % of respondents (n = 1,317) Source: McKinsey Quarterly Global Survey 2007, based on more than 1,317 respondents globally (80% senior executives, 30% CEOs or CFOs) Does your organization currently have the right people in place to lead the changes necessary to meet the challenges you face? No Don’t know Yes If not, where primarily will your company find the necessary people? If yes, what is the current status of these people? Externally Don’t know Internally Have potential but will need to develop new skills Don’t know Have right skills but in wrong position in organization

13. LOTS OF DIFFERENT WAYS TO GET STARTED…. JUST DO!