Key Focus areas

• Terms
• Servicing
• Flexibility
• Future Proofing
• Partnership

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Account Management

Stewardship meetings will be required with Marsh and Compass. Attendees from the selected insurer should include relationship manager, underwriter(s), claims and key servicing team members. Meetings will focus on areas for continuous improvement, advice from insurer and development of the relationship in general.

Ad hoc meetings and discussions will be required as and when circumstances dictate.

The selected insurer must be able to respond quickly where there are urgent requests, including amendments to, and the provision of, certificates.

Supported by the team detailed in our response to Question 1, Allianz will support weekly tracker meetings to ensure key actions for the program are being managed both prior to and at the point of policy inception. Considerations to include:

• local policy status updates to include wording and issuance
• claims management updates (if required) – to include discussions on protocols and ensuring all relevant stakeholders are made aware of processes moving forward
• training and setup of Allianz’s online MyAllianzCommercial platform
• An opportunity to raise any service queries, certification requests etc.

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Q1. Please include details of your proposed team structure, including underwriters, network management, claims colleagues, captive management and any other key personnel. Please identify each of their key roles and responsibilities

Please see contacts listed here

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Terms, Coverage & Growth

Q2. Within the terms, provide a breakdown by each key element e.g. US Auto, US GL, ROW (matrix to be provided). Please include your provision for collateral, the preferred option being a Parental Guarantee.

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Please include your premium terms for an annual placement along with a three-year long-term agreement. This should include your proposed long term agreement wording.

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Option 1;

Primary £15m (US GL SIR: $2m, US Auto $5m, ROW GL £500k, EL £250k, UK Motor TPO £100k).

Global GL: £8.25m
UK & I EL: £250k
Motor | £305k plus ipt retained premium plus €21,150 plus levy for ROI

Total Aggregate £8m split £7.35m GL/EL & £650k Motor

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Option 2;

Primary £15m (US GL SIR: $5m, US Auto $5m, ROW GL £500k, EL £250k, UK Motor TPO £100k).

Global GL: £4.7m
UK & I EL: £250k
Motor | £305k plus ipt retained premium plus €21,150 plus levy for ROI

Total Aggregate £8m split £7.35m GL/EL & £650k Motor

To be noted;

For GL – no collateral needed, just a security clause should we need to call on collateral in future.
Motor - £350k LoC Required
Liability Captive premium to be agreed and in addition.  Depending on levels fronting fee may be required.

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ART US Auto Structured Quote options;

Option 1: Swing deal

• Inception: 30^th September 2025
• Coverage: Auto Liability Only
• Term: 3 Years
• Per Occurrence Attachment: $2,000,000
• Per Occurrence Limit: $3,000,000
• Annual Aggregate Limit: $12,000,000
• Term Aggregate Limit: $36,000,000
• Term Gross Deposit Premium: $7,500,000 (Payable in three annual instalments of $2,500,000)
  
  • Brokerage: 10%

• AP:
  
  • Threshold: $3,000,000
    
  • Rate: 100%
  • AP Max: $17,000,000

• RP:
  
  • Threshold: $3,000,000
    
  • Rate: 100%
  • Max: $3,000,000

• ART Share: [TBC]
• 5% free growth
• TRIA not included but available upon request for additional premium.

‍Option 2: Term Corridor Deductible

• Inception: 30^th September 2025
• Coverage: Auto Liability Only
• Term: 3 Years
• Per Occurrence Attachment: $2,000,000
• Per Occurrence Limit: $3,000,000
• Annual Aggregate Limit: $12,000,000
• Term Corridor Deductible (Aggregate Retention): $24,000,000
• Term Aggregate Limit: $36,000,000
  
  • i.e. Compass Group pays the first $24,000,000 of all losses over the term, Allianz pays the next $12,000,000.
• Term Gross Deposit Premium: $3,000,000 (Payable in three annual instalments of $1,000,000)
  
  • Brokerage: 10%
• ART Share: [TBC]
• 5% free growth
• TRIA not included but available upon request for additional premium.

Option 3: Annual Corridor Deductible

• Inception: 30^th September 2025
• Coverage: Auto Liability Only
• Term: 3 Years
• Per Occurrence Attachment: $2,000,000
• Per Occurrence Limit: $3,000,000
• Annual Corridor Deductible: $9,000,000
• Annual Aggregate Limit (in excess of corridor): $6,000,000
• Term Aggregate Limit: $15,000,000
  
  • i.e. Compass Group pays the first $9,000,000 in losses per year, Allianz pays the next $6,000,000, up to $15,000,000 over the term.

• Term Gross Deposit Premium: $5,000,000 (Payable in three annual instalments of $1,666,666)
  
  • Brokerage: 10%

• RP:
  
  • Threshold: $1,500,000
  • Rate: 100%
  • Max: $1,500,000

• ART Share: [TBC]
• 5% free growth
• TRIA not included but available upon request for additional premium.

Wording: to be agreed but based on the Allianz non-admitted surplus lines manuscript follow form for excess liability which includes, but is not limited to, the following:

• Indemnity based coverage
• Defence expenses inside limits
• Right but not the duty to defend
• Non-cancellable
• Change in Operations Endorsement
• Offset Clause
• Exposure Adjustment Premium Clause
• Exclusions:
  
  • Nuclear Energy
  • War
  • Pollution
  • Communicable Disease (with write back)
  • Confidential or Personal Information and Data Related exclusion (with write back)
  • MCS 90

Please note that the above quote is subject to ART internal approval sign offs including actuarial review. All quotes have been based off assumptions as there are gaps in the information provided, and therefore, to move forward to a bindable quote, these assumptions will need to be verified/additional information provided.

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Q3. Please provide a commitment statement, outlining your partnership approach to Compass’ risk longer term. This should include your approach to large losses impacting the programme and growth within Compass, both organic and inorganic.

Allianz value long term relationships where we can provide long term support and value across multiple lines of business. Many of our Primary relationships have had a tenure of well over 10 years and we have a significant amount of experience of adapting our insurance provisions to meet the continually evolving needs of our clients.

We are aware that Compass Group intend to grow from $40bn to $80bn in a relatively short period of time and our goal is to support these ambitions. In order to do this we will provide industry leading servicing provisions as well as access to teams who can offer market leading non-conventional solutions. We understand the need to make efficient use of Capital and as a business grows, our bespoke approach to structured reinsurance and Captive solutions will enable Compass Group to have access to effective and efficient balance sheet protection across their entire organisation.

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Q4. Please provide detail around the flexibility in coverage provision, and the ability to provide increasingly flexible coverage, across multiple lines of business, as you develop a deeper understanding of Compass through a longer-term partnership.

Allianz pride themselves as the leading provider of Alternative Risk Transfer solutions. Our team work with clients to find an efficient solution blending both risk transfer and risk financing to ensure efficient use of Capital and volatility management.

Having the ART team working alongside our traditional placement teams would allow for Compass to access a much broader range of potential solutions than just traditional alone. With multi-year multi line structured solutions being ART’s core offering, these allow us the flexibility to offer broader coverage options as well as providing solutions for difficult and uninsurable risks. Having a structured partnership between insurer and insured allows clients to benefit from potential long term improvements in risk management by sharing in the underwriting profit, as well as also benefiting from other structural features such as cash flow management, collateral release and solvency relief.

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Q5. In respect of the aforementioned inorganic growth in the form of acquisitions, please outline your expectations in terms of coverage, information provisions, and integration into the Group programme.

Allianz are familiar with working with clients who experience a large amount of inorganic growth. We do need to consider the exposure changes these present, particularly when acquisitions are made in a very different sector. Our expectations would be for early notification of such changes and we would work with the teams involved to gather critical exposure related information such as prior claims, risk management information, revenues, products.

Our standard approach is to automatically include entities within a set % of the companies revenue and falling within the same sector as the business operations already supported. If the sector is different i.e. tour operator vs food service or the turnover is expected to breach the automatic threshold, we would expect prior notification along with information relating to the acquisition so our underwriters can feedback the information needed to include on the program. If, despite best endeavours, the acquisition is due to take place before this information exchange can be arranged, we will aim to be as flexible as possible and grant cover based on specific terms and conditions relating to each case.

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Captive Management & Optimising Risk Financing

Q6. Please provide an overview of your captive operations, highlighting administrative procedures – premium payments, claims invoicing, reinsurance agreements, working with TPAs, certificate issuance.

In terms of renumerating the captive, Allianz only requires the front-end premium to be received in the network locally or centrally (depending on the method of payment agreed). We do not have to have all premium in the U.K. in order to pay the captive. The Multinational Program Manager assigned to Compass would be responsible for ensuring the captive was paid in a timely manner. We are flexible and can pay the captive ‘as and when’ or in a lump sum(s) depending on their preference. We work closely with the captive via email, in person, or over Teams depending on their preference and ensure we have a good working relationship with them, as our reinsurer.

Reinsurance agreements are prepared by both the broker and Allianz, the document is relatively straightforward and will include considerations for the following. As mentioned in our terms, our security requirements for Compass Group are minimal for the Motor and due to the strength of the Captive financials, no collateral is required for the GL. For these reasons, we would expect the implementation of the Captive arrangements to be fairly straightforward.

• Scope
• General Conditions
• Cession arrangements
• Claims Settlement
• Premium / Limits
• Amendments and Alterations
• Commencement
• Termination arrangements
• Litigation / ArbitrationSecurity provisions.

We work collaboratively with captives, meeting them before inception to discuss their requirements and then creating a bespoke captive claims solution for them. We handle many different captive structures and are experts in tailoring the right solution to suit their requirements. We have flexibility in how we book claims through our systems to suit requirements, whether that be booking each individual claim or bypassing our systems entirely. We work closely with all major TPAs and are able to agree delegated authorities within captive retentions where required. We have current delegated authorities with Sedgwicks on international insurance programmes, both where we bypass our systems altogether and also where it follows the insurance provisions and each claim is booked.

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Q7. Please provide commentary on your ability and experience in flexing both:‍‍

a. the coverage provided by the captive (fronted by the insurer), and therefore ability for Compass to fully align the risk coverage with the underlying risk profile.

For clients with a retention strategy and business needs such as Compass we understand the requirement  to tailor both the Master wording and locally issued documents.  We manuscript the majority of our primary wordings and have strong expertise in ensuring coverage provided is clear and meets contractual obligations as they arise.

As well as traditional risk taking multi-national fronting, Allianz also offers an unbundled fronting offering where fronting is a pure service with no risk transfer. This approach can allow captives to therefore be more selective with who they chose as their primary carrier, as without the need to align with traditional lead for their fronting capabilities, this broadens the number of markets available. Unbundling the risk from the fronting service also means that coverage provided from the captive to the business can be broader in cover and is not reliant on the risk appetite of the primary market. As one of the very few insurers in the market who offer this type of fronting Allianz offers our clients the flexibility to choose how they want to place their programme and the coverage provided by the captive.

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b. the risk transfer vs retention flexibility, particularly considering Compass’s bold growth ambitions.

We regularly offer programmes incorporating Deductibles, Self Insured Retentions & Captive reinsurance (or direct).

Being able to utilise the broad suite of Allianz expertise in both the traditional and ART space gives a huge advantage to our clients when it comes to managing retentions and risk transfer. The teams work closely together alongside clients in order to provide various retention and transfer options as required when the business grows and changes. With increased retentions, however, come other risks such as sideways accumulation and increased volatility so we are also able to offer options to protect against these using a structured solution such as a stop loss, retention financing etc.

We have extensive experience with dealing with clients who’s business profile has shifted dramatically during a short space of time, including exponential growth, so we are confident that we would be able to manage Compass’s changing needs over time through a blend of ART and traditional programmes.

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Claims Management

Q8. Please confirm how you intend to meet the claims handling and reporting requirements. Include full consideration of:

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a. the US claims handling, decision making, interaction between the UK (controlling) and US teams and communication processes, large losses, commercial considerations / declinatures / flagging.

We collaborate closely with our US colleagues, assigning a designated US claims adjuster to work alongside a UK Senior Claims Adjuster. Both teams use the same system, enabling instant notification of US claims to the UK handler. The US adjuster can make decisions up to the local policy limit, but any proposed declinature MUST be approved by the UK team to check for any Difference in Conditions. Claims over 1M USD require input from the Global Practice Group Leader and the UK team. We prioritise trust and transparency, adopting a pragmatic approach to claims and maintaining a 'no surprise' culture. For major losses with coverage issues, we promptly highlight concerns to address internal reporting needs early.

Our claims offering is bespoke so we can tailor the frequency of our claims review meetings, loss run reporting, captive reporting and anything else required. We can be entirely flexible with suppliers to ensure Compass get the best possible service from lawyers or other vendors.

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b. DIC/DIL arrangements around underlying policies, local policies or where coverage sits contingent.

Where a DIC/DIL claim arises, the master policy would take over handling the aspect of the claim not covered by the local policy. Our claims handlers in the UK are highly experienced in handling global claims. Where that claim is over 1M USD, the Global Practice Group head will also play a role which ensures we have consistency in our technical expertise globally.

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Q9. Please advise how claims data will be made available, consistently, and how regularly. Highlight any information technology platforms that would be made available.

We would suggest that Compass be onboarded to our online portal - myallianzcommercial where live financial information of large claims will be able to be seen. For the claims within the captive retention and the SIR, there will be a slight delay so the most up to date information will be held by Sedgwicks. Allianz work closely with Sedgwicks on other programmes to report data on a regular basis (monthly,quarterly) to ensure the data fields are aligned to the insureds specification and can report together with them to ensure accuracy of data.

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Risk Management

Q10. Please provide details/suggestions for any risk management – self delivered or provision of bursary – that would add value to Compass.

Allianz very much support work that will aid visibility and mitigation of risks for our clients. We have an excellent risk engineering team who can support a lot of these initiatives and would work alongside Compass Group to deliver services that benefit all parties. We would be open to arranging these discussions soon after inception (if successful) and formalise a proposal of support options.

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Network Management

Q11. Please confirm that you can meet the policy issuance requirements as detailed in ‘Section Eleven’ of the Submission.

Attached is our Multinational Value Proposition which replicates the cover that has been requested. I do not see any issues with the desired Multinational framework that has been requested and agree with their approach.

Q12. Please provide details of any standard service levels that you have in place with any local fronting partners (relevant to the countries in which Compass operates) relating to local policy issuance, collection of premiums, issuance of local certification, etc.

Attached is our Multinational Value Proposition which details our SLA’s with our company owned network and network partners. We can work with Compass & Marsh if there are specific certificate requests and this also links in with the suggested timeline that I have prepared for them. One of the advantages of dealing with our network is that we do not require reinsurance documentation to be finalised before submitting our formal requests. This saves huge time on policy issuance whilst most of our competitors seek to finalise documentation thus delaying policy issuance and overall service/client satisfaction.

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