Insurance Advisory CommitteeOverview and Member Survey Results

EIM Insurance Advisory Committee (IAC)

• Committee Members• IAC Overview• Task Forces• Member Survey Results• Question

• Edsel L. Carlson (Chairman)- Emera/TECO Energy, Inc.

• Mike McFarland (Vice Chair)- Great River Energy• Dean R. Jobko- NRG Energy• Bob Green- Public Service Enterprise Group

Incorporated• Ron Rispoli- Entergy Services, Inc.• Stephanie Rogers- Plains All American Pipeline, L.P.• Roni A. Salo- ALLETE, Inc.• Forrest L. Strachan- PJM Interconnection, LLC• Tim Underwood- CMS Energy• L. D. Wade- Dominion Energy Services, Inc.• Denise Straka- Calpine Corp.• Chris Gregorio- NextEra Energy, Inc.• Marianna Michael- Algonquin Power and Utility Corp.• Arnold Garcia- Duke Energy, Inc.

IAC Members

4

IAC Overview • The IAC’s main purpose

– respond to questions and assignments from the Board and EIM– provide input to the Board from the EIM Member Risk Managers– the IAC meets at least quarterly

• Some key objectives of the IAC include:– act as a liaison between the Board and Member Risk Managers– conduct special assignments from the Board or staff regarding

emerging industry risk management concerns– be a resource for staff, referencing coverage issues– maintain a core group within the IAC that is familiar with the history of

EIM and the evolution of insurance policy coverages and exclusions

Current Task ForcesAC Quarterly Meetings Agenda

Emerging Risk Cyber Renewables Pollution

6

Current Taskforce Assignments

Insurance Advisory CommitteeMember Survey Results

Insurance Advisory Committee

94% 88% 91% 97%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

I am familiar with the EIMInsurance Advisory Committee

I know who my IACrepresentative is

I am regularly updated on theactivities of the IAC

The IAC adds value to EIM’s operation and strategic direction

Yes

No

Underwriting

47% 51%

51%

50%

46%

40% 35%

11%24%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GL D&O Property Fiduciary CyberLiability

EIM Limits for the following coverages are sufficient

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

51%

37%

56% 44%42%

38% 37%

20%27%

21%

GL D&O Property Fiduciary Cyber Liability

The premium I pay for EIM excess insurance coverage reflects the value of the insurance protection I receive

Underwriting

72%

99% 100% 94%

28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EIM keeps me informed ofdevelopments within the

organization

EIM staff areknowledgeable and

professional

The Energy Schoolprovides value to EIM

members

My company plans to senda Representative to the

Energy School

YesNo

It is Important that EIM…

21%30%

37%

46%36% 36%

77%67%

32%45%

57% 57%

0%

20%

40%

60%

80%

100%

Provide substantialexcess insurance limits

for the long term

Price its insuranceproducts so capacity

remains stable

Provide a meaningfulannual distribution

Regularly providesupdates on financial

performancethroughout the year

Has a strong enterpriserisk management

philosophy

Efficiently manages itsoperating expenses

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Claims

48% 41%

53%

45% 47%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EIM handles claims effectively EIM clearly articulates its position whenthere are claims coverage issues

EIM approaches claims differently thancommercial insurance carriers

Strongly Agree

Agree

Neutral

Biggest Issues Facing the Energy Industry

79%

46%

34%

26%

21%

21%

22%

19%

14%

11%

Aging Infrastructure/Workforce

Regulatory

Distributed Generation

Industry Consolidation

Decreased Energy Consumption

Renewable Energy

Cyber Liability

Environmental

Climate Change

Political Environment

Most Important Risk Management Considerations in the Next Five Years

27%

20%

12%

10%

9%

9%

7%6% Cyber Liability

Cost of Insurance

Regulation

Larger Retentions

Renewable Energy

Wildfire

Aging Workforce

New Technology

Insurance Advisory CommitteeMember Survey Results