ACEC BUSINESS INSURANCE TRUST 5-YEAR STRATEGIC PLAN
Adopted: August 8, 2003
Revised: July, 2006

Introduction
This Strategic Plan adopted by the Business Insurance Trust (BIT) on August 8, 2003 and updated in July 2006 replaces the plan developed by the Trustees in 1998. The Trustees believe this plan addresses the key issues and challenges which will face the BIT and the American Council of Engineering Companies (ACEC) member firms through 2008.

The BIT and its Administrator, Marsh, together with the underwriting partners, including The Hartford, are committed to providing a viable business insurance alternative for ACEC member firms. The lines of insurance available to ACEC firms through this program include the following: Property, Inland Marine, General Liability, Umbrella Liability, Automobile, Workers Compensation, Professional Liability, Directors & Officers / Employment Practices (D&O/EPLI), and International Insurance / Difference in Conditions (DIC).

This plan is intended to be a living document reviewed annually by the Trustees, their Administrator and Underwriting partners to remain current to the ever-changing needs of ACEC firms.

Our Vision
To provide and continuously improve upon a business insurance program which is recognized as so attractive that ACEC member firms chose to participate.

Our Mission
To provide a quality business insurance program to benefit all ACEC member firms.

GOAL #1: GROW THE TOTAL NUMBER OF PARTICPATING FIRMS IN THE PROGRAM TO 1,050 BY DECEMBER 31, 2008. GROW THE BOOK OF BUSINESS (PREMIUMS) BY $21,500,000 BY DECEMBER 31, 2008.
Strategies:

• Improve products and services to meet the needs of all ACEC firms
• Improve cooperation between ACEC and The Program Partners
• Involve BIT Trustees in sales
• Develop an ACEC Large Firm Product
• Focus Sales Effort

GOAL #2: MAINTAIN A RETENTION RATE OF AT LEAST 95% OF PARTICPATING FIRMS EACH YEAR.
Strategies:

• Keep the current pricing objective – lowest and best offer first.
• Provide quality service to policyholders
• Involve the Underwriter, Administrator, BIT and M.O. Executive Directors in the Retention Effort

GOAL #3: POSITION THE PROGRAM TO TAKE ADVANTAGE OF AN ALTERNATIVE BUSINESS INSURANCE PROGRAM STRUCTURE IF THE OPPORTUNITY ARISES.
Strategies:

• Reduce the loss ratio to at or below Underwriter targets
• Increase the capital reserve of the Trust
• Develop a policy for distribution of future income
• Monitor the insurance marketplace and evaluate changes and new opportunities

GOAL #4: COMMUNICATE, EDUCATE AND PROMOTE THE BUSINESS INSURANCE PROGRAM THROUGHOUT THE ACEC ORGANIZATION.
Strategies:

• Work with every M.O. to promote the Business Insurance Program
• Interact with ACEC/National Office
• Educate ExCom, the ACEC staff and M.O. Exec. to the Business Insurance Program and the benefits to ACEC, the MOs and Member Firms
• Continue to improve and promote the value of the Program website
• Involve the BIT Trustees in promoting the value of the program
• Use the most effective form of communication for each member firm
• Develop Program Benefits specifically for ACEC firms which would discontinue if a firm drops ACEC membership