• Transportation and storage of vehicles and products for sales 

This program covers risks relating to transportation and the supply chain for parts and products globally. By covering risks spread geographically under a global program, we can manage loss data on a global basis and ensure stability of insurance costs. 

From fiscal 2011, this program was also combined with Renault’s program for negotiating with insurance companies to achieve best possible results utilizing synergies of scale. 

• Product liability 

To manage this risk, we have insurance programs suitable for the legal systems and practices in each region. The programs are led by the Global Headquarters in order to implement a consistent strategy globally. 

## Utilization of Captive Insurance Company 

For the purpose of more efficient self-retention on a consolidated basis, Nissan Global Reinsurance, a Bermuda-based captive insurance company (an insurance company of the Nissan Group) is utilized to reinsure a certain amount of risk for each of our global programs. 

Utilization of a captive insurance company enables the following: 

• Helps to reduce insurance costs by obtaining the minimum necessary insurance 

• Each group company can obtain necessary coverage 

• Can gather and analyze loss data below self-retained limit 

## Loss Prevention Activities 

Nissan conducts loss prevention activities to improve loss results and reduce the cost of premiums on an ongoing basis. Since the global insurance programs have been introduced, loss prevention activities have been promoted more actively and globally to maintain low premium rates. Examples of Nissan’s loss prevention activities include conducting risk engineering surveys and obtaining recommendations for safety from third-party experts, creating manuals for actions in the event of typhoons and constructing hail nets to prevent hail damage. 

