• Transportation and storage of vehicles and products for sales • Product liability 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. 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. Innovation & Power of brand Year 2 Power 88 Performance Corporate Data Corporate Governance 40 Maintaining Trust Through Transparency NISSAN Annual Report 2012