Travelers 2003 Annual Report Download - page 28

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Travelers offers its independent agents a small business system that helps them connect all aspects of sales and service
through a comprehensive service platform. Components of the platform include agency automation capabilities and a
state-of-the-art service center that functions as an extension of an agency’s customer service operations, both of which
are highly utilized by agencies. More than 87% of Select Accounts eligible business volume is processed by 4,500
agencies using its Issue Express systems, which allow agents to quote and issue policies from agency offices.
Approximately 2,800 agencies have chosen to take advantage of Select Accounts’ service center, which offers
agencies a wide range of services, from coverage and billing inquiries to policy changes; the assistance of licensed
service professionals; and extended hours of operations. Select Accounts is an industry leader in its array of agency
automation solutions. Travelers provides its agents with a wide selection of online service capabilities, including
customer service, marketing and claim functionality. For example, online e-Bill services allow customers to pay bills
and view billing history online. These e-services are easily accessible in real-time via a robust agent Web site.
Personnel in Travelers field offices and other points of local service, which are located throughout the United States,
work closely with agents to ensure a strong local presence in the marketplace. Select Accounts has also established
strict underwriting guidelines integrated with Travelers local field office structures. The agents either submit
applications to Travelers field underwriting locations or service centers for underwriting review, quote, and issuance or
they utilize one of Travelers automated quote and issue systems. Automated transactions are edited by Travelers
systems and issued only if they conform to established underwriting guidelines. Exceptions are reviewed by Travelers
underwriters and retrospective agency audits are conducted on a systematic sampling basis. Travelers uses policy level
management information to analyze and understand results and to identify problems and opportunities.
Bond underwrites and markets its products to national, mid-sized and small businesses and organizations as well as
individuals, and distributes them through national, regional and wholesale brokers, and retail agents primarily
throughout the United States. Travelers believes that it has a competitive advantage with respect to many of these
products based on Bond’s reputation for timely and consistent decision-making, underwriting, claim-handling abilities,
industry expertise and strong producer and customer relationships founded on a nationwide network of underwriting,
industry and claim experts as well as Bond’s ability to cross-sell its products to customers of both Commercial Lines
and Personal Lines.
Bond’s range of products includes fidelity and surety bonds, directors’ and officers’ liability insurance, errors and
omissions insurance, professional liability insurance, employment practices liability insurance, fiduciary liability
insurance, and other related coverages. In addition, Travelers markets packaged products, which combine fidelity,
employment practices liability insurance, directors’ and officers’ liability insurance, other related professional liability
insurance and fiduciary liability insurance into one product with either individual or aggregate limits. Bond is
organized into two broad product line groups: Surety and Executive Liability. Surety is organized around construction
and commercial customers. Executive Liability is organized around commercial and financial services customers.
Gulf provides a broad range of specialty coverages including management and professional liability, excess and
surplus lines, environmental, umbrella and fidelity. Gulf also provides insurance products specifically designed for
financial institutions, the entertainment industry and sports organizations. Gulf’s strategy focuses on identifying
market niches where it has specialized underwriting and claims expertise.
Pricing and Underwriting
Pricing levels for Commercial Lines property and casualty insurance products are generally developed based upon the
frequency and severity of estimated losses, the expenses of producing business and managing claims, and a reasonable
allowance for profit. Travelers has a disciplined approach to underwriting and risk management that emphasizes a
profit-orientation rather than premium volume or market share.