Travelers 2004 Annual Report Download - page 16

underwriting units exist to complement the middle market or specifically respond to the unique or unusual
business client insurance needs. These units are as follows:
• National Property provides insurance coverage for large commercial property schedules and mid-sized
risks covering losses on buildings, business assets and business interruption exposures.
• Transportation provides auto liability, damage coverage, cargo and general liability coverages to the
trucking industry. Products have been developed for Non-fleet (generally 1-10 units) and Fleet (11+
units) customers and are distributed through general agents.
• Boiler and Machinery provides comprehensive breakdown coverages for equipment including property
and business income coverages. Through the BoilerRe unit, Boiler and Machinery also provides
reinsurance, underwriting, engineering, claim handling and risk management services to other property
casualty carriers that do not have in-house expertise.
• Inland Marine provides insurance which generally covers articles that may be transported from one
place to another, goods in transit other than transoceanic and movable objects. Coverages include
builder’s risk, contractor’s equipment, fine arts, jewelers, motor truck cargo and transportation risks.
• Agribusiness offers property and liability coverages other than workers’ compensation for farms,
ranches and larger commercial growers of agricultural products.
• Excess and Surplus coverages are written on a non-admitted basis through established wholesalers.
Coverages typically underwritten include commercial auto and general liability.
• National Programs offers tailored insurance products to commercial insureds with similar risk
characteristics, underwritten on a program basis. Programs are typically marketed through a single
distribution channel. The targeted industries include entertainment, leisure, service, retail and sports.
Select Accounts is a leading provider of property casualty products to small businesses. It generally serves
firms with one to 75 employees and generally less complex exposures. Products offered by Select Accounts are
guaranteed cost policies, often a packaged product covering property and liability exposures. Products are sold
through independent agents and brokers, who are often the same agents and brokers that sell the Company’s
Commercial Accounts, Specialty and Personal products. In addition to the traditional small commercial agency
network, Select Accounts has a dedicated servicing unit that serves unique customer needs, including small
national programs, architects and engineers, and emerging distribution markets.
Select Accounts offers its independent agents a system for small businesses that helps them connect all
aspects of sales and service through a comprehensive service platform. Components of the platform include
agency automation capabilities and state-of-the-art service centers that function as an extension of an agency’s
customer service operations, both of which are highly utilized by agencies. More than 89% of Select Accounts’
eligible business volume is processed by agencies using its automated issuance systems, which allow agents to
quote and issue policies from agency offices. Approximately 3,600 agencies have chosen to take advantage of
Select Accounts’ service centers, which offer agencies a wide range of services, including coverage and billing
inquiries, policy changes, the assistance of licensed service professionals and extended hours of operations.
National Accounts sells a variety of casualty products and services to large companies. National Accounts
clients generally select loss-sensitive products in connection with a large deductible or self-insured program and,
to a lesser extent, a retrospectively rated or a guaranteed cost insurance policy. Through a network of field
offices, the Company’s underwriting specialists work closely with national and regional brokers to tailor
insurance programs to meet clients’ needs. Workers’ compensation accounted for approximately 76% of sales to
National Accounts customers during 2004, based on direct written premiums and fees. National Accounts
generated $446 million of fee income in 2004, excluding residual market business discussed below.
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