Travelers 2006 Annual Report Download - page 32

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•specialization of claim professionals and segmentation of claims by complexity, as indicated by
severity, coverage and causation, allow the Company to focus its resources effectively;
•effective collaboration, using meaningful management information, across all divisions within the
Company facilitates product analysis and enhances risk selection and risk pricing; and
•excellent customer service enhances customer retention.
The Company’s claims function is managed through itsClaim Services operations. With nearly 13,000
employees, Claim Services employs a diverse group of professionals, including claim adjusters, appraisers,
attorneys, investigators, engineers, accountants, system specialists and training, management and support
personnel. Approved external service providers, such as independent adjusters and appraisers,
investigators and attorneys, are available for use as appropriate.
Field claim management teams located in 29 claim centers and 89 satellite and specialty-only offices in
46 states are organized to maintain focus on the specific claim characteristics unique to the businesses
within the Business Insurance, Financial, Professional & International Insurance, and Personal Insurance
segments. Claim teams with specializedskills, resources, and workflows are matched to the unique
exposures of those businesses with local claim management dedicated to achieving optimal results within
each segment. The Company’s home office operations provide additional support in the form of workflow
design, quality management, information technology, advanced management information and data
analysis, training, financial reporting and control, and human resources strategy. In addition to the field
teams, claim staff is dedicated to each of Personal Insurance’s single state companies in Florida,
Massachusetts and New Jersey. This structure permits the Company to maintain the economies of scale of
a larger, established company while retaining the agility to respond promptly to the needs of customers,
brokers, agents and underwriters. Claims managementfor International is generally provided locally by
staff in the respective international location due to local knowledge of applicable laws and regulations.
An integral part of the Company’s strategy to benefit customers and shareholders is its continuing
industry leadership in the fight against insurance fraud through its Investigative Services unit. The
Company has a nationwide staff of experts that investigate a wide array of insurance fraudschemes using
in-house forensic resources and othertechnological tools. This staff also has specialized expertise in fire
scene examinations, medical provider fraud schemes anddata mining. The Company also dedicates
investigative resources to ensure that violations of law are reported to and prosecuted by law enforcement
agencies.
Claim Services uses advanced technology, management information, and data analysis to assist the
Company in reviewing its claim practices and results to evaluate and improve its performance. The
Company’s claim management strategy is focused onsegmentation of claims and appropriate technical
specialization to drive effective claim resolution. The Company continually monitors its investment in
claim resources to maintain an effective focus onclaim outcomes and a disciplined approach to continual
improvement. In recent years, the Company has invested significant additional resources in many of its
claim handling operations and routinely monitors the effect of its investments to ensure a consistent
optimization between outcomes, cost, and service.
During 2006, Claim Services refined its catastrophic response strategy toincrease the Company’s
ability to respond to a significant catastrophic event using its own personnel, placing less reliance on
independent adjustors and appraisers. The Company established a larger dedicated catastrophe response
team, and trained a larger Enterprise Response Team of existing Company employees who can be
deployed on short notice in the event of a catastrophe that generates claim volume exceeding the capacity
of the dedicated catastrophe response team.
The Company is also a leader in bringing effective claim solutions that provide superior customer
service. One example of this is ConciergeClaimSM, a new auto claim service that features selected