Travelers 2006 Annual Report Download - page 9

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Net Written Premiums: $3.4 Billion
Financial, Professional & International Insurance includes the
Bond & Financial Products business as well as International and
Lloyd’s businesses. Bond & Financial Products provides surety,
management liability, professional liability and crime coverages, pri-
marily to U.S.-based businesses, both public and private, and to
non-profit entities. Property and casualty products are marketed on
an international basis through operations in the U.K., Republic of
Ireland, Canada and the company’s syndicate at Lloyd’s of London.
2006 Highlights
Bond & Financial Products recently aligned under one manage-
ment and operational structure, which improves distributor access
to the full capabilities of the group and the entire Travelers franchise.
Bond & Financial Products enhanced its position as an industry
leader through innovative new product and service offerings,
including the:
Launch of Wrap+SM
, a modular policy suite of seven different
management liability and crime coverages. Wrap+ is unique in
its flexibility and responsiveness to customer needs. Individual
coverages to address a customer’s exposures can be “snapped
in” seamlessly at renewal or mid-term.
Financial, Professional &
International Insurance
Introduction of a fully customized broad form directors’ &
officers’ liability policy specifically designed for mutual funds
and investment advisers.
Initiation of a risk education program for architects and engineers
catering to more than 7,000 professional liability customers.
Offering of contractual risk mitigation seminars and financial
benchmarking consultations for surety clients. Services such
as these build upon a tradition of excellence and expertise as
the leading U.S. surety underwriter.
In 2006, new opportunities and initiatives developed across
International and Lloyd’s:
In the U.K., the company commenced a relationship with a
London-based underwriting agency focused on sports and
leisure risks, and introduced TechXpress®
, an extension of
the U.S. web-based quote, bind and issue system for small
technology risks.
In Canada, the company leveraged the expertise of Business
Insurance’s National Property and National Programs to
offer insurance products catering to large property risks and
the entertainment industry.
At Lloyd’s, the company enhanced its Marine portfolio with the
addition of a Ports and Terminals product, and made preparations
for the launch of a U. S. General Aviation business.
Net Written Premiums: $6.7 Billion
Personal Insurance offers a broad array of property and casualty
insurance products for individuals and households. Products
include automobile, homeowners, umbrella, condominium, tenant,
flood, identity theft, valuable items, boat and yacht coverages.
Personal Insurance distributes primarily through a network of about
8,700 independent agents, as well as through employee and affin-
ity groups and joint marketing arrangements.
2006 Highlights
Product – Quantum AutoSM , the company’s multivariate pricing
product, continued rolling out to 37 states and fueled a growth
rate surpassing that of the overall personal auto insurance industry.
Similar levels of product sophistication were combined with market
research insights to develop Quantum HomeSM
, which has begun to
roll out. This new product offers a full range of packaged offerings
to appeal to broad segments of the homeowners’ insurance market-
place, while facilitating easier policy quoting and issuing for inde-
pendent agents. Also, Travelers pioneered a hybrid car discount to
reward environmentally conscious consumers, as they have tended
to be safer drivers.
Personal Insurance
Distribution – Over 1,500 independent agency locations were
added to further extend Travelers’ geographic footprint and build
the foundation for future growth. The National Distribution unit is
developing and expanding product distribution through aggregators,
employers, associations, affinity groups and financial institutions
to achieve a broader reach of customers.
Claim – With an ongoing focus on enhancing the customer claim
experience and reducing loss costs, Travelers introduced online
claim reporting and opened 11 new ConciergeClaimSM facilities for
a total of 38 locations in 13 states. The ConciergeClaim program
has received 99 percent customer satisfaction ratings while generat-
ing new customers from among third party claimants. Also, Travelers
is the sole insurance sponsor of the National Hurricane Survival
Initiative, which in partnership with the National Hurricane Center,
the Salvation Army and others educates coastal residents on how
to prepare for a natural disaster.
Operational Effectiveness – Travelers continues to demonstrate
leadership in agency service and was again recognized with
Applied Systems Client Network’s “Interface Partner of the Year”
Award. Industry leading technology allows agents to rate auto and
home policies in real-time, directly through their agency manage-
ment systems, while eliminating duplicate data entry. An integrated
report-ordering capability was added to facilitate easier processing
of homeowners’ policies. These enhancements dramatically influ-
ence the agents’ ability to efficiently write business and streamline
workflows. This technology is being used to provide real-time quotes
to serve consumers who choose to purchase through alternative
distribution channels.