Travelers 2007 Annual Report Download - page 5

2007 Annual Report
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We were also pleased with the International operations’
business flows and profitability. We made good progress
with our international growth initiatives, including new
regional branch openings in Canada and the United
Kingdom, and we established Lloyd’s underwriting plat-
forms in China and Singapore. We also received approval
for a representative office in China, which is the first step
in a multi-year process of establishing a primary insurance
operation there.
Delivering more products to our customers – Where
there is opportunity for us – where there is real opportunity
for us – is in leveraging the breadth of our franchise across
individual agents and accounts. Agents have told us that
even greater ease of access is a key lever for them to do
more business with us. To that end, we have continued
to develop the role of our regional presidents.
These executives are charged with coordinating our deliv-
ery of products and services across product lines. As an
important part of this initiative, we have developed new
and more sophisticated management information report-
ing that guides our field team and allows us to measure
progress more effectively.
The result of these efforts for agents and policyholders
is customer-focused total account solutions and greater
responsiveness.
Additional initiatives
Beyond the numbers and progress toward our growth
objectives, 2007 was a year of many accomplishments for
Travelers, among them:
Brand awareness – In the past year, we continued to invest
in improving our brand awareness among consumers, agents
and risk managers. We reacquired the iconic red umbrella
with its history of more than 100 years of communicating
“protection”; we changed our corporate name to Travelers
to achieve consistency across our operations and accelerate
our brand recognition; we inaugurated the Travelers
Championship, revitalizing a PGA TOUR event with a 55-year
tradition in Connecticut; and we delivered award-winning
brand advertisements on television, in print and online.
Claim initiatives – Our Claim operations are benefiting
from a series of actions over the past few years to provide
better service and at the same time reduce costs associated
Travelers proposes creation
of Coastal Hurricane Zones
Insurance coverage for coastal regions
has become increasingly challenging as
the result of expanded coastal develop-
ment, increased property values and the
potential for increased frequency and
severity of coastal storms. The Insurance
Information Institute estimates that today
there is almost $7 trillion of insured
coastal property from Texas to Maine,
so solving today’s coastal hurricane wind
insurance coverage challenge is critical
to the nation’s economic future.
As an industry leader, Travelers has an
obligation to bring thoughtful ideas
forward to deal with the effects of a
changing climate. In 2007, the company
proposed the creation of Coastal Hurricane
Zones along the Gulf and Atlantic Coasts
and is working with state and federal
policymakers, industry associations,
academics and other partners to refine
the concept.
Travelers’ Coastal Hurricane wind proposal
creates a consistent regulatory environ-
ment, with rates and coverage for named
wind storms to be overseen by a federal
agency. Furthermore, the zone concept
would spread the named storm wind risk
among a larger group of policyholders
who are subject to the same risk.
Overall, we recognize that a changing
climate requires a comprehensive response
that will include enforcing stricter building
codes, committing to prudent land-use
planning, improving construction technol-
ogy and acknowledging the true costs of
coastal development. At the same time,
we believe this Coastal Hurricane concept
would, over time, increase the financial
effectiveness of insuring coastal property
for insurers and improve availability
and affordability of insurance coverage
for consumers.