Travelers 2008 Annual Report Download - page 188

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
•Commercial Accounts serves mid-sized businesses for property and casualty products, including
property, general liability, commercial multi-peril, commercial auto and workers’ compensation
insurance.
•National Accounts comprises three business units. The largest provides casualty products and
services to large companies, with particular emphasis on workers’ compensation, general liability
and automobile liability, generally utilizing loss-sensitive products such as collateralized
deductibles or self-insured programs. National Accounts also includes Discover Re, which
provides property and casualty insurance products on an unbundled basis using third-party
administrators for insureds who utilize programs such as collateralized deductibles, captive
reinsurers and self-insurance. In addition, National Accounts includes the commercial residual
market business, which primarily offers workers’ compensation products and services to the
involuntary market.
•Industry-Focused Underwriting. The following units serve targeted industries with differentiated
combinations of insurance coverage, risk management, claims handling and other services:
•Construction serves a broad range of construction businesses, offering guaranteed cost
products for small to mid-sized policyholders and loss sensitive programs for larger
accounts. For the larger accounts, the customer and the Company work together in actively
managing and controlling exposure and claims and they share risk through policy features
such as deductibles or retrospective rating. Products offered include workers’ compensation,
general liability, umbrella, commercial auto, property and inland marine coverages, and
other risk management solutions.
•Technology serves small to large companies involved in telecommunications, information
technology, medical technology and electronics manufacturing, offering a comprehensive
portfolio of products and services. These products include property, commercial auto,
general liability, workers’ compensation, umbrella, internet liability, technology errors and
omissions coverages and global companion products.
•Public Sector Services markets insurance products and services to public entities including
municipalities, counties, Indian Nation gaming and selected special government districts
such as water and sewer utilities. The policies written by this unit typically cover property,
commercial auto, general liability and errors and omissions exposures.
•Oil & Gas provides specialized property and liability products and services for customers
involved in the exploration and production of oil and natural gas, including operators and
drilling contractors, as well as various service and supply companies and manufacturers that
support upstream operations. The policies written by this business group cover risks
including physical damage, liability and business interruption.
•Agribusiness serves small to medium-sized agricultural businesses, including farms, ranches,
wineries and related operations, offering property and liability coverages other than workers’
compensation.
176