Travelers 2008 Annual Report Download - page 6

2008 Annual Report
4
Business Insurance
2008 net written premiums: $11.2 billion
Business Insurance offers a broad array of property and casualty
insurance products and services to its clients, which range from
small “main street” businesses to Fortune® 100 corporations. Business
Insurance is organized into marketing and underwriting groups focused
on particular markets, industries or product lines. Select Accounts
markets packaged property and casualty coverages to small businesses;
Commercial Accounts markets tailored insurance products and services
to mid-sized businesses; and National Accounts markets insurance and
risk management services to large companies. In addition, business
units in the Target Risk Underwriting, Industry-Focused Underwriting
and Specialized Distribution groups provide insurance products and
services to address large property, inland marine, ocean marine,
equipment breakdown and excess casualty risks and tailor coverage
to complex industries, including the oil & gas, technology, agriculture,
trucking, construction and public entity sectors, among others.
2008 Highlights
Select Accounts significantly broadened the capabilities of
TravelersExpressSM
, its industry-leading quote-to-issue process, by
expanding its platform to include workers’ compensation in 47 states
and commercial auto in the first six states of a countrywide rollout.
Select continued to generate growth by helping agents write new
business quickly and easily, and by providing coverage innovations such
as World Business EssentialsSM
, which provides incidental international
coverages for small businesses in one package, and Master PacSM Green
Endorsement, which supports green products, materials and methods
of construction on damaged buildings or business personal property.
Commercial Accounts expanded its appetite for mid-sized business
with the addition of new targeted IndustryEdge® programs to its suite
of industry-specific products and now offers customized solutions to
more than 20 different industry segments. Broadened coverage within
several IndustryEdge segments and expansion into additional industries,
combined with improved business development capabilities, helped
generate growth. These investments, together with specialized claim and
risk management services, have positioned the business well.
National Accounts achieved record customer retention in 2008, driven
by effective relationship management, service delivery and control
of loss costs. Product development included a new deductible program,
which provides insureds with a limited duration for their obligations and
collateral. CustomCompSM
, a new workers’ compensation claim model,
was designed for market launch in the first quarter of 2009. This
product provides more flexibility for large customers and will facilitate
continued growth in the company’s Constitution States Services LLC
claim service business. Operationally, a Web-based, proprietary pricing
tool was implemented to enhance financial management and speed to
market for products.
In the Target Risk and Industry-Focused Underwriting groups, there
were many 2008 highlights, among them:
tAgribusiness continued to grow, further enhancing its position as the
largest writer of farm and ranch insurance written exclusively through
independent agents. This consistent growth can be attributed to
specialized underwriting, broad products, a strong sales culture and
easy-to-use systems, such as the recently introduced TAgSSM
, which
allows agents to quote and issue coverage more efficiently online.
tBoiler & Machinery completed an upgrade to its EnergyMax 21SM
mono-line equipment breakdown policy — which is now part of the
Travelers IndustryEdge® suite of industry-specific coverage solutions.
tConstruction rolled out new tailored coverages and services to fit the
specific needs of Electrical Contractors and Plumbing and Mechanical
Contractors as part of a new business initiative to address the needs
of specialized contractors. Previously, coverages were added for
Bridge, Concrete, Fire Sprinkler, Millwright, and Underground Utility
Contractors, and others are planned for 2009.
tInland Marine expanded its innovative Risk Control and Specialty
Investigative services by introducing the “Sting Trailer” to help com-
bat cargo theft and improve supply chain security for clients. This
innovation, along with educational summits and newsletters, has
enhanced Travelers’ business relationships and law enforcement part-
nerships in the transportation industry. New products were introduced
for Logistics, Transportation and Warehousing risks. New coverage
for Green Building Exposures was introduced for Builders’ Risk and
Installation products, and Motor Truck Cargo was added to IM
ExpressSM, a new online quote tool.
tNational Property maintained solid customer retention despite an
extremely competitive marketplace. During 2008, National Property
expanded its international capabilities and introduced the Global
Country Guide to better serve Travelers’ U.S.-based commercial clients
who have property exposures in other countries and address their
total global coverage needs.
tOcean Marine introduced two new products, Marine Professional
Liability and a unique program for Marine Pilot Associations. Also,
enhancements were made to the Bumbershoot Liability product
and Shipwright Program for Marine Contractors. To make it easier
for agents to place ancillary lines of business, Travelers launched
Ocean ExpressSM
for Ocean Cargo — offering a streamlined Web-
based submit, quote and bind facility to add ocean cargo coverage
for smaller importers and exporters.
Travelers at a glance
Travelers offers a wide variety of property and casualty insurance and surety products and services to businesses,
organizations and individuals in the United States and in selected international markets. In addition, the company can
meet the international insurance needs of its U.S. customers in more than 90 countries worldwide through our owned and
partnered network of insurers. Products are distributed primarily through independent insurance agents and brokers.
Travelers is organized into the following business segments: Business Insurance;Financial, Professional & International
Insurance; and Personal Insurance. For more information about Travelers and its products and services, visit the
company’s Web site, www.travelers.com.