Travelers 2010 Annual Report Download - page 26

PERSONAL INSURANCE
Personal Insurance writes a broad range of property and casualty insurance covering personal risks.
The primary coverages in Personal Insurance are automobile and homeowners insurance sold to
individuals. These products are distributed through independent agents, sponsoring organizations such
as employee and affinity groups, joint marketing arrangements with other insurers, and direct
marketing.
Selected Product and Distribution Channel Information
The following table sets forth net written premiums for the Personal Insurance segment’s business
by product line for the periods indicated. For a description of the product lines referred to in the
following table, see ‘‘—Product Lines.’’ In addition, see ‘‘—Principal Markets and Methods of
Distribution’’ for a discussion of distribution channels for Personal Insurance’s product lines.
% of Total
(for the year ended December 31, in millions) 2010 2009 2008 2010
By product line:
Automobile ...................................... $3,772 $3,629 $3,660 49.8%
Homeowners and Other ............................. 3,795 3,520 3,335 50.2
Total Personal Insurance ........................... $7,567 $7,149 $6,995 100.0%
Principal Markets and Methods of Distribution
Personal Insurance products are distributed primarily through approximately 12,400 independent
agents located throughout the United States, supported by personnel in 16 marketing regions and seven
service centers. In selecting new independent agencies to distribute its products, Personal Insurance
considers, among other attributes, each agency’s profitability, financial stability, staff experience and
strategic fit with Personal Insurance’s operating and marketing plans. Once an agency is appointed,
Personal Insurance carefully monitors its performance. While the principal markets for Personal
Insurance’s insurance products continue to be in states along the East Coast, California and Texas,
Personal Insurance continues to expand its geographic presence across the United States.
Personal Insurance uses a consistent operating model that provides technological alternatives to
independent agents to maximize their ease of doing business. Personal Insurance independent agents
quote and issue nearly all of Personal Insurance’s new business policies directly from their agencies by
leveraging either their own agency management system or using Personal Insurance’s proprietary quote
and issuance systems which allow agents to rate, quote and issue policies on line. All of these quote
and issue platforms interface with Personal Insurance’s underwriting and rating systems, which monitor
transactions for compliance with Personal Insurance’s underwriting and pricing programs. Business
processed by agents on these platforms is subject to consultative review by Personal Insurance’s
in-house underwriters.
Personal Insurance continues to develop functionality to provide its agents with online service
capabilities packaged together in an agency service portal, including customer service, marketing and
claim functionality. Agencies can also choose to shift the ongoing service responsibility for Personal
Insurance’s customers to one of the Company’s four Customer Care Centers, where the Company
provides, on behalf of an agency, a comprehensive array of direct customer service needs, including
response to billing and coverage inquiries, and policy changes. Approximately 1,950 agents take
advantage of this service alternative.
Personal Insurance also markets through additional distribution channels, including sponsoring
organizations such as employers and consumer associations, and direct marketing. Personal Insurance
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