Travelers 2010 Annual Report Download - page 30

CLAIMS MANAGEMENT
The Company’s claim functions are managed through its Claims Services operation, with locations
in the United States and in the countries where it does business. With more than 14,000 employees,
Claims Services employs a diverse group of professionals, including claim adjusters, appraisers,
attorneys, investigators, engineers, accountants, system specialists and training, management and
support personnel. Approved external service providers, such as independent adjusters and appraisers,
investigators and attorneys, are available for use as appropriate.
U.S. field claim management teams located in 26 claim centers and 55 satellite and specialty-only
offices in 46 states are organized to maintain focus on the specific claim characteristics unique to the
businesses within the Company’s business segments. Claim teams with specialized skills, resources, and
workflows are matched to the unique exposures of those businesses, with local claims management
dedicated to achieving optimal results within each segment. The Company’s home office operations
provide additional support in the form of workflow design, quality management, information
technology, advanced management information and data analysis, training, financial reporting and
control, and human resources strategy. This structure permits the Company to maintain the economies
of scale of a large, established company while retaining the agility to respond promptly to the needs of
customers, brokers, agents and underwriters. Claims management for International is generally
provided locally by staff in the respective international locations due to local knowledge of applicable
laws and regulations, although it is also managed by the Company’s U.S. Claims Services organization
to leverage that knowledge base and to share best practices.
An integral part of the Company’s strategy to benefit customers and shareholders is its continuing
industry leadership in the fight against insurance fraud through its Investigative Services unit. The
Company has a nationwide staff of experts that investigate a wide array of insurance fraud schemes
using in-house forensic resources and other technological tools. This staff also has specialized expertise
in fire scene examinations, medical provider fraud schemes and data mining. The Company also
dedicates investigative resources to ensure that violations of law are reported to and prosecuted by law
enforcement agencies.
Claims Services uses advanced technology, management information, and data analysis to assist the
Company in reviewing its claim practices and results to evaluate and improve its claims management
performance. The Company’s claims management strategy is focused on segmentation of claims and
appropriate technical specialization to drive effective claim resolution. The Company continually
monitors its investment in claim resources to maintain an effective focus on claim outcomes and a
disciplined approach to continual improvement. The Company operates a state-of-the-art claims
training facility, offering hands-on experiential learning to help ensure that its claim professionals are
properly trained. In recent years, the Company has invested significant additional resources in many of
its claim handling operations and routinely monitors the effect of those investments to ensure a
consistent optimization among outcomes, cost and service.
In recent years, Claims Services refined its catastrophe response strategy to increase the
Company’s ability to respond to a significant catastrophic event using its own personnel, enabling it to
minimize reliance on independent adjustors and appraisers. The Company has developed a large
dedicated catastrophe response team and trained a large Enterprise Response Team of existing
employees who can be deployed on short notice in the event of a catastrophe that generates claim
volume exceeding the capacity of the dedicated catastrophe response team. In recent years, these
internal resources were successfully deployed to respond to a record number of catastrophe claims,
including those resulting from Hurricanes Ike, Gustav and Dolly in 2008.
The Company continues to develop effective claim solutions that provide superior customer
service. One example of this is the Company’s auto claim service that features three Company-owned
auto repair facilities and selected independently-owned auto repair facilities with Company appraisers
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