Travelers 2010 Annual Report Download - page 8

8 2010 ANNUAL REPORT
Financial, Professional & International Insurance
2010 Net Written Premiums: $3.2 Billion
Financial, Professional & International Insurance includes the Bond & Financial
Products business and the International business. The Bond & Financial
Products business provides surety, management liability, professional liability
and crime coverages, primarily to U.S.-based businesses. In addition, the
business provides traditional property and casualty coverage to fi nancial
institutions. The International business provides property and casualty
insurance products and management liability, professional liability and
crime coverages in the United Kingdom, Canada and the Republic of
Ireland, and internationally through its operations at Lloyd’s.
2010 Highlights
• In November, Travelers announced that it had agreed to enter into a
joint venture with J. Malucelli Participações em Seguros e Resseguros
S.A., the market leader in the surety business in Brazil, based on market
share. Travelers will acquire approximately 43 percent of the Brazilian
company’s common shares, with an option to increase its interest up to
49.9 percent within 18 months. The transaction is subject to customary
closing conditions and is expected to close in the fi rst half of 2011.
Bond & Financial Products continued to bolster its leadership status in
the marketplace through new and enhanced product offerings, including:
• The launch of two new management liability product suites, Executive
Choice+SM for Public Companies and SelectOne+SM for Large Financial
Institutions, that offer agents and customers the ability to streamline
and customize coverage through a fl exible, modular policy. Similar to
the newly enhanced Wrap+® for Private & Non-Profi t Organizations, these
product suites offer the protection customers need today through
fl exible policy options for additional coverage as an insured’s business
or organization grows or changes.
• Signifi cant enhancements to its Identity Fraud Expense Reimbursement
insurance, to provide greater expense reimbursement for more of the
most frequent problems identity fraud victims experience. These
upgrades come at a time when the number of identity fraud incidents is
on the rise. Expenses now eligible for possible reimbursement include
costs related to medical identity fraud, such as obtaining copies of health
records; expanded attorney’s fees for tax- and employment-related
identity fraud; and fees associated with acquiring new government-
issued identifi cation.
Additional new initiatives and opportunities developed across the
International businesses included the following:
• In Canada, Travelers continued to sharpen its focus on creating
a high-impact sales culture and enhancing relationships with its
broker partners.
• In the United Kingdom, Travelers opened an offi ce in Glasgow, Scotland,
to support the brokers and customers in this region. Travelers also
embarked on an ambitious research effort to assess key broker and
policyholder satisfaction to identify opportunities for future growth.
The company continued to expand its product set with the introduction
of Public Company D&O in the United Kingdom and the enhancement
of its technology product in the United Kingdom and Ireland to provide
greater worldwide coverage for technology companies. The claim
operations in both the United Kingdom and Ireland introduced the
Secure, Respected & Cared For approach to service which has improved
the customer experience. In Ireland, Travelers has continued to
develop its personal lines insurance products to support growth
initiatives in that market.
Personal Insurance
2010 Net Written Premiums: $7.6 Billion
Personal Insurance offers individuals a broad array of property and casualty
insurance products including automobile, homeowners, umbrella,
condominium, tenant, fl ood, identity theft, valuable items, boat and yacht,
and wedding coverages. We make our products available to consumers
through multiple channels, allowing them to choose the options that fi t
best with their lifestyles and preferences. Consumers are able to consult
with one of our approximately 12,400 independent agencies, work with
Travelers directly, or access our products and services through employee
and affi nity groups and joint marketing arrangements.
2010 Highlights
• Auto — Travelers unveiled three new product features in 2010. The
New Car Discount allows customers to save up to 10 percent on collision
coverage for cars less than three years old. Accident Forgiveness provides
another benefi t to our loyal customers: those who earn the benefi t
will see no surcharge for their fi rst qualifying accident. The Paid in Full
Discount offers savings for customers who select one of our convenient
paid-in-full bill plans. Additionally, we expanded our annual policy option
to allow customers to choose their policy term, thereby stabilizing rates
for them over a 12-month period.
• Property — Travelers made it easier than ever to “go green” by offering
customers our GreenHome Upgrade. Customers can purchase an extra
layer of coverage that can help them repair or rebuild with green materials
after a covered loss. Travelers also offers a discount of 5 percent for
customers whose homes are certifi ed green by the Leadership in Energy
and Environmental Design. In partnership with Financial, Professional
& International Insurance, Identity Fraud Expense Reimbursement
coverage was enhanced by adding travel and accommodation expenses,
government-issued identifi cation reapplication fee reimbursement
and attorney fee reimbursement to contest medical, tax and employment
identity fraud.
• Agent Experience — As part of Travelers’ ongoing commitment to
supporting independent agents, we began a rollout of a new quote
and issue system that makes it easier for agents to obtain Travelers
products for their customers. We introduced a redesigned website from
which agents can leverage online marketing/e-commerce tools and
tips and marketing materials to help them attract and retain customers.
Our efforts to help agents achieve business success received global
recognition: Our One2One Direct Marketing system received the Direct
Marketing Association International Bronze ECHO Award, and we secured
our ninth consecutive “Best Practices Award of Excellence” from the
Independent Insurance Agents and Brokers of America (IIABA).
• Customer Experience — Travelers engaged in extensive research in 2010
that gave us insights into the way our customers think about and make
insurance decisions. We responded to customers’ needs for access and
convenience by expanding billing and payment options and increasing
the availability of our service representatives to respond to today’s busy
lifestyles. With our direct-to-consumer channel, we gave travelers.com
a new look and feel, with social media, educational and mobile features,
to appeal to the large and growing population of insurance buyers who
prefer to research, shop and purchase insurance online. Our insurance
primer and coverage calculator gave our consumers the tools to learn
about insurance and what coverage may be right for them. We continue
to build the digital capabilities and infrastructure required to meet our
customers’ needs.
• Claim — In 2010, Travelers launched a new mobile application that allows
auto customers to report claims directly from their mobile devices. We
deployed an innovative customer service training program that engages
participants in crafting a personal approach to customer satisfaction.
We also launched an enhanced customer satisfaction survey which is
enabling us to better track our effectiveness on each claim.
2010 BUSINESS HIGHLIGHTS