Travelers 2013 Annual Report Download - page 18

the agent desktop underwriting process. Select Accounts has established a strong marketing relationship
with its distribution network and has provided this network with defined underwriting policies, a broad
array of products and competitive prices. In addition, the Company has established centralized service
centers to help agents perform many service functions, in return for a fee.
Commercial Accounts sells a broad range of commercial property and casualty insurance products
through a large network of independent agents and brokers, primarily targeting mid-sized businesses
with 50 to 1,000 employees. The Company offers a full line of products to its Commercial Accounts
customers with an emphasis on guaranteed cost programs. Each account is underwritten based on the
unique risk characteristics, loss history and coverage needs of the account. The ability to underwrite at
this detailed level allows Commercial Accounts to have a broad risk appetite and a diversified customer
base.
National Accounts sells a variety of casualty products and services to large companies through a
network of national and regional brokers, primarily utilizing loss-sensitive products in connection with a
large deductible or self-insured program and, to a lesser extent, a retrospectively rated or a guaranteed
cost insurance policy. National Accounts also provides casualty products and services through retail
brokers on an unbundled basis, using third-party administrators for insureds who utilize programs such
as collateralized deductibles, captive reinsurers and self-insurance. National Accounts provides
insurance-related services, such as risk management services, claims administration, loss control and risk
management information services, either in addition to, or in lieu of, pure risk coverage, and generated
$229 million of fee income in 2013, excluding commercial residual market business. The commercial
residual market business of National Accounts sells claims and policy management services to workers’
compensation pools throughout the United States, and generated $111 million in fee income in 2013.
National Accounts services approximately 34% of the total workers’ compensation assigned risk market,
making the Company one of the largest servicing carriers in the industry.
Workers’ compensation accounted for approximately 75% of sales to National Accounts customers
during 2013, based on direct written premiums and fees.
Industry-Focused Underwriting markets commercial property and casualty insurance products and
services through a large network of agents and brokers. These products and services are tailored to
targeted industry segments of significant size and complexity that require unique underwriting, claim,
risk management or other insurance-related products and services.
Target Risk Underwriting markets commercial property and casualty insurance products and
services through a large network of agents and brokers to a wide customer base having specialized
property and casualty coverage requirements.
Specialized Distribution distributes admitted as well as excess and surplus lines property and
casualty products predominantly through selected wholesale agents and program managers, both on a
brokerage and delegated authority underwriting basis. These brokers, wholesale agents and program
managers operate in certain markets that are not typically served by the Company’s appointed retail
agents, or they maintain certain affinity arrangements in specialized market segments. The wholesale
excess and surplus lines market, which is characterized by the absence of rate and form regulation,
allows for more flexibility to write certain classes of business. In working with wholesale agents or
program managers on a brokerage basis, Specialized Distribution underwrites the business and sets the
premium level. In working with wholesale agents or program managers with delegated underwriting
authority, the agents produce and underwrite business subject to underwriting guidelines that have been
specifically designed for each facility or program.
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