Travelers 2013 Annual Report Download - page 21

Geographic Distribution
The following table shows the geographic distribution of Business Insurance’s direct written
premiums for the states that accounted for the majority of premium volume for the year ended
December 31, 2013:
% of
State Total
California .................................................. 13.2%
New York ................................................. 7.9
Texas ..................................................... 7.5
Illinois .................................................... 5.0
Florida ................................................... 4.0
Pennsylvania ................................................ 4.0
New Jersey ................................................ 3.8
Massachusetts .............................................. 3.4
All others(1) ............................................... 51.2
Total ................................................... 100.0%
(1) No other single state accounted for 3.0% or more of the total direct written premiums
written in 2013 by the Business Insurance segment.
Competition
The insurance industry is represented in the commercial marketplace by many insurance
companies of varying size as well as other entities offering risk alternatives, such as self-insured
retentions or captive programs. Market competition works within the insurance regulatory framework to
set the price charged for insurance products and the levels of coverage and service provided. A
company’s success in the competitive commercial insurance landscape is largely measured by its ability
to profitably provide insurance and services, including claims handling and risk control, at prices and
terms that retain existing customers and attract new customers.
Competitors typically write Select Accounts business through independent agents and, to a lesser
extent, regional brokers and direct writers. Both national and regional property and casualty insurance
companies compete in the Select Accounts market which generally comprises lower-hazard, ‘‘Main
Street’’ business customers. Risks are underwritten and priced using standard industry practices and a
combination of proprietary and standard industry product offerings. Competition in this market is
primarily based on product offerings, service levels, ease of doing business and price.
Competitors typically write Commercial Accounts business through independent agents and
brokers. Competitors in this market are primarily national property and casualty insurance companies
that write most classes of business using traditional products and pricing, and regional insurance
companies. Companies compete based on product offerings, service levels, price and claim and loss
prevention services. Efficiency through automation and rapid response time to customer needs is one
key to success in this market.
In the National Accounts market, competition is based on price, product offerings, claim and loss
prevention services, managed care cost containment, risk management information systems and
collateral requirements. National Accounts primarily competes with national property and casualty
insurance companies, as well as with other underwriters of property and casualty insurance in the
alternative risk transfer market, such as self-insurance plans, captives managed by others, and a variety
of other risk-financing vehicles and mechanisms. The residual market division competes for state
contracts to provide claims and policy management services.
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