Travelers 2014 Annual Report Download - page 13

Table of Contents
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.
Domestic
Competitors typically write Select Accounts business through independent agents and, to a lesser extent, regional brokers and as 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 Middle Market business through independent agents and brokers. Several of Middle Market's operations require
unique combinations of industry knowledge, customized coverage, specialized risk control and loss handling services, along with partnerships with
agents and brokers that also focus on these markets. 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 agent,
broker and 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.
First Party and Specialized Distribution compete in focused target markets. Each of these markets is different and requires unique combinations
of industry knowledge, customized coverage, specialized risk control and loss handling services, along with partnerships with agents and brokers
that also focus on these markets. Some of these businesses compete with national carriers with similarly dedicated underwriting and marketing
groups, whereas others compete with smaller regional companies. Each of these businesses has regional structures that allow them to deliver
personalized service and local knowledge to their customer base. Specialized agents and brokers, including wholesale agents and program
managers, supplement this strategy. In all of these businesses, the competitive strategy typically is the application of focused industry knowledge
to insurance and risk needs.
International
International competes with numerous international and domestic insurers in Canada, the United Kingdom and the Republic of Ireland.
Companies compete on the basis of price, product offerings and the level of claim and risk management services provided. The Company has
developed expertise in various markets in these countries similar to those served in the United States and provides both property and casualty
coverage for these markets.
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