Travelers 2014 Annual Report Download - page 20

Table of Contents
the cost savings described above, has a lower base commission rate than the Company's existing Quantum Auto 1.0 product. These changes in
cost structure enabled the Company to price Quantum Auto 2.0 more competitively while maintaining expected returns at appropriate levels. By
December 31, 2014, the Company offered Quantum Auto 2.0 in approximately 90% of the states where it plans to offer the product, and the
Company currently expects that, by the end of 2015, it will offer the product in all of those states. The Company intends that, in approved states, all
new accounts will be written using Quantum Auto 2.0. In addition, Quantum Auto 2.0 is available to agents at their discretion for existing accounts.
CLAIMS MANAGEMENT
The Company's claim functions are managed through its Claims Services organization, with locations in the United States and in the countries
where it does business. With more than 11,000 employees, Claims Services employs a group of professionals with diverse skills, including claim
adjusters, appraisers, attorneys, investigators, engineers, accountants, system specialists and training, management and support personnel.
Approved external service providers, such as investigators, attorneys and, in the rare circumstances when necessary, independent adjusters and
appraisers, are available for use as appropriate.
U.S. field claim management teams located in 21 claim centers and 53 satellite and specialty
- only offices in 45 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,
required licenses, 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, while generally
provided locally by staff in the respective international locations due to local knowledge of applicable laws and regulations, is also managed by the
Company's Claims Services organization in the U.S. 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 who 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 technology, management information and data analysis to assist the Company in reviewing its claim practices and results
in order 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 which offers 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.
Claims Services' catastrophe response strategy is to respond to a significant catastrophic event using its own personnel, enabling it to
minimize reliance on independent adjusters and appraisers. The
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