Travelers 2014 Annual Report Download - page 9

Table of Contents
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Select Accounts is a leading provider of commercial property and casualty insurance products to small businesses in the U.S.,
generally with fewer than 50 employees, and sells these products through a large network of independent agents and brokers.
Products offered by Select Accounts are guaranteed
- cost policies, including packaged products covering property and liability
exposures. Each small business risk is independently evaluated via an automated underwriting platform which in turn enables
agents to quote, bind and issue a substantial amount of new small business risks at their desktop in an efficient manner that
significantly reduces the time period between quoting a price on a new policy and issuing that policy. Risks with more complex
characteristics are underwritten with the assistance of Company personnel. 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.
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Middle Market sells a broad range of commercial property and casualty insurance products and services through a large network of
independent agents and brokers, primarily targeting mid
- sized businesses in the U.S. with 50 to 1,000 employees. The Company
offers a full line of products to its Middle Market 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 Middle Market to have a broad risk appetite and a diversified customer base. Within Middle Market,
products and services are tailored to certain targeted industry segments of significant size and complexity that require unique
underwriting, claim, risk management or other insurance
- related products and services.
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National Accounts sells a variety of casualty products and services to large companies in the U.S. 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 $251 million of fee income in 2014, 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 $132 million of fee income in 2014. 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 76% of sales to National Accounts customers during 2014, based on
direct written premiums and fees.
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First Party markets commercial property and casualty insurance products and services through a large network of agents and
brokers to a wide customer base in the U.S. having specialized property and casualty coverage requirements. First Party provides
traditional and customized property insurance programs to large and mid
- sized customers, insurance for goods in transit and
movable objects, builders' risk insurance, insurance for the marine transportation industry and related services, as well as other
businesses involved in international trade. In addition, First Party provides comprehensive breakdown coverages for equipment,
including property and business interruption coverages.
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Specialized Distribution distributes admitted as well as excess and surplus lines property and casualty products predominantly
through selected brokers, wholesale agents, program managers
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