Travelers 2015 Annual Report Download - page 8

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.
•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.
•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 $253 million of fee
income in 2015, 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 $138 million of fee income in
2015. National Accounts services approximately 36% 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 73% of sales to National Accounts customers during
2015, based on direct written premiums and fees.
•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; and insurance for the marine transportation
industry, providers of related services and other businesses involved in international trade. In
addition, First Party provides comprehensive breakdown coverages for equipment, including
property and business interruption coverages.
•Specialized Distribution distributes admitted as well as excess and surplus lines property and
casualty products predominantly through selected brokers, wholesale agents, program managers
and specialized retail agents, including on a brokerage and delegated authority underwriting
basis. These brokers, wholesale agents, program managers and specialized retail agents operate
in certain markets in the U.S. 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
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