May 7, 2008 - Open Letter on Fairness to Good Drivers
Dear Legislator,
We are now more than a month into the new system of
managed competition for auto insurance in Massachusetts.
So far, the system appears to be working very well. All
companies filed for rates lower than the ones the
Commissioner had set last year, and some are significantly
lower than the state-set rates. There is also no
indication of the kinds of market problems and
dislocations that emerged early on under the first attempt
at competitive rating in 1977.
I also want to bring to your attention a
Wall Street
Journal article that appeared in
yesterday's edition of the paper. Entitled "Massachusetts
Miracle," the editorial concludes as follows:
"Massachusetts calls this new regime 'managed competition'
and the early returns already suggests that it beats central
planning [i.e., the old system of state-set rates] by a
mile. A little less management and a little more competition
would produce even more dramatic results. But this is still
Massachusetts we're talking about."
We will continue to keep you apprised of developments
under the new system.
Sincerely,
James T. Harrington
May 6, 2008 - Massachusetts Miracle
Remarkable news from Massachusetts, of all places. Car
insurance premiums are going down. For three decades a Bay
State regulator has set the price of car insurance,
leading to an annual tussle between insurers and consumer
groups over the size of the increase. This led to some of
the highest insurance rates in the country.
Because there was no price competition, some of the
biggest insurers wouldn't do business in the state. During
this exercise in central planning, the number of insurers
dropped to 18 last year, from more than 70 three decades
ago. But as of April 1, the state government decided to
try a little experiment in the free market. We do mean
little - proposed premiums must still be filed with the
regulator, who can approve them or not. And many factors
used to set rates in other states - such as credit history
- are barred.
Even so, this modest experiment in price competition is
already working to reduce costs for consumers.
Progressive, the third-largest insurer in the country,
entered the market May 1 with rates that are on average
18% below the old price-controlled rates. Overall,
premiums in the state are due to fall nearly 8% this year
as insurers adjust to a world in which they need to
compete to attract customers instead of bargaining with
their regulator for price hikes. Imagine: When you remove
price controls, supply increases and prices fall.
Massachusetts calls this new regime "managed competition"
and the early returns already suggest that it beats
central planning by a mile. A little less management and a
little more competition would produce even more dramatic
results. But this is still Massachusetts we're talking
about.
Mar. 5, 2009 - Flood Myths
Don’t Let Spring Floods Drown Your Financial Stability
Travelers urges homeowners to understand the facts of flood coverage
HARTFORD, Conn., - With seasonal Spring flooding right around the corner, Travelers (NYSE: TRV) wants to remind homeowners that flooding is the number one natural disaster in the United States* and that just a couple inches of water can do thousands of dollars of damage to a home.
Unfortunately, without flood insurance, many homeowners will find out too late that they’re not financially protected against flood damage. Denise Thornton’s Louisiana home was ravaged by floodwaters. Unlike some of her neighbors, she had flood insurance. Without the policy, Thornton says her family wouldn’t have been able to rebuild their home. Thornton’s story can be seen on Travelers.com.
There was a very big difference between those who had flood insurance and those who did not. My neighbor across the street did not have insurance. She still is not back,” said Thornton. “There is peace of mind with having flood insurance. The premium is so low when you think about the benefit, if you ever need it, and I tell you, we would not have been able to regain our life without the flood insurance money to help us rebuild our house.”
A recent Mason-Dixon poll revealed that one in five adults weren’t sure whether flood damage was covered in their standard homeowners policy, Travelers is reminding consumers that a separate flood policy is required to financially protect their homes from flood damage.
Many people mistakenly assume flooding is covered in their standard homeowners policy or they don’t think it’s available,” said Chantal Cyr, vice president, Travelers’ Flood Division. “That’s why Travelers emphasizes the importance of reviewing insurance coverages with your carrier or insurance agent annually to make sure you have the right type and amount of coverage.”
Travelers stresses that in most cases it takes 30 days after purchase for a flood policy to take effect, so it’s important to buy insurance before the floodwaters start to rise.
Below, some of the most common flood insurance myths are addressed, in part, with information from FEMA.
MYTH: A standard homeowners policy covers flooding.
FACT: Standard homeowners policies do not cover damage caused by flooding. You can, however, purchase a separate flood policy through The National Flood Insurance Program (NFIP). These policies are sold directly by the NFIP or through Write Your Own insurers such as Travelers.
MYTH: You can’t buy flood insurance if you live in a high-flood-risk area.
FACT: You can buy National Flood Insurance regardless of where you live as long as your community participates in the NFIP. The only exception is in Coastal Barrier Resources System (CBRS) areas.
MYTH: You cannot purchase flood insurance immediately before or during a flood.
FACT: You can purchase National Flood Insurance at any time. However, in most cases, there is a 30-day waiting period from the date of application and premium payment before the policy takes effect. It is important to note that a newly effective policy will not cover a loss that is already in progress as of the effective date of that policy.
MYTH: You are not eligible for flood insurance if your property has previously flooded.
FACT: As long as your community participates in the NFIP, you can purchase a policy, even if your home or business has previously flooded.
MYTH: Federal disaster assistance will reimburse you for a flood loss so you don’t need to buy flood insurance.
FACT: Federal disaster assistance is only available during presidentially declared disasters. Federal disaster assistance is often in the form of a loan that you must pay back with interest. Flood insurance policies pay claims whether or not a disaster is declared.
MYTH: If you don’t live in a flood zone you don’t need to buy flood insurance.
FACT: Everybody lives in a flood zone and you do not have to live near water to suffer a flood loss. Floods can be caused by many things such as heavy rain, melting snow, inadequate or overloaded drainage systems, dam or levee failure, hurricanes, etc.
For more information about flood insurance, contact your independent insurance agent or visit www.travelers.com and www.floodsmart.gov.
About Travelers
The Travelers Indemnity Company. (NYSE: TRV) is a leading property casualty insurer selling primarily through independent agents and brokers. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. The company’s diverse business lines offer its global customers a wide range of coverage in the auto, home and business settings. Travelers is a Fortune 100 company, with 2008 revenues of approximately $24 billion. The company has more than 33,000 employees. For more information on being in-synch, visit www.travelers.com.
*Federal Emergency Management Agency
Media Contacts:
Sheila Trauernicht
860.277.7461
Cell: 860.707.3907
Matt Bordonaro
860.277.7014
Cell: 860.202.3034
Apr. 1, 2009 - Reform Saves Thousands for Drivers
WORCESTER, Mass., April 1, 2009 - Auto insurance reform in the Commonwealth of Massachusetts has meant a wealth of savings which couldn't have come at a better time for consumers. Approximately 75 percent of Travelers of Massachusetts' customers saw savings on their car insurance, with more than a third of its customers realizing savings greater than 10 percent, and some customers saving as much as 30 percent or more.
"With Massachusetts auto insurance reform, my independent agent has been able to offer me several new discounts on my Travelers of Massachusetts auto insurance policy," said Janet Wholley a Travelers of Massachusetts customer. "I received a discount for having roadside assistance, my condo insurance with Travelers and paying my premium in full. My agent has consistently provided me with outstanding service and has saved me 14% in my premium this year!"
When the Massachusetts Department of Insurance launched its "managed competition" system, Travelers of Massachusetts was able to deliver pricing, products and services that best align with consumers needs creating savings for many individuals.
"We're pleased that Massachusetts customers can take advantage of competitive cost savings, discounts and services," said Dick Welch, president and CEO of Travelers of Massachusetts. "By allowing Travelers of Massachusetts to differentiate ourselves by offering unique products, services and prices, our agents are better positioned to guide customers through the coverage selection process and meet individual customer needs."
Many independent insurance agents believe that "managed competition" has created a way for them to help grow their businesses in the midst of a tough economy. Now more than ever, Massachusetts independent agents have become a trusted advisor when it comes to insurance. By demonstrating the value that they bring to customers and providing solid advice and a high-level of service, independent agents are able to retain more customers and best help them with all of their insurance needs.
"Once the managed competition system was put in place, we began to see new offerings and discounts made available by Travelers of Massachusetts," said Peter Lattanzi Jr. from Lattanzi Insurance Agency located in Revere, Mass. "As an independent agent, we always look to take advantage of these discounts for our clients. Our approach is to build a solid insurance program that protects our client's assets. Travelers is helping us build that program with their new offerings. Our clients appreciate this guidance and look to us to help them navigate through all the changes."
Since the start of managed competition Travelers of Massachusetts has been able to provide credits and discounts for Hybrid vehicle drivers, a Multiple Policy Discount (Auto, Home, Renters & Condo) and a Good Student Discount. Additional credits, discounts, products and services are planned for the months ahead.
About Travelers
The Travelers Indemnity Company. (NYSE: TRV) is a leading property casualty insurer selling primarily through independent agents and brokers. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. The company’s diverse business lines offer its global customers a wide range of coverage in the auto, home and business settings. Travelers is a Fortune 100 company, with 2008 revenues of approximately $24 billion. The company has more than 33,000 employees. For more information on being in-synch, visit www.travelers.com.
CONTACTS:
Media:
Matt Bordonaro
860.277.7014
Sheila Trauernicht
860.277.7461
Jun 25, 2009 - Travelers of Massachusetts Opens Second ConciergeCLAIM Center
WORCESTER, Mass., June 25, 2009 - A typical auto claim repair can take 10 to 11 days on average from start to finish. Now, Travelers of Massachusetts is offering a program in the Dedham area that can cut that time in half. Travelers of Massachusetts is announcing the official opening of its innovative ConciergeCLAIM center in Dedham, Mass. When a customer chooses to use ConciergeCLAIM, they leave the logistics of getting their car repaired to Travelers of Massachusetts claim professionals.
"We’re pleased to offer a streamlined service to our customers in the Dedham area, especially a service that gets high marks from customers," said Dick Welch, president and CEO of Travelers of Massachusetts. "ConciergeCLAIM makes the process easier by alleviating the stress and all the time it can take getting a car repaired after an accident."
This is the carrier's second facility of its kind in Massachusetts. The other ConciergeCLAIM location is in Woburn where surveyed customers give the program a satisfaction rating of 97%. The facilities represent both the ongoing investment and commitment Travelers of Massachusetts has made on behalf its customers in the Commonwealth, a commitment that goes back to 1897 in Westfield, Massachusetts when Travelers issued the country’s first-ever auto policy.
Customers choosing to use the full services of either ConciergeCLAIM center receive a vehicle inspection and estimate on the spot, plus, all rental car arrangements are handled on site, getting the customer back on the road in about 30 minutes. Commercial vehicles are welcome at both centers and all customers have the option of taking their vehicle to any repair facility of their choice once they receive their estimate.
"This facility offers consumers a great option for having their cars repaired quickly and easily, expands the economic base and job market in the region, and represents a real advance to consumer choice and services made possible by the implementation of managed competition in the Commonwealth," Undersecretary of Consumer Affairs and Business Regulation Barbara Anthony said in her remarks at the grand opening.
Situated on two acres at 5 Stergis Way in Dedham, the site is central and accessible to customers south of Boston. In addition to its convenient location, Dedham was selected by Travelers of Massachusetts due to claim volume, policy holder population and because the area is prime for future business growth The relationship between Travelers of Massachusetts and the town of Dedham has been instrumental in keeping the project moving forward on schedule.
The center will be staffed by 20 claim professionals and will provide service from 7:00 A.M. through 6:00 P.M. Monday through Friday and on Saturday from 8:00 A.M. through 12:00 P.M.
The Dedham facility brings the number of Travelers ConciergeCLAIM centers around the country to 59.
About Travelers
The Travelers Indemnity Company. (NYSE: TRV) is a leading property casualty insurer selling primarily through independent agents and brokers. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. The company’s diverse business lines offer its global customers a wide range of coverage in the auto, home and business settings. Travelers is a Fortune 100 company, with 2008 revenues of approximately $24 billion. The company has 33,000 employees. For more information on being in-synch, visit www.travelers.com.
Media Contacts:
Sheila Trauernicht
860.277.7461
Matt Bordonaro
860.277.7014
Oct 21, 2009 - Travelers Featured in America's Greatest Brands
Travelers was recently profiled in the 2009 America’s Greatest Brands, a book that
highlights more than 40 of today’s strongest and most trusted American brands. This
is the first time that Travelers has been featured in the book, and Travelers is in
good company with other well-known brands such as Campbell’s, Crest, John Hancock, The
New York Times, Texaco and Xerox. The section on Travelers includes an overview of the
company, including its history, achievements and product lines.
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