St. Paul Introduces ?MainStreet'

By Mark E. Ruquet

NU Online News Service, March 7, 10:20 a.m. EST, NEW YORK?Celebrating the company's 150^th birthday, the head of The St. Paul Companies marked the occasion Wednesday by introducing a new small commercial product that underscores what he said is the company's re-focused position on success.

Jay Fishman, chairman and chief executive officer of the St. Paul, Minn.-based company, introduced the company's new offering of small commercial coverage to more than 200 independent agents from the New York area. The introduction is part of a multistate tour that he said is designed to introduce what he felt had been "a big gap" in the company's offerings, small commercial insurance.

Mr. Fishman said the company's latest venture is part of the repositioning the company has been going through since he took over 18 months ago. When he came on board, he said, the St. Paul was viewed as a niche player "not properly focused on success."

To be successful, he said, the company had to become more mainstream and needed to exit businesses that "threatened its future."

One of those exits was medical malpractice, which Mr. Fishman said he felt if the company had not exited, "would have sunk the company."

Aiming to become a "key trading partner" with agents, the St. Paul has transformed its attitude and focus, working to provide products agents need for their clients.

The new offering, called "St. Paul MainStreet," is designed for commercial small-business clients with revenues of less than $15 million and less than 100 employees, the company said.

The strategy behind growth with this product, said Marita Zuraitis, president and chief executive officer, commercial lines, is to have lines of insurance products for agents to "grow with the customer" as the client's business grows.

The aim, Ms. Zuraitis noted, is that St. Paul is looking to become one of the top three markets agents go to for their clients.

Marc Schmittlein, president, small commercial, said the company asked agents what they need and expect for a successful small commercial lines practice. St. Paul responded by adding new regional sales directors and state account executives to facilitate agents to develop their new accounts with the carrier.

The company's "Main Street" coverage is designed to be competitive with other companies' commercial lines throughout the country, said Mr. Schmittlein. The new product line has been approved in 24 states, with approval for rate and coverage in New York expected in April.

He noted that small commercial makes up a large amount of an agency's business, but only a small proportion of its profit?the 80-20 rule, 80 percent of the business but only 20 percent of profit.

Agents also said they wanted a more cost effective line. The company responded by setting up a customer service center in Atlanta for commercial clients. Mr. Schmittlein is looking at setting up a second facility on the West Coast.

The last leg to providing a small commercial line agents will want to use is technology, Mr. Schmittlein explained. He said SPCXpress is the company's online application process that can simplify applying for coverage online.

The software allows agents to fill out an application online. With simple risks, a policy can be quoted and purchased in a matter of minutes, the company said. More complicated applications will receive an answer within 24 hours.

"After you've spent a whole day getting a lead, we'd better be able to respond quickly to you," observed Mr. Fishman. "There is nothing worse than a slow ?no.'"

He added, "We are not looking to push our product on you, our goal is to respond to your needs."

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St. Paul Introduces ?MainStreet'

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