Imagine hawking accident and health insurance on the Home Shopping Network along with cheap jewelry and auto oil.
It's not the reality in the United States, but ACE Limited Chief Executive Evan Greenberg envisions the possibility and already has established a small presence on some non-U.S. television selling outlets.
Mr. Greenberg, who was highlighting the diversification of his firm's product offerings beyond property-casualty and into accident and health business at an investor conference today, revealed his concept in outlining some novel direct response distribution methods for personal accident insurance.
"We have large telemarketing centers all over the world–in places like Bangkok, Seoul, Madrid. We use direct mail inserts in customers' credit card statements.
In a few countries with Home Shopping Networks, ACE is not selling products but does have a direct response television ad that Mr. Greenberg said "is, believe it or not, very successful."
"People buying insurance on home shopping [television]. That is my dream," he said.
Mr. Greenberg made his remarks during a presentation at the Goldman Sachs Insurance Conference, which was Webcast live this morning.
Globally, he said ACE's accident and health business is growing by 15 percent–and by more than 30 percent in Asia and Latin America.
Besides being a fast growing business, the personal accident business adds attractive diversification and balance to property-casualty business, which is traditionally cyclical, he said.
Noting that p-c insurance is in the early stages of a soft market, he said ACE's overall premium growth rates on that business are "appropriately low."
"We have entered that part of the cycle where significant revenue growth is for vanity and not for earnings. ACE will not play that game," he said.
In addition to international A&H business, Mr. Greenberg listed excess and surplus lines and middle market specialty p-c business in the United States, as well as p-c coverage for small and medium-sized businesses in Asia, as areas where there are still opportunities to grow at reasonable prices.
He also noted that ACE's life insurance–largely focused in Asia–"is small but growing," adding that in spite of its size, ACE remains committed to it.
"Building a life insurance business takes time, but we're committed to this business because the long-term trends in Asia and other developing markets for life [are] favorable," he said, listing a growing middle class, high-savings rates and a lack of social safety nets as such trends.
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