Chubb Calls Client Focus Key To Victory

A combination of financial strength, consistency of service capabilities on a global scale, as well as expertise in underwriting, loss control, claims and certain business niches is why Chubb was cited as “Best Carrier Overall” in the first Risk Manager Choice Awards survey, an executive for the company said.

Working in partnership with National Underwriter, Flasp?hler Research Group completed surveys with 411 risk managers, asking them to pick the best property and casualty insurance carrier overall among those with which they are familiar, with over 50 choices offered.

Among all respondents, 46.1 percent overall cited Chubb–including 49.0 percent of those placing more than $5 million in commercial premiums, and 45.9 percent of those placing below $5 million–making the carrier tops in all three categories.

On individual lines of business, Chubb topped the Risk Manager Choice list among all buyers of directors and officers insurance and employment practices liability coverage.

In addition, in a separate section of the survey, Warren, N.J.-based Chubb finished second or third in all seven “evaluation and selection factors” buyers consider important when placing coverage–underwriting capabilities, financial value, financial security, client orientation, expertise and market knowledge, timely service and claims-handling.

Scott Gunter, chief underwriting officer of Chubb Commercial Insurance in Whitehouse Station, N.J., said the organization's financial strength and strong ratings allows the carrier to provide service capabilities consistently on a global scale.

Chubb's financial strength is critically important to get access to capital, he added, as well as to remaining in markets–a crucial point of distinction for a carrier like Chubb, according to Mr. Gunter, because the company does not target all segments.

Instead, Chubb employs a niche strategy, picking areas where it believes it can bring the best value, he noted. “We're not in and out of markets,” he said, adding that when Chubb enters a segment, “we make sure it's something we want to do. That consistency is very important to us and our clients.”

Consistency allows Chubb to develop worldwide expertise in the segments in which it does business, said Mr. Gunter–who cited life sciences as an example. He noted that Chubb is able to handle the exposures associated with clinical trials on a global basis thanks to its network of worldwide offices, and thus properly underwrite and service risks across borders.

Chubb's global presence also allows the company to respond if an insured is expanding into a new foreign location–such as China, Mr. Gunter said.

He explained that customers appreciate the fact they can deal with Chubb people around the globe, adding that most of Chubb's teams are well-tenured, having been with the company for a long period and growing though the ranks. “Most of these teams are homegrown,” he said.

Expertise does not just relate to overall knowledge in a given niche or market, but extends into underwriting, loss control and claims, according to Mr. Gunter.

Risk managers rated Chubb second overall in underwriting based on criteria such as “underwriters with authority to make decisions,” and underwriters that are consistent in their underwriting decisions.

Mr. Gunter said success in these underwriting areas stems from when Chubb first gets the risk from a broker with whom Chubb has a “capabilities meeting”–during which customer expectations and service requirements are discussed.

He noted that many insureds have operations outside of the United States, and Chubb discusses with the broker the buyer's needs in all of its global markets.

When dealing with risk managers personally, Mr. Gunter said buyers interact with some of Chubb's most seasoned underwriters, who are folded into a team along with loss control experts to handle a customer's particular segment of business.

On the claims side, risk managers also deal with senior Chubb personnel and get to know who will be in charge of their claims, Mr. Gunter said. He noted that Chubb sets up quarterly meetings with insureds to discuss claims and loss control on a given account.

Chubb, he said, is involved throughout the claims process rather than after the fact. If Chubb sees claims activity in a certain area, loss control personnel will discuss that with the insured to prevent smaller problems from becoming larger ones, he explained.

Mr. Gunter stressed the importance of claims to both Chubb and risk managers. “That's what the customer is buying–claims-handling,” he said.

In general, Mr. Gunter expressed gratitude toward risk managers for recognizing Chubb. He said the award helps validate the company's strategy.

Part of that validation, he noted, is keeping accounts, along with praise from brokers. But he cited the importance of positive feedback from Chubb customers themselves, most of whom are sophisticated buyers. “I take great pride in that,” Mr. Gunter said, adding that the Risk Manager Choice Award represents “a tremendous response from our insureds.”