Risk Manager Choice Awards Cite Best Carriers

The Chubb Group of Insurance Companies and FM Global were the big winners in the first "Risk Manager Choice Awards," based on a survey of 411 corporate insurance buyers run by the Flasp?hler Research Group, in partnership with National Underwriter.

When asked which commercial insurance providers they believe are "best overall," 46.1 percent of the entire survey base named Chubb--the most among 50 choices offered. Chubb was cited by 49.0 percent of those placing more than $5 million in commercial premiums, as well as by 45.9 percent of those placing below $5 million--topping both categories.

Zurich (41.3 percent) and The Travelers (41.1 percent) finished second and third overall, respectively. However, Travelers (43.5 percent) topped Zurich (40.1 percent) among buyers placing less than $5 million in premiums, although Travelers (39.2 percent) finished below both Zurich (44.4 percent) and ACE USA (43.1 percent) among bigger buyers. (Respondents could cite more than one carrier.)

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. (For more about Chubb's to meeting buyer expectations, go to http://www.property-casualty.com/Issues/2009/October-19-2009/Pages/Chubb-Calls-Client-Focus-Key-To-Victory.aspx.)

FM Global--a specialty carrier offering fewer lines of business--finished sixth on the "best overall" ratings, cited by 26.3 percent of respondents. However, what FM Global does, it does very well in the eyes of risk managers familiar with the insurer.

Indeed, in rating carriers on individual lines of business, FM Global came out on top as the Risk Manager Choice for buyers of all sizes on commercial property and business interruption coverage--the company's two prime areas of business.

FM Global is well-known for its aggressive risk management and safety programs, as well as its Research Campus, where a team of engineers work with clients to help prevent losses from happening in the first place.

In addition, in a separate section of the survey, FM Global was most highly rated 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. (For a further discussion of FM Global's approach to client service, go tohttp://www.property-casualty.com/Issues/2009/October-19-2009/Pages/Research-Lab-Helps-FM-Global-Lead-Pack.aspx.)

FM Global, based in Johnston, R.I., scored over "7," and frequently was rated close to an "8" for all of the evaluation categories--with 7 or higher "seen as truly excellent," according to Rick Flasp?hler, president of the Kansas City, Mo.-based research firm.

Chubb finished second or third in all seven evaluation and selection criteria, while Travelers made the top-five in all categories.

For each category, respondents were asked to rate--on a scale of one-to-nine, with nine being the best--those carriers with which they were familiar on the factors they considered important. Therefore, "there is no 'noise' in this data that is present in typical surveys, where respondents rate every carrier on every factor," explained Mr. Flaspohler.

(To see the top-five in each of the evaluation and selection categories, go to http://www.property-casualty.com/Issues/2009/October-19-2009/Pages/Chubb-FM-Global-Come-Up-As-Biggest-Winners-In-Risk-Manager-Choice-Awards.aspx.)

In other results:

o Liberty Mutual was rated best among all buyers of workers' compensation insurance.

o Travelers was top-ranked among all risk managers buying commercial auto and surety bonds, and was tied with Chartis (the new brand for the commercial insurance companies of AIG) on general liability coverage.

o Chartis also came out on top among all buyers of errors and omissions as well as commercial umbrella liability coverage.

o Travelers ranked highest among buyers spending less than $5 million in premiums annually on marine and terrorism insurance, with Lloyd's topping the list overall, as well as among the biggest buyers, for both lines of business.

o Zurich rated number-one among risk managers on construction insurance overall, although Chartis topped that line among the bigger buyers.

o Lloyd's was cited as the top market among all buyers of medical malpractice coverage.

The Web-based survey, conducted by the Flasp?hler Research Group between July 20 and Aug. 10, drew an experienced response base, with nearly half of the risk managers handling insurance purchases for a decade or more, and over three-quarters executing that responsibility for more than five years.