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MARKETING
Hanover's push in personal lines
Assisted living: part of a suite of new products & enhancements
By Phil Zinkewicz
Earlier this year, the Worcester, Massachusetts-based Hanover Insurance Group kicked off its new “think Hanover” program, a series of personal lines products and service enhancements being offered through the company’s independent agent partners.
The Hanover Insurance Group is the holding company for a group of insurers that includes The Hanover Insurance Co., also based in Worcester; Citizens Insurance Co., headquartered in Howell, Michigan; and their affiliates. Taken as a group, The Hanover ranks among the top 30 property and casualty insurance companies in the United States, with revenues of approximately $2.6 billion, $1.5 billion of which is in personal lines.
In July 2009 The Hanover announced the first wave of new upgrades including the availability of a new product offering that extends homeowners coverage to provide insurance for family members in assisted living facilities. Jack Roche, vice president of field operations, marketing and distribution for The Hanover, and Mark Galante, vice president personal lines marketing and distribution, say that this coverage is becoming more and more important as the population of people residing in such facilities continues to grow—today, far exceeding 1 million residents throughout more than 36,000 facilities nationwide.
Assisted living care coverage can be added to new and existing Connections Home policies, a smart option for customers who have spouses, parents or children living in assisted care facilities. Characteristics of the product include:
• Coverage available for more than one relative, with a separate charge for each
• Affordable premium for each named person
• Personal property protection up to $10,000 that includes hearing aids, eyeglasses, false teeth, dentures, contact lenses, media alert devices, walking aids and wheelchairs that may be lost or damaged
• Personal liability coverage limits of $100,000 or $300,000
• Additional living expense coverage of $500 per month up to $6,000 if the facility operation is suspended or not fit to live in as a result of a covered loss
“ ‘Think Hanover’ is the tangible embodiment of our company’s unwavering commitment to being the best total account writer with an unrivaled sales and service experience for its partner agents,” says Galante. “While our assisted living coverage is not just for seniors, we expect that the number of people who need assistance in daily living will grow significantly as the Baby Boomer generation ages. This unique, affordable coverage is just another tool The Hanover is offering to help our agent partners differentiate themselves in the marketplace by offering agents’ customers valuable protection that they may have otherwise gone without.”
Adds Roche: “The investments and enhancements we are making in our personal lines business this year are indications of our excellent financial position and our steadfast commitment to being the best partner for independent agents.”
Roche and Galante say that, for The Hanover, the beginning of its current journey was in 2003 following the appointment of Fred Eppinger as chief executive officer. “The Hanover began an important journey to create a world class company, one that incorporates the qualities that agents most appreciate from the best national and regional carriers,” says Roche. “That meant building a company with the people, products and services on a par with the best national companies and the local knowledge and responsiveness of the best regional companies.”
Says Galante: “The strategy has generated strong results and The Hanover has improved on every dimension. The company has positive earnings momentum and strengthened its balance sheet, growing significantly each year.”
Having recently announced a western expansion, the company is now a national player with a regional approach, offering innovative products for both commercial and personal lines, and a more limited number of agency partnerships than any other carrier to help its partners be more distinctive. Its operating model is focused on rapid response at point-of-sale, says Roche.
He adds that, over the last five years, the company has invested more than $250 million in products, talent and operating model enhancements that make it easier for agent partners to do business with The Hanover. Since 2005, The Hanover has launched more than 30 products, including many specialty and niche products that create new opportunities for growth, while also improving agent-facing technology and services, making it faster and more efficient for agents to meet the needs of their customers.
“The results have been incredible,” says Roche. “The company’s commercial lines business grew net written premium by 11%, while improving ex-cat loss margins, and developing a growing position in specialty, generating over $500 million in direct written premium in its marine, bond, niche and other specialty business.”
The Hanover’s personal lines business has held steady at a time when others in the industry are reporting losses, also bringing in $257 million in new business direct written premium last year.
Says Galante: “A $1.5 billion business and ‘total account writer’ for its agent partners, The Hanover’s personal lines business offers solutions for home, auto, umbrella liability, and toys. And, in addition to an integrated suite of competitive products, the company offers the sophistication and breadth of coverage to support the complex and changing needs through the life cycle of a client.”
Adds Roche: “Today, The Hanover’s personal lines is growing its account business and customer service center business with partner agents, and momentum is building.” Additionally, the company’s personal lines business, which distributes its products through approximately 2,400 independent agents in 19 states, grew premium significantly in its growth states.
Roche says that, today, the best independent agents in the business are re-evaluating their relationships with carriers and looking to build deep, mutually beneficial relationships with the few “go to” companies they know they can rely on to help them create distinction, add value and be successful over the long term.
“The Hanover is improving its personal lines business even further,” says Roche. “The effort is more important than ever. Disruption in the industry has created an unprecedented opportunity for The Hanover, as many independent agents are under pressure to grow and sustain revenue in a low-growth period. Faced with carriers that have been hunkering down and scaling back, or even spending millions to go direct and compete against them, they are looking for financially strong carrier partners.”
Galante describes the three essential components that make up the heart of “think Hanover:”
• Hanover Household is the company’s “total account” product suite, which now helps agents offer exceptional value and fulfill more needs for their clients. It provides more ways to help attract accounts, round them and retain them. It includes new hooks like pet injury protection, assisted living care coverage, equipment breakdown and more. The company also makes it easy to write personal umbrella and valuables and even includes distinctive account benefits that it calls Total Household Rewards.
• Front Line Excellence is the company’s distinctive combination of speed, simplicity and reliability that enables partner agents to optimize their own efficiency and improve economics. Every one of The Hanover’s “Flex Solutions” from its customer service center offerings to its enhanced quoting platform and next generation quote proposal is designed to help agent partners deliver value, while increasing their profits.
• Partner Solutions are the company’s distinctive tools and programs designed to help partner agents make more money by attracting, rounding and retaining more accounts. These include a group of evolving “Main Street” capabilities, such as “Sweet Spot” cross-sell program, and “Win Back” campaigns, or book consolidation solutions. The company is building many ways to help its partners grow in any economy.
“This is just the beginning,” says Roche. “We believe and are proving we can win by investing in independent agents.”
For more information:
The Hanover Insurance Group
Web site: www.hanover.com |
