Chubb's wealthy insurance line for personal insurance may have new competition, but chairman and CEO Evan Greenberg and a CEO say those rivals have not really done that.
"From my point of view we see no change in any consequences in the competitive environment of the past year, you get new entrants coming in and they are especially in the category of the prosperous mass and not the real wealthy value," Greenberg said during the call in Q4 2018 from Chubb on February 6. "They have no coverage and services and opportunities to really manage the market."
Paul Krump, executive vice president at Chubb and President, Commercial Insurance and Personal Insurance in North America, said revenue in his wealthy personal lines business was almost nothing.
"Our retention with the homeowners [high net worth market] is 96 percent, "said Krump during the conversation." We're losing some customers through death … and maybe we can count the number of accounts that we've lost with two hands. [due to] newcomers in the last months. "
Long time competitors in the personal lines wealthy space are American International Group. W.R. Berkley Corp. is one of the newcomers and introduced its renowned personal line brand Berkley One at the end of 2016. In January, Berkley One expanded to more states and launched its coverage against flooding in new markets. In April, a number of former AIG directors made their debut in the new wealthy insurance company Vault in Florida, of which the largest owner is Allied World.
Chubb itself expanded its wealthy activities in other countries (Canada) and extended and modernized service options. Greenberg said that the company has continued its wealthy operations as a matter of course.
"We're not arrogant about it, it's just like everything else in the world." Service standards need to be constantly improved. "" Coverage needs to be constantly improved. "You need to be able to introduce more choice to customers and you need to be able to do this in a digital world. do, with customer service and experience that represents it, "said Greenberg.
Greenberg added: "We will keep repeating and accelerating our capabilities in all these areas, because we think there is and will remain a big opportunity in this market."
This article was originally published by CarrierManagement.com, the publication for the P / C insurance C-suite.
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