Commercial Insurance Underwriting University of Illinois Urbana – Champaign Finance 230

Commercial Insurance Underwriting University of Illinois Finance Who are We? Mike Myers, CPCU, ARM Regional Underwriting Manager Sue Myers, CPCU, ARM, AIC Commercial Lines Underwriter

Commercial Insurance Underwriting University of Illinois Finance Insurance Companies Founded in 1911 Issued the country’s first Worker’s Compensation policy Member of the Liberty Mutual Group − 95 on the Fortune 500 List − $23.5 Billion Revenue − Over 40,000 employees − 6th largest property/casualty company in the United States

Commercial Insurance Underwriting University of Illinois Finance Insurance Group Founded in 1917 $1.2 billion in revenues 20 th largest commercial insurance writer and 57 th largest Property / Casualty company in the United States 2,200 employees

Commercial Insurance Underwriting University of Illinois Finance Overview Types of Insurance Commercial Insurance Different Markets in Commercial Insurance Underwriting

Commercial Insurance Underwriting University of Illinois Finance Different Types of Insurance Personal Insurance Health Insurance Life Insurance Commercial Insurance International Insurance Reinsurance Specialty Insurance

Commercial Insurance Underwriting University of Illinois Finance Supports Injured People Who Cannot Work Pays Bills/Expenses of a Business Closed By a Fire Protects Families from Unexpected Loss of Income Protects a Person’s Assets Help’s People Recover From Disasters Why Insurance Is Awesome

Commercial Insurance Underwriting University of Illinois Finance Commercial Insurance Insurance for Businesses

Commercial Insurance Underwriting University of Illinois Finance Courtesy of What Risks Do Businesses Have? Workers Autos Property Liability

Commercial Insurance Underwriting University of Illinois Finance Workers Compensation Provides no-fault benefits to workers injured on the job Types of benefits payable − Medical − Disability − Rehabilitation − Death

Commercial Insurance Underwriting University of Illinois Finance Workers Compensation Hospital – Veterinarians – Grocery Stores – Television Network Sports – Insurance Companies– What are some of the sources of Workers Compensation claims?

Commercial Insurance Underwriting University of Illinois Finance Workers Compensation Courtesy of

Commercial Insurance Underwriting University of Illinois Finance Auto Protects the owner against losses arising out of the use of an automobile in business. Types of coverage include: − Business Auto − Garage − Trucking

Commercial Insurance Underwriting University of Illinois Finance Auto

Commercial Insurance Underwriting University of Illinois Finance Auto

Commercial Insurance Underwriting University of Illinois Finance Property Protects against the perils like: − Fire − Theft − Vandalism − Wind Covers: − Buildings − Contents / Stock − Business Income

Commercial Insurance Underwriting University of Illinois Finance Property California Wildfires 10/23/07 Courtesy of

Commercial Insurance Underwriting University of Illinois Finance Property California Wildfires 10/24/07 Courtesy of

Commercial Insurance Underwriting University of Illinois Finance Liability Protects the owner of a business for suits or claims for negligence of: − Premises − Products Produced − Services Provided

Commercial Insurance Underwriting University of Illinois Finance Liability New Massive China Toy Recall Msnbc Headline 8/14/2007 Courtesy of Chip Somodeville / Getty Images

Commercial Insurance Underwriting University of Illinois Finance Commercial Insurance Insuring Businesses: − Small Market − Middle Market − National Market Size Complexity of Risk and Coverage Handling Expenses

Commercial Insurance Underwriting University of Illinois Finance Functions of an Insurance Product: Claims – Handles Claims and Pays the Losses Loss Control – Identifies and Controls Risk Actuarial – Predicts and Estimates Risk Underwriting – Accepts and Prices Risk

Commercial Insurance Underwriting University of Illinois Finance Underwriting - Simply Stated Analyzes a customer’s business risk Decides whether to insure the risk Decides coverages to offer Decide appropriate structure Forecasts costs / Price transferred risk

Commercial Insurance Underwriting University of Illinois Finance Underwriting Skill Set English & Speech Finance & Accounting Statistics Law Common Sense

Commercial Insurance Underwriting University of Illinois Finance It’s All About Risk Can have millions of dollars in limits on every account, even the smallest Take on additional exposure with each added coverage Even the best accounts could have a million dollar claim (or Larger!)

Commercial Insurance Underwriting University of Illinois Finance Any Questions?

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