1. 2006 National Homeowners Insurance StudySM
Presented to:
St. Paul Travelers
December 6, 2006

2. Today’s Program Agenda Overview and Key Findings
Overall Satisfaction Performance
Satisfaction vs. Key Competitors
Detailed Findings
Interaction
Price
Policy Offerings
Billing and Payment
Claims
Closing Remarks and Recommendations

3. The Customer Experience Model
The 5 P’s of the
customer experience
People
Presentation
Price
Product
Process
Gary
First we must understand that each company creates a unique customer experience through a set of five inter-related aspects of their business systems (business and operational models)

4. Index Framework

5. Customer Satisfaction Varies by Industry
Experiences from one
Industry influence
customer expectations
for other industries
Gary

6. Key Findings

7. Key Findings
Travelers ranks in the lower tier of customer satisfaction with an overall CSI score of 739, twenty two points below the industry average.
Within its competitive set, Travelers is comparable to Liberty Mutual. However, it trails Erie, The Hartford, and Safeco by a significant margin.
Travelers is among a handful of insurers who enjoy an improved performance. In 2006, it has nearly halved its gap with the industry average.
Relative performance improved across the board especially for the Policy Offerings, Billing/Payment, and Price factors.
Gains made in Interaction (Agent involvement ) in the 2006 Auto Study also registered for Home.
Compared to its key competitors, Travelers has the biggest opportunity for improvement in two areas that have an impact on the customer experience:
Interaction – Customers desire better service from agents and better response time
Policy Offerings – Customers desire a wider variety of coverage options and more competitive discounts
Price, Billing, & Payment as well as Claims all have components needing addressing as well

8. Overall Satisfaction Performance

9. Overall Customer Satisfaction Index (CSI) Ranking
Difference
from 2005
(22) 15
(19)
(17) 9 17
(4) 7
(10)
(11)
(15)
(3)
(6) 12
Overall Customer Satisfaction Index Score

10. Overall Customer Satisfaction Index (CSI) Ranking
Excluding Gulf CAT States

11. Customer Satisfaction Index Models
89%
11%

12. Customer Satisfaction Index Model - Combined

13. Overall CSI Index Trend
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

14. Satisfaction Performance vs. Key Competitors

15. St. Paul Travelers vs. Industry
Gap Point Analysis

16. St. Paul Travelers vs. State Farm
Gap Point Analysis

17. St. Paul Travelers vs. Safeco
Gap Point Analysis

18. St. Paul Travelers vs. The Hartford
Gap Point Analysis

19. St. Paul Travelers vs. Allstate
Gap Point Analysis

20. St. Paul Travelers vs. Liberty Mutual
Gap Point Analysis

21. St. Paul Travelers vs. Encompass
Gap Point Analysis

22. Interaction

23. Interaction Index Trend
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

24. Customer Satisfaction Index Model - Combined

25. Local Agent and/or Staff Index
% Utilization
80%
44%
85%
84%
86%
72%
78%
76%
75%
58%
64%
57%
38%
71%
70%
60%
21%
‡ USAA is not ranked because it is not generally open for the public to purchase.
*Caution small sample size

26. Call Center Service Representative Index
% Utilization
71%
58%
49%
26%
27%
55%
53%
34%
31%
39%
47%
54%
20%
36%
29%
32%
88%
17%
‡ USAA is not ranked because it is not generally open for the public to purchase.
*Caution small sample size

27. Method of Contact and Satisfaction with Overall Interaction (Agent Distribution)
% Using Interaction Method

28. Method of Contact and Satisfaction with Overall Interaction (Direct Distribution)
% Using Interaction Method

29. Customer Satisfaction by Agent Type

30. Problem Mitigation KPI
Problem Mitigation KPI** - Nature of Most Recent Non-Claim Related Interaction (Multiple Mention)
Breakpoint
% of Total Customers
**Key Performance Indicator

31. Reason for Contacting With a Problem - Industry
Problems
Reason for Most Recent Contact

32. % of Customers Contacting Insurer
Issue Resolution KPI** Performance - Number of Contacts to Resolve Issue
Breakpoint
% of Customers Contacting Insurer
**Key Performance Indicator
# of Contacts Made to Insurer

33. Issue Resolution KPI** Performance- Time to Resolve
Breakpoint
% of Customers Contacting Insurer
**Key Performance Indicator
# of Days to Resolve Issue

34. Issue Resolution KPI** Performance – Call Back Fulfillment
Breakpoint
% Contacting Insurer
**Key Performance Indicator

35. Issue Resolution KPI** Performance – Policy Review
Breakpoint
% of Total Respondents
Index Score
**Key Performance Indicator

36. Overall Interaction Index
Recency of Interaction KPI** Performance
Breakpoint
N/A
% Contacting Insurer
Overall Interaction Index
Timeframe of Last Contact
**Key Performance Indicator

37. Price

38. Price Index Trend
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

39. Price Sensitivity by Insurer
Note: Values may not total 100% due to rounding.

40. Influence of Price on Purchase Decision
Note: Values may not total 100% due to rounding.

41. Premium Change Notification and Discussion KPI** Performance
Breakpoint
% of Total Customers
**Key Performance Indicator

42. Notification of Rate Increase
Note: Values may not total 100% due to rounding.

43. Policy Offerings

44. Policy Offerings Index Trend
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

45. Policy Offerings Attributes
Importance: % 19% % % % %
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

46. Discounts Received 828 778 764 771 756 613 Policy Offerings
Index Score
828
778
764
771
756
613

47. Bundling Home and Auto Insurance KPI** Performance
Breakpoint
% of Total Customers
**Key Performance Indicator

48. Bundling Home and Auto Insurance By Insurer

49. Recency of Replacement Cost Value Calculation KPI** Performance
Breakpoint
% of Total Customers
**Key Performance Indicator

50. Recency of RCV Calculation - By Insurer

51. Reporting Structural Changes to the Insurer KPI** Performance
Breakpoint
% of Total Customers
Index Scores
Yes, made structural change to home
% Received a PIR
64%
79%
59%
**Key Performance Indicator

52. Reporting Structural Changes – By Insurer

53. Limits to Coverage (Self Reported)
% of Total Customers
Index Scores
When Coverage Was Last Calculated
% Received a PIR
69%
77%

54. Coverage Shortfall (Self Reported) - By Insurer

55. Billing and Payment

56. Billing and Payment Index Trend
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

57. Billing and Payment Attributes
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

58. Customer Satisfaction with Billing Contacts - Industry
Index Score
% Of Total
Customers
87% 9% 2% 1%

59. Incidence of Billing Contacts

60. Customer Satisfaction with the Method of Payment
% Using Payment Method
Values may not total 100% due to rounding.

61. Claims

62. 2006 Claims Index

63. Claims Index Trend - Industry
Key Competitors: Erie, Hartford, Liberty Mutual, Safeco
Captives: Allstate, American Family, Farmers, Nationwide, State Farm

64. Most Recent Claim Filed With St. Paul Travelers
Within Last 12 Months
13-36 Months Ago
752
762
Industry
Overall CSI
Index Scores
More Than 36 Months Ago
785
Never
755

65. Type of Most Recent Claim (Multiple Mention)
% Claimants

66. Primary Claims Contact KPI** Performance
Breakpoint
% of Claimants
Overall Claims Index
**Key Performance Indicator
*Caution small sample size.

67. Claims Response Time KPI** Performance
Breakpoint
% of Claimants
Overall Claims Index
**Key Performance Indicator

68. Claims Response Time – By Insurer
**Key Performance Indicator
*Caution small sample size
Note: Values may not total 100% due to rounding.

69. Claim Incident Required a Call Back KPI** Performance
Breakpoint
% of Claimants
Overall Claims Index
**Key Performance Indicator

70. Claim Incident Required Call Back – By Insurer

71. Damage Inspection KPI** Performance
Breakpoint
% of Claimants
Overall Claims Index
**Key Performance Indicator

72. Damage Inspection – By Insurer
**Key Performance Indicator
Benchmark carriers limited due to small sample.

73. Settlement Time KPI** Performance
Breakpoint
% of Claimants
Index Score
**Key Performance Indicator
*Caution small sample size.

74. Settlement Explanation KPI** Performance
Breakpoint
% of Claimants
Overall Claims Index
**Key Performance Indicator

75. Shopping

76. Products/Services Desired – Home Industry Overall

77. Leading Reasons for Selecting Insurer

78. Recommendations

79. Recommendations (for Task Force to consider)
Interaction
Empower agents to deliver world class service to Travelers customers
Encourage agents and service representatives to resolve customer problems and concerns the same day registered and on the same call (One and Done)
Encourage greater participation of agents in the claims process
Encourage agents to perform annual policy reviews, RCV and coverage shortfall
Notify customers of premium increases prior to bill and discuss coverage options
Policy Offerings
Bundle home insurance with auto policy and other products
Increase the variety of coverage options offered
Offer more and increase awareness of policy discounts (e.g. loyalty/renewal discounts)

80. Recommendations (for Task Force to consider)
Billing & Payment
Minimize billing confusion by educating customers on the process at the time of the enrollment
Get billing clear and concise to eliminate call and confusing customers
Work to improve the accuracy and clarity of billing statements
Encourage on-line or automatic payments
Claim
Work to contact more claimants the same day as the FNOL and tighten claim cycle-time
For claims interaction, respond to the FNOL within one day and include the agent in the process. Inspect damage within 14 days
For claims settlement, settle claims within three weeks and provide claimants with a detailed settlement explanation