1. Commercial Insurance Underwriting University of Illinois Urbana – Champaign Finance 230

2. Commercial Insurance Underwriting University of Illinois Finance 230 2 Who are We? Mike Myers, CPCU, ARM Regional Underwriting Manager Sue Myers, CPCU, ARM, AIC Commercial Lines Underwriter

3. Commercial Insurance Underwriting University of Illinois Finance 230 3 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

4. Commercial Insurance Underwriting University of Illinois Finance 230 4 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

5. Commercial Insurance Underwriting University of Illinois Finance 230 5 Overview Types of Insurance Commercial Insurance Different Markets in Commercial Insurance Underwriting

6. Commercial Insurance Underwriting University of Illinois Finance 230 6 Different Types of Insurance Personal Insurance Health Insurance Life Insurance Commercial Insurance International Insurance Reinsurance Specialty Insurance

7. Commercial Insurance Underwriting University of Illinois Finance 230 7 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

8. Commercial Insurance Underwriting University of Illinois Finance 230 8 Commercial Insurance Insurance for Businesses

9. Commercial Insurance Underwriting University of Illinois Finance 230 9 Courtesy of www.bullesdoxygene.com What Risks Do Businesses Have? Workers Autos Property Liability

10. Commercial Insurance Underwriting University of Illinois Finance 230 10 Workers Compensation Provides no-fault benefits to workers injured on the job Types of benefits payable − Medical − Disability − Rehabilitation − Death

11. Commercial Insurance Underwriting University of Illinois Finance 230 11 Workers Compensation Hospital – Veterinarians – Grocery Stores – Television Network Sports – Insurance Companies– What are some of the sources of Workers Compensation claims?

12. Commercial Insurance Underwriting University of Illinois Finance 230 12 Workers Compensation Courtesy of www.craneaccidents.com

13. Commercial Insurance Underwriting University of Illinois Finance 230 13 Auto Protects the owner against losses arising out of the use of an automobile in business. Types of coverage include: − Business Auto − Garage − Trucking

14. Commercial Insurance Underwriting University of Illinois Finance 230 14 Auto

15. Commercial Insurance Underwriting University of Illinois Finance 230 15 Auto

16. Commercial Insurance Underwriting University of Illinois Finance 230 16 Property Protects against the perils like: − Fire − Theft − Vandalism − Wind Covers: − Buildings − Contents / Stock − Business Income

17. Commercial Insurance Underwriting University of Illinois Finance 230 17 Property California Wildfires 10/23/07 Courtesy of www.news.yahoo.com/photos/

18. Commercial Insurance Underwriting University of Illinois Finance 230 18 Property California Wildfires 10/24/07 Courtesy of www.news.yahoo.com/photos/

19. Commercial Insurance Underwriting University of Illinois Finance 230 19 Liability Protects the owner of a business for suits or claims for negligence of: − Premises − Products Produced − Services Provided

20. Commercial Insurance Underwriting University of Illinois Finance 230 20 Liability New Massive China Toy Recall Msnbc Headline 8/14/2007 Courtesy of Chip Somodeville / Getty Images

21. Commercial Insurance Underwriting University of Illinois Finance 230 21 Commercial Insurance Insuring Businesses: − Small Market − Middle Market − National Market Size Complexity of Risk and Coverage Handling Expenses

22. Commercial Insurance Underwriting University of Illinois Finance 230 22 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

23. Commercial Insurance Underwriting University of Illinois Finance 230 23 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

24. Commercial Insurance Underwriting University of Illinois Finance 230 24 Underwriting Skill Set English & Speech Finance & Accounting Statistics Law Common Sense

25. Commercial Insurance Underwriting University of Illinois Finance 230 25 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!)

26. Commercial Insurance Underwriting University of Illinois Finance 230 26 Any Questions?

27. Thank you University of Illinois Urbana – Champaign Finance 230