Principles of Insurance Westfields Perspective

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Principles of InsuranceWestfields Perspective
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Westfield Group Overview

• Founded in 1848
• Approximately 2,500 employees
• Over 3 billion in admitted assets and 1.5
  billion in revenue (YE 2006)
• Roughly 1/3 of workforce eligible for retirement
  over next five years

2008
1848
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Todays Discussion

• Chapter 5 Types of Insurers and Marketing
  Systems
• Stock Insurers, Mutual Insurers, Lloyds of
  London, Reciprocal Exchanges
• Agents versus Brokers
• Exclusive (captive) Agents, Direct Markets, Mass
  Marketers, Independent Agency System

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Todays Discussion

• Chapter 6 Insurance Company Operations
• Rate-making
• Underwriting
• Claims
• Sales / Marketing
• Risk Control
• Investments, IT, Accounting, Internal Audit,
  Premium Audit, Marketing / Communications, Legal,
  HR

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Types of Insurers

• Stock Insurers
• Mutual Insurers
• Lloyds of London
• Reciprocals
• Captives

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Stock Insurers

• Owned by Stockholders
• Shares are traded on the stock exchange
• Profits benefit stockholders in the form of
  increased stock prices and/or dividends
• Access to capital markets
• Operational flexibility

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Mutual Insurers

• Owned by Policyholders
• There is no stock
• Profits result in reduced upfront rates or a
  dividend in the form of money back from the
  policy
• Changes in Mutual Companies mergers,
  demutualization, mutual holding companies

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Other Types of Insurers

• Lloyds of London
• Members that provide insurance
• Reciprocals
• Unincorporated
• Provide insurance to members only
• Captives
• Only sell insurance for the parent company
• Westfield Insurance

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Marketing Systems

• Direct Writers
• Mass Marketers (Direct Response)
• Exclusive Agency System (Captives)
• Independent Agency System

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Independent Agency System

• Alan Hoffmann
• Hoffmann Associates
• Insurance Services, Inc.
• Westerville, Ohio

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• Break

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Insurance Company Operations

• Underwriting
• Claims
• Surety
• Reinsurance

• Sales / Marketing
• Rate-Making
• Investments

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What is Underwriting?

• Essential to the production side of the insurance
  business
• Goal To charge adequate premium to fund for
  expected future losses based on the exposures
  present
• Underwriters play 3 key roles
• Manager
• Decision-maker
• Sales representative

• Opportunities Challenges
• Skill Set

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Claims

• Westfield/Graduate Development Program
• --work experience
• DEC (Desire, Empathy, Compassion)
• Types of claims
• --personal vs. commercial
• --property vs. casualty
• Responsibilities/Skills
• Claim Handling Process
• Future w/ Westfield

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What is Surety Bonding?

• History
• extends back to ancient times.

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Three Party Contract
OWNER
CONTRACTOR
SURETY (Guarantor)
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Contract Surety Guaranty

• Insurance company backed
• Credit Risk Analysis
• Contractor Surety Bond
• Qualified
• Will complete the project
• No unpaid bills
• Cost Fee typically 1

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Who uses Bonds?

• Federal, State and Local Government.
• Private commercial or industry
• Banks
• 
  

AIS Limited, Indianapolis International Airport
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THREE CS OF SURETY
Contractor Prequalification

• Character
• Capital
• Capacity

Is this a good account?
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SuretyA Diverse Career Choice

• Your role
• Interact with Professionals and decision makers
• Youre a valuable source of surety credit
• Analyst and consultant providing valuable
  solutions on a daily basis.

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Surety Training Program

• One year training program Westfield Center, OH
• We do not throw you to the wolves!
• NO hard sell
• NO cold calling
• Learn Engage
• A career at Westfield Surety
• just might be perfect for you!
• Check out SIO.org (See Surety Card)
• westfieldgrp.com

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Other Operational Areas

• Reinsurance
• Sales / Marketing
• Rate-Making
• Investments
• Combined ratio LR LAE Underwriting Expense
• Operating ratio LR LAE UE Investment Income

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Graduate Development Program

• Why Westfield GDP?
• Expectations
• Experiences
• Class Room Training
• Team Building
• Networking
• Hands on Learning
• Going Forward

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How Can I Learn More?

• Ben Van Nostran
• New Hire Development Manager
• 1-800-243-0210 x2284
• benvannostran_at_westfieldgrp.com