Edition 1, 2003
Contents
Advisories, Fact Sheets Help Mitigate Losses
Keeping Up With the Times With Family ProtectionSM
Coming Soon...CPI Advanced Producer School
Chubb Expands Privately Held Company Market for ForeFront PortfolioSM



























































































































































































































































Have you taken a moment to complete our survey? Click here to go to the survey link.

Message From Chubb President and CEO
John Finnegan

Chubb has always relied on the strength of the independent agency system. You are the face of Chubb for our customers, and we depend on you to:
  • Articulate value, namely, that Chubb's superior service, broad, custom-tailored insurance products and financial stability make Chubb the carrier of choice.
  • Clearly understand our appetite and service capabilities and bring us the customers who appreciate the added value we deliver in insurance products and service.
  • Answer questions -- the better you can explain the differences among choices available, the better service you provide to your customer.
We believe that Chubb's future success is closely tied to the success of independent producers like you, and that belief is top-of-mind in everything we do. We're therefore pleased to introduce the MarketBuilder e-newsletter, a periodic communication that aims to bring you "News you can use to build your business."

MarketBuilder demonstrates our strong commitment to you and to keeping you in the loop. To start, we'll provide articles on: new and existing Chubb products and services and how they benefit target customers; creative solutions our agency partners and we have applied to customer problems; changing markets and how we're responding; and programs to help you boost sales, streamline operations or enhance your employees' expertise. Occasionally, we'll also air an issue facing our industry -- and possibly ask your help.

While we hope MarketBuilder will be valuable to you immediately, we anticipate that the newsletter will develop into a stronger tool, based on your feedback. I invite you to let me know how you like the newsletter and what we can do to make it better.

I am grateful for everything you have done for Chubb over the years, and I look forward to sharing a bright and profitable future with you.

Sincerely,
John D. Finnegan

Advisories, Fact Sheets Help Mitigate Losses

For more than 60 years, Chubb Loss Control Services has held tight to its belief that the elimination or reduction of risk is good business for our customers. Among the value-added services offered to producers and customers is information intended to help mitigate risks. Chubb monitors expert and governmental resources to develop advisories and fact sheets packed with helpful information.

In the past few months, Loss Control Services issued three advisories: In addition, Loss Control Services released two fact sheets:
  • Take a Load off Your Mind Before Winter Arrives includes tips for minimizing the chances of roof collapses and suggests steps to take in late summer and early autumn to prepare for winter snow. Tips include reviewing the physical makeup of buildings, analyzing the amount of load that a roof is designed to handle and fixing any leaks or insulation holes. The fact sheet also suggests how to prepare for an imminent storm and ways to recover after a storm has occurred.
  • Mitigating Transit Losses tackles the issue of cargo theft -- a problem costing companies worldwide $30 billion a year. Some types of goods are especially hard-hit, such as high-tech equipment, name-brand apparel and food and wine. This informative sheet offers tips for reducing a company's exposure to theft of property in transit. Topics covered include transportation carrier selection and management, packaging and transit strategies.
Chubb Loss Control Services will continue to issue advisories and fact sheets for you to share with your Chubb clients, helping them to mitigate losses. These communications are available in PDF format for easy delivery either electronically or via hard copy.

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Keeping Up With the Times With Family ProtectionSM

Since MasterpieceŽ Family ProtectionSM was introduced in June 2001, nearly 15,000 customers worldwide have purchased it. Family Protection continues a trend of more broadly assessing your clients' personal risk and seeking ways to minimize financial burdens following traumatic events, such as kidnappings (Kidnap Expense coverage) and identity theft (Identity Fraud coverage).

In early 2000, Chubb uncovered a potentially unmet demand for coverage related to crimes of stalking/harassment, abduction and home invasion. A look at the U.S. Department of Justice's annual crime report suggested a sufficient frequency of these crimes for Chubb to investigate further. This became the genesis for Family Protection. A Chubb-commissioned Internet survey revealed that 66% of respondents were at least "somewhat likely" to purchase a family protection product, and 36% were willing to pay $75 or more for it. Results of a market study by Impulse Research validated our early assumptions:
  • 78% believe these crimes could seriously impact their finances.

  • 62% worry about child abduction.

  • 58% are concerned about carjacking.

  • 40% don't feel safe when staying in a hotel room.

The launch states (CO, CT, IL and MA) were determined largely on the basis of favorable regulatory climates. All four went live on June 18, 2001. Early production picked up due to significant media coverage and a direct mail campaign to Chubb homeowner policyholders in all four states. Direct mail response has been robust and contributes significantly to first-year production in each state. In each successive state where Family Protection is introduced, we continue to mail directly to existing homeowner policyholders over the course of one renewal cycle.

Today the product is available in 11 U.S. states and the UK with more states approved and pending implementation. Additional states will follow throughout 2004. Variations in pricing and coverage account for marketplace and regulatory conditions.

Family Protection is currently available in the following U.S. states:

State
CA
CO
CT
FL
GA
IL
MA
MI
NJ
OH
PA		 Implementation
Date
9/15/03
6/18/01
6/18/01
6/26/03
5/19/03
6/18/01
6/18/01
8/11/03
10/24/02
8/11/03
6/2/03		 Annual
Premium
$135
$70
$80
$85
$95
$80
$80
$95
$90
$95
$110
Notes

AD&D not included

Carjacking not included




AD&D not included

Coverage Highlights:

  • Family Protection is highly portable, with a nearly worldwide territory.

  • Covered home invasions include intrusions into a customer's private hotel room, dormitory room, motor home, or cabin on an ocean liner.

  • Carjacking covers occurrences with rented and furnished vehicles, even overseas.

  • Child abduction coverage extends to children in a customer's care, even those unrelated to an insured.

  • Stalking threat coverage offers temporary relocation coverage, as well as security guard service and residential security improvements for homeowners.

Family Protection is a collection of expense coverage limits, rather than a combined single limit coverage. Following are maximum available coverages per occurrence by peril:
Carjacking $465,000 $215,000 in non-AD&D states
Child abduction $555,000 $305,000 in non-AD&D states
Home invasion $475,000 $225,000 in non-AD&D states
Stalking threat $23,000 $50,000 limit per policy period, all states

For more information visit the Family Protection page on our Web site. Also available (as Acrobat PDF files): The Family Protection Desk Reference for Agents, FAQs, and Customer brochure.

Other links:
Helpful tips
Press release
Pittsburgh Business Times article


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Coming Soon...CPI Advanced Producer School
SignatureSM Acquisition and Account Development

In response to requests for a seminar geared toward experienced producers working on complex SignatureSM accounts, we're pleased to announce the first Advanced Producer School devoted to Signature acquisition and account development skills.

Dates: November 17 - November 20, 2003
Arrival on Sunday evening, November 16, 2003
Location: Chubb
202 Hall's Mill Road
Whitehouse Station, NJ 08889

About the Program
This program is designed for personal lines producers with three to five years of experience and access to larger, more complicated personal insurance accounts. It will provide dynamic opportunities to learn more about risk evaluation, understanding unusual exposures, selling to the affluent, dealing with a risk manager and financial metrics for personal insurance. The event includes spending a day in New York City to learn more about the fine arts marketplace. The program will culminate with lively discussion from a panel of successful personal insurance producers discussing best practices for the Signature customer.

Technical components of the program will be filed for CE credits in each state. The fee for this special Chubb school is $750, which includes room and board. The fee does not include transportation costs.

CPI Advanced Producer School: Application and Brochure. Your marketing specialist or CPI manager can provide additional information.

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Chubb Expands Privately Held Company Market for ForeFront PortfolioSM

Chubb has expanded the account eligibility for ForeFront PortfolioSM to include larger privately held companies. Introduced in 2001, ForeFront Portfolio offers a flexible menu of eight coverages:

  • Directors and Officers Liability
  • Employment Practices Liability
  • Fiduciary Liability
  • Miscellaneous Professional Liability
  • Internet Liability
  • Crime
  • Kidnap/Ransom and Extortion
  • Workplace Violence Expense
The old requirements: Companies with up to $250 million in revenues and fewer than 1,000 employees.

The new requirements: Companies with up to $1 billion in revenues and fewer than 2,500 employees.



In today's business environment, private companies have many of the same exposures as publicly traded companies. Lawsuits from shareholders, investors, creditors and employees, as well as "white collar" crimes, kidnappings and extortion are just some of the risks that can have an impact on a private company's bottom line. Yet many larger privately held companies have outdated insurance policies that are more restrictive than ForeFront Portfolio.

Benefits of ForeFront Portfolio:
  • The policy forms stand out in the marketplace because they are specifically written for privately held companies.
  • The package concept makes cross-selling a natural extension of the services you offer.
  • Chubb continues to be a leader in the private company market.
  • Local Chubb underwriters have authority to approve most accounts that fall within the new eligibility requirements.
  • Chubb underwriters are available to meet with your clients and prospective clients.
Marketing Resources

Needs analysis: This simple guide helps prospective customers determine their need for coverage by pointing out areas where they may face exposure and by highlighting the ForeFront Portfolio coverage that can provide needed protection.

National advertisement.

Marketing brochures and policy forms: A detailed description of ForeFront Portfolio and its coverage sections, as well as policy forms, can be found here.

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For More Information

For more information, contact your local Chubb office, or email info@chubb.com.

© 2003 Chubb & Son, a division of Federal Insurance Company. All rights reserved.

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