Late last week, Cincinnati Financial Corporation announced a five-year plan for its lead property/casualty insurance subsidiary, The Cincinnati Insurance Company, to bring enhanced insurance products and services to independent agents serving high net worth personal lines clients.
As part of the plan, the personal lines footprint will expand beyond current states to include Texas, Massachusetts, New Jersey and California.
Earlier this year, in an interview with Carrier Management, Cincinnati Financial’s Chief Executive Officer Steven Johnston explained the thinking behind the strategy, noting that the focus on insurance sales for affluent homeowners falls in line with similar strategies in recent years putting the company in the excess and surplus lines and the development of 18 specialize programs geared at target market like small colleges, hospices and craft breweries. “We’re looking at various areas within the agencies [where] we don’t currently have a presence,” he said.
In a statement last week, Will Van Den Heuvel, senior vice president of personal lines, noted that agencies write more than $100 million in annual premiums of high net worth business with Cincinnati Financial already. “Further development of our products and services should assure we are the carrier of choice for this portion of our agent’s accounts,” he said.
To prepare for the expansion, the company:
Has Formed dedicated high net worth underwriting and inspection teams
Has Increased capacity to cover homes up to $10 million through its Executive Classic homeowner product. The Executive Classic program provides coverage for valuable articles up to $10 million, high-valued automobiles and classic vehicles, high-valued watercraft (including yachts) and up to $25 million in excess coverages.
Will file for regulatory approval in 2015 to begin the rollout of a new suite of insurance products serving the unique needs of high net worth personal lines clients–Executive Capstone.
Executive Capstone will offer higher coverage limits and new options for home, automobile, excess liability, watercraft and valuable article products.
The suite of products is expected to be available in the second half of 2015 to agents in the state of New York and will replace the Executive Classic product once fully rolled out.
Source: Cincinnati Financial