2017 ANNUAL REPORT
PRESIDENT’S MESSAGE
FINANCIAL HIGHLIGHTS
ABOUT
PENN NATIONAL INSURANCE
PRODUCT & SERVICE INNOVATIONS
OFFICERS & DIRECTORS
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PRODUCT & SERVICE INNOVATIONS
Our focus on providing the best customer experience leads us to develop solutions for any challenge.
Pay As You Go
Since Workers' Compensation premium is based mainly on payroll, our automated Workers' Compensation billing option gives policyholders the capability of aligning premium with coverage needs.
Our automated billing option for Workers' Compensation customers, Workers' Compensation PayGo, offers the following benefits:
- Matches premium payments to actual payroll
- Improves cash flow for businesses
- Automatic premium withdrawals
- More efficient and accurate audit processes due to real-time premium calculations
- Lower down payment
- No additional paperwork for subsequent renewals
Click to download Frequently Asked Questions about Workers' Compensation PayGo
Technology E & O
New Technology Errors and Omissions endorsement protects technology services professionals
Responding to the insurance needs of a wide variety of businesses that provide technology-related services, we offer a Technology Errors and Omissions endorsement that fills in coverage gaps that can exist in clients' insurance protection. This valuable endorsement provides coverage for damages resulting from a wrongful act in conjunction with the policyholder's technology-related professional services. The farmers who founded our company in 1919 could never have foreseen this type of insurance need. As customers' insurance needs evolve with the society and economy, we move with the times and provide protection that helps our customers feel secure.
Click to download Technology Errors & Omissions marketing sheet
Convenient policyholder self-service
By using our Online Insurance Center or our Customer Contact Center phone support, policyholders can perform a wide variety of billing and policy management self-service, claim reporting and status checking. Many callers to our phone support system can accomplish their tasks and get the information they need by responding to recorded voice prompts without needing to speak to a live representative. For the small percentage of callers who need to speak to a live representative about a billing question, the on-hold time while waiting for a live representative averages about 10 seconds.
Our mobile app also offers many self-service tools, including billing and claims functions, and viewing policy information and Auto policy ID cards.
Cyber Security Insurance
With our proactive, comprehensive Cyber Security Insurance coverage, we offer coverage for one of the fastest growing risks for today's businesses. Our Cyber Security Insurance coverage provides first- and third-party liability coverage for eligible expenses and exposures associated with a data-breach incident, such as notification of a breach and remediation services for impacted individuals.
What makes our Cyber Security coverage offering unique
Our offering includes both proactive services to help minimize the occurrence of a data breach and post-breach services to provide expert assistance if one occurs. Data-breach protection and remediation services include:
- Data-breach counseling
- Crisis management
- Notification assistance
- Remediation planning
- Evidentiary support
- Online resources for proactive data-breach assessment and planning
Experts agree that it is not a matter of if a data breach will occur, but when, putting all businesses — large and small — at risk. And small to mid-size businesses are the most vulnerable to a data breach.
3 reasons to have Cyber Security coverage
1
Value-add online proactive resources, including data breach risk assessment tools
2
Immediate response from expert data breach consultants
3
Affordable premium
...that’s what a business that doesn’t have Cyber Coverage will pay for data breach services.
Click to download Frequently Asked Questions about Cyber Liability Insurance
We believe that data analytics has the potential to make a positive impact on virtually every aspect of our business.
Data Analytics
We have made significant investments in predictive analytics for both personal and commercial lines underwriting and claims.
We continued to expand the use of data analytics, including:
- Improving territory segmentations for our Homeowners line by providing more price points and finer price segmentation based upon location.
- Gathering characteristics of quotes, which allows us to analyze our competitive position and facilitate the decision-making for underwriting profitability and product development.
- Developing targeted communications to market products and services.
- Creating customer attributes and metrics to develop programs that will generate personal lines new business.
- Implementing Commercial Auto Scorecard to return optimum pricing points on new business quotes, as well as competitively pricing individual account renewals. Analytic models are already used in BOP and Workers' Compensation quoting.
Innovative solutions. Better products.
We now offer eSignature, to make it easier and faster for our customers to sign personal insurance documents.
eSignature: Increases convenience, saves trees
Offering this option removes the burden and time delay of printing, signing and returning paper, and it saves trees.
Penn ID: Usage-Based Insurance for drivers
Industry experts estimate that one third of U.S. auto insurers will offer Usage-Based Insurance by 2020. We are proud to have already launched our Usage-Based Insurance program for Auto insurance, Penn ID, in April of 2016, making us one of the first regional insurance companies to do so.
Our UBI program rewards safe driving behaviors with a discount of up to 30%.
Driving behaviors such as hard braking, excessive acceleration, time of day the vehicle is driven and number of miles driven are used to develop a vehicle-level discount. The program combines a device that is installed in the vehicle with a smartphone application. Our users have logged nearly 1,470,000 driving miles since April of 2016, with an average discount of 8% being earned. The average age of drivers using the program is 42.