2015 ANNUAL REPORT PRESIDENT’S MESSAGE FINANCIAL HIGHLIGHTS ABOUT
PENN NATIONAL INSURANCE
PRODUCT INNOVATIONS CLAIMS SERVICE ENHANCEMENTS GROWTH IN WISCONSIN AND IOWA EMPLOYEE ENGAGEMENT OFFICERS & DIRECTORS DOWNLOADS

PRODUCT INNOVATIONS

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 assesment 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.

74%

of small and mid-size businesses were targeted by cybercrime


Click to download Frequently Asked Questions about Cyber Liability Insurance

Personal Lines Telematics

This year, Penn National Insurance took a major step into the telematics market, also known as Usage-Based Insurance, with a controlled pilot with select agents in Pennsylvania.

Telematics has been proven to offer a number of advantages, including finer pricing, a reduction in accident frequency, and improved retention by offering a premium based on actual driving behaviors.

Our program, called Penn ID: Informed Driver, includes a device installed within the vehicle that communicates with a smart phone-based application.

The device collects the driving data and then transmits it to the phone through a Bluetooth connection. An app downloaded onto the phone holds the data until a Wi-Fi connection can be located, where the driving data will then be uploaded.


Click to visit the Penn ID website.

There is a 5% discount to enroll in the program. A driver can only benefit: there is no surcharge based on the observed driving behaviors, and not all drivers in a household have to participate in the program. Participants have the ability to monitor and learn from their driving through an online portal. The portal includes a user- friendly interface where miles driven, number of trips taken, average speed, max speed and the times of day most frequently driven can be reviewed. This feedback loop is where drivers can learn and improve.

For a variety of reasons, Penn ID will not be for every driver. However, a recent survey released by the Insurance Research Council found that more than half of the drivers surveyed changed their driving behaviors after installing a telematics device. Obeying the speed limit and maintaining a safe following distance were the two behaviors most likely to changes. Additionally, survey participants that received their driving Information found value in reviewing their driving habits.

Drivers age 18-34 are the most likely to participate in usage-based auto Insurance programs. This demographic is more likely to engage in a program that matches their driving behaviors to premiums paid rather than a program that only uses traditional factors such as age or credit score.

Our controlled launch has provided us with an opportunity to understand the needs of our agents and consumers. The feedback from this group will be incorporated into our state-by-state rollout beginning in 2016.

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.
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