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U.S. Chamber Urban Investment Panel Features UIPI
Remarks by Suzanne Reade, President
Urban Insurance Partners Institute
Before the U.S. Chamber of Commerce
Three Sector Conference
July 15-16, 2003
Washington, D.C.

The Urban Insurance Partners Institute (UIPI) was invited to speak before the U.S. Chamber of Commerce Three Sector Conference in Washington, DC on July 16, 2003 on the issue of urban investment. Below are remarks that were the basis of a panel presentation at the conference.

Introduction
We are honored to be part of this important conference. The property casualty insurance industry supports UIPI because it is interested in building a stronger presence in urban markets, and there is growing recognition that investment is a component of urban marketing. We are therefore pleased to be part of this roundtable discussion on improving the urban investment climate.

Background on Urban Insurance Partners Institute
UIPI is dedicated to helping insurers navigate the urban marketplace successfully through our national workshops, special events focusing on specific urban areas, and educational programs for small commercial businesses and homeowners.

We are an educational non-profit and our supporters include a diverse group of insurers, ranging from some of the largest companies such as Nationwide, Liberty Mutual, Farmers, and Prudential, to regional companies such as American Family and Grange, and a number of smaller companies such as The Philadelphia Contributionship Companies, Hanover, and Lehigh Mutual. In recent years, we have found a growing interest in urban markets.

For many years, a number of insurance companies have made significant urban economic development investments. However, two years ago we started to educate a broader group of insurers about utilizing investments as part of their overall urban markets strategy. As a result of these preliminary discussions at our first two workshops, we have a few observations to offer. These are not intended to be definitive statements on behalf of the entire insurance industry, but rather, initial comments that we hope will promote further dialogue between our industry, other industries, government agencies and economic development leaders.

If the policy goal is to promote more urban investment by corporations, here are a few points that may help your deliberations:

Corporate Education
Judging by the dialogue at our workshops, it appears that there is much we can all do to educate corporate leaders, whether they are in insurance or other industries, about how their investment departments can support their marketing departments and their overall corporate goals, while also improving urban communities. By involving many industries, we could help overcome the perception that the financial service industry is being singled out.

Regulatory Restrictions
Since insurance companies are heavily regulated, and are required to keep adequate reserves to pay claims, they invest very conservatively. Bonds, government securities and similar investments are relatively safe, but they also produce below market yields. Some portion of an insurer’s portfolio might also include real estate or other investments.

Up to five percent of a company’s investment portfolio can be in non-rated investments, but investment managers will try to maximize their yield in this area to help make up for lower yields in other areas.

In the rest of their portfolio, insurers are penalized for holding investments that are of any lower grade than top rated investments. It is worth noting that in 2002, the property casualty industry had a return on investment of one percent.

It is impossible to make accurate generalizations for an entire industry. However, it appears that larger companies with a top down commitment to staffing social or urban investments are more likely to understand a wide variety of investment options. The investment managers will be open minded and flexible in reviewing proposals, and will find ways to develop a balanced, profitable portfolio. When proposals are brought before them in forms that are not quite final, or do not fit exactly with the company’s interest, they have the knowledge and skill to discuss improvements and options. They can work within the regulatory restrictions, using existing investment vehicles, and return a reasonable profit to their company.

In other words, a sophisticated investment department that is looking for ways to invest in urban areas, and understands how to review the proposals brought to them, can successfully develop a review process and a strategic plan for engaging in this arena.

Business Challenges
However, even among the larger companies, it is often easier to deal with financial intermediaries than to evaluate individual projects. If the investments themselves are not rated, a company may have confidence in the intermediary.

Below the top tier companies that have a commitment to this effort, the situation becomes more complex. A lack of time or resources, or a lack of understanding about the economic development sector, can combine to produce few investments.

Unless the right relationships exist, a request for economic development help might be channeled to the corporate contributions or foundation area, or a staff person within an investment department who is not operating within a strategic plan for corporate social or urban investments. In either case, the proposal may not receive the proper review.

Added to this mix is the fact that some investment requests may not fit the investment strategy of the company, or may not be in final form and thus require more corporate review time, and it may end up as a frustrating experience for all involved.

Companies that understand the best practices in this arena are more likely to develop a corporate synergy between their various departments. If so, they can maximize their corporate involvement.

They are also more likely to achieve their company’s secondary goals of winning visibility and involvement within the urban markets served by their marketing department. In other words, they are in a strong partnership with the markets they serve.

Economic Development Education
Just as there is the opportunity to generate greater efficiency and interest on the corporate side, there is also the opportunity to educate economic development leaders about the realities of the corporate review process.

We have heard that the economic development leaders are steadily growing much more sophisticated. At the same time we also hear anecdotal evidence to the contrary. Some local economic development leaders do not understand that a major company is not likely to be interested in a small, risky local investment, even if the company is located in that town. Or they may approach a small company with an investment proposal that is not fully formulated, and small companies do not usually have the staff resources to improve the proposal.

Conclusions and Recommendations
Company expertise varies considerably, and is most likely to track with the size and sophistication of a company’s investment department, the company’s interest in urban or social investment, and staff knowledge of the urban investment environment. In asking for ideas, we heard differing recommendations that seem to correlate with the sophistication of the company.

Large insurance investment departments that are building expertise in this area do not seem daunted by the challenges. They say that there is no need to develop additional investment options, because capable investment mangers can turn a reasonable profit, within regulatory restrictions, with the tools available now.

However, many others, as well as regional and smaller companies, simply will not be in a position to evaluate individual projects or take on either risky or non-rated investments to any significant degree.

Given that some companies are raising these issues, and the fact that it will take much time and many resources to bring the eligible companies up to the top level of investment knowledge and skill, it seems that any further improvements that lower risk, and make the investment opportunities easier to evaluate and utilize, would help make the investments more broadly attractive.

At the same time, we should all continue to push forward in educating companies and community development leaders.

We look forward to hearing the other conference participants speak to this issue, as we have much to learn ourselves.

Urban Insurance Partners Institute
Since UIPI is an educational organization, we will continue to educate our companies about urban investment best practices.

At our first two workshops, we had productive discussions about investments, and one of the outcomes was a recommendation that UIPI continue to educate its supporters. Since the participating companies had varying levels of experience and expertise in this arena, another recommendation was that UIPI continue to identify financial intermediaries and other organizations that can help companies better understand this area.

Thank you for the opportunity to participate.

Enormous untapped potential in urban areas,finds newly reelected Urban Insurance Partners Institute chairman
Contact: Tammy L. Rader
(317) 580-2599
April 22, 2003

CHICAGO … There is enormous untapped potential in urban areas for insurance companies, says Sue Johnson, the newly reelected chairman of the Urban Insurance Partners Institute (UIPI).

“Companies with a focused urban marketing strategy that is locally based can make large inroads into this ripe market,” comments Johnson, a vice president at GeneralCologne Re. “Now represents an especially favorable time to investigate opportunities available.”

Johnson was unanimously reelected UIPI chairman to lead the institute during a period when more companies are beginning to recognize the opportunities in urban markets. The institute has expanded its programs as interest continues to grow in learning how to effectively serve the diverse population found in cities, both large and small.

Other UIPI board members elected include Vice Chairman Guy Douyon, Liberty Mutual Group; Second Vice Chairman Irene Sewer, Grange Insurance Companies; Secretary Christina Webber, The Philadelphia Contributionship Companies; and Treasurer Paul Quinn, Farmers Insurance Group.

One new program developed during Johnson’s tenure is the UIPI commercial insurance education course, which is designed to assist insurers that provide products to small business owners. The increased growth of small businesses in urban areas, and the commercial insurance effects of Sept. 11, led to the program. UIPI also has a homeowners insurance education course.

“Sue’s leadership has resulted in greater awareness industry wide about urban markets and the institute‘s role in helping companies maximize opportunities,” notes Suzanne Reade, UIPI president. “Her reinsurance perspective adds increased dimension to the discussion.”

The nonprofit Urban Insurance Partners Institute was formed by the insurance industry in late 1996 to promote the availability of insurance. The institute is dedicated to providing insurers with the tools needed to succeed in urban areas.

Other members of the UIPI board of directors include Immediate Past Chairman Michael Yeager, Lehigh Mutual Insurance Company; Founding Chairman Lorraine Brock, Nationwide Insurance; Chuck Chamness, National Association of Mutual Insurance Companies; Harold Dorssom, Marysville Mutual Insurance Company; Linda Goff, Kentucky Farm Bureau Mutual Insurance Company; Gwendolyn Jones, American Family Mutual Insurance Company; Larry Lewis, Prudential Property and Casualty Insurance Company; Ross Miller, Hanover Fire and Casualty Insurance Company; Tim Russell, Baldwin Mutual Insurance Company; and Gerald Wright, United Farm Family Mutual Insurance Company.

Growing urban market prompts Guy Carpenter & Company to join forces with the Urban Insurance Partners Institute
Contact: Tammy L. Rader
(317) 580-2599
April 3, 2003

CHICAGO … The growing urban market is prompting Guy Carpenter & Company, Inc. of Pennsylvania to join forces with the Urban Insurance Partners Institute (UIPI).

“Urban areas are significant since the majority of the U.S. population lives in or near cities,” says Greg Ostrowski, managing director of Guy Carpenter’s Pennsylvania office. “Between the commercial and personal side of the business, it’s extremely important to be part of communities and support UIPI’s work.” The Urban Insurance Partners Institute is a nonprofit insurance industry group dedicated to promoting the availability of insurance in urban areas.

“As a world leader in the risk and reinsurance business, Guy Carpenter adds essential expertise to insurers operating in the urban environment, which benefits the institute,” notes Suzanne Reade, UIPI president. “A lot of support insurance companies can make available to insureds is based on reinsurance backing.”

Effective reinsurance can help companies manage balance sheet risk, control earnings volatility, free up capital, venture into new lines of business and exit from unprofitable lines, Ostrowski notes. Guy Carpenter provides reinsurance and risk management solutions to clients worldwide as part of the March & McLennan Companies. A need to spread the risks of harvested cotton led to Guy Carpenter’s founding nearly 80 years ago.

Ostrowski believes the knowledge UIPI can provide to companies on urban markets is vital. “The majority of UIPI supporters are our clients,” he comments. “We thought it was important to join also to work with them and the institute on any current or developing problems in that marketplace.”

Guy Carpenter has offices in 19 North American and 25 international cities, offering a wide range of services. These include Special Property, Professional Liability, Life and Annuity, Accident and Health, Environmental, Workers Compensation, Surety and Fidelity, Agriculture, Finite Reinsurance, and Program Managers Solutions.

Ostrowski encourages reinsurers to support the institute, “because of the information the institute can provide to this specific marketplace that they may not have access to.”

The Chicago-based Urban Insurance Partners Institute seeks to provide insurers with the tools necessary to be successful in urban areas. For more information on the institute and its programs, see www.uipi.org or call (773) 880-8780.

D.C. remains good place for insurers, despite renewed threats
Contact: Tammy L. Rader, UIPI  (317) 580-2599
February 27, 2003

WASHINGTON, D.C. … The District of Columbia remains a good place for insurers to do personal lines business, despite renewed concern about terrorism threats in the nation’s capital and elsewhere, emphasizes Lawrence Mirel, commissioner of the D.C. Department of Insurance and Securities Regulation.

At the annual meeting of the Urban Insurance Partners Institute (UIPI) today, Mirel said, “The latest facts and figures available show the District of Columbia is one of the strongest urban economic centers in the country. We’re pleased the institute is educating insurance companies about the opportunities available here.”

Commissioner Mirel has been working throughout his tenure to promote a strong insurance climate. He updated UIPI member companies and others today on the improved viability of the District. UIPI is a nonprofit educational organization dedicated solely to urban affairs, and supported by the insurance industry.

“We all need to look at the big picture in urban markets,” points out Suzanne Reade, president of the Urban Insurance Partners Institute. “Helping insurance companies do business successfully in urban markets is an important part of the equation.” Cities are becoming more essential to the growth plans of many insurance companies, since Census Bureau figures show eight out of 10 people in the U.S. now live in metropolitan areas.

Two groups, Social Compact and the Washington DC Marketing Center, also reported during the UIPI meeting on ground-breaking research and other efforts designed to help attract new business to D.C. The organizations gave an overview on the $24.5 billion of investment now occuring in the District.

“The data clearly indicates that the spending power of some low to moderate income neighborhoods in the District present opportunities in the personal insurance market," noted Guy Douyon, UIPI vice chairman and assistant vice president of urban market development at Liberty Mutual Group.
UIPI is working with the Washington DC Marketing Center to promote the institute’s commercial insurance education program. The education module was introduced during UIPI’s national workshop last fall. The presentation was developed at the request of regulators, community development organizations and insurers.

To learn more about the Chicago-based institute and its members, log onto www.uipi.org or contact UIPI President Suzanne Reade at (773) 880-8780.
 

Small Business Urban Growth and Terrorism Affects
Contact: Tammy L. Rader, UIPI  (317) 580-2599
October 23, 2002

Lead to Commercial Insurance Education Program

CHICAGO ... The increased growth of small businesses in urban areas, combined with the commercial insurance affects of Sept. 11, has led the Urban Insurance Partners Institute to introduce a program to educate business owners about insurance. The program will help small business owners better manage their risk by providing basic information about commercial insurance.

The educational presentation was developed at the request of community development organizations, insurers and Lawrence Mirel, commissioner of the District of Columbia Department of Insurance and Securities Regulation. The program was unveiled at the institute's national urban affairs workshop today in Chicago.

"There has never been a more important time for small business owners to be informed about insurance," Mirel said. "I credit UIPI with creating a significant program to help small business owners with a critical, but often overlooked segment, of their business plan." Mirel is the nation's only insurance commissioner with a totally urban territory. The institute plans to introduce the program in several cities, including Washington, D.C.

There have been about 22,000 commercial insurance claims from the terrorist attacks, including property damage, business interruption and workers compensation. The new UIPI program does not focus on this event, but instead provides general details small business owners need to manage their overall risk. This includes advice on how to make their business a better insurance risk and ways to reduce costs.

Development of the small business owners education program began following UIPI's first national urban affairs workshop last fall, where the idea was first presented. "We're seeing a lot of small business growth in many urban areas," notes Sue Johnson, chairman of UIPI, and a vice president with GeneralCologne Re. "Community groups emphasized at the workshop that insurance plays a critical role in helping business owners expand their operations. We are grateful for Commissioner Mirel's leadership on commercial insurance education."

For more information about the commercial insurance education program or UIPI's national workshop, contact UIPI President Suzanne Reade at (773) 880-8780, or see www.uipi.org. Other topics being covered at the workshop include marketing databases, demographics, multicultural marketing, urban investments, underwriting, insurance scoring, regulation, litigation trends, and model programs. Frank Fitzgerald, commissioner of the Michigan Office of Financial and Insurance Services provided the keynote address at lunch today. Illinois Insurance Director Nathaniel Shapo will speak during the luncheon session tomorrow.
 

Insurers Marketing to Immigrant and Ethnic Groups Grow Rapidly
FOR IMMEDIATE RELEASE
October 21, 2002
Contact: Tammy Rader, UIPI  (317) 580-2599

CHICAGO ... The vast majority of U.S. insurers are letting billions of dollars in business slip away by failing to market and underwrite effectively to large segments of the urban market, according to Andrew Nuttney, managing director of Datamonitor.

"The insurers that have started to put in place marketing and underwriting strategies to address immigrant and ethnic groups have rapidly grown large books of new business," Nuttney states. "Producers who are able to bring in this business are significantly more effective than the industry average."

A key component of writing business successfully in urban areas is a keen understanding of the market and each community served, finds the Urban Insurance Partners Institute, a nonprofit insurance industry group. Access to and proper use of quality data is so essential to doing well in urban markets, the institute has made the topic of marketing databases the focus of a morning long discussion during the group's national urban affairs workshop Oct. 24 in Chicago, during which several data experts will speak.

There are voids in credible data available for urban areas, reports the American Association of Insurance Services (AAIS), a statistical agent and advisory organization for property casualty carriers. "There is a lot of data out there," says Paul Baiocchi, president of AAIS. "The challenge is to isolate the data that is most helpful to companies striving to successfully write business in urban areas."

Baiocchi will evaluate the data that is currently available and discuss which types of information are helpful to insurance companies trying to penetrate the urban market. Nuttney will discuss proven ways to use databases to bolster urban business.

Some insurance companies have benefitted from innovative data collection techniques that reveal statistics not readily apparent from traditional methods, notes Shelly Herman, president of MetroEdge. "There are many hidden facts about urban areas that when tapped bring a whole new picture to light," comments Herman. "It is this hidden potential that becomes important when looking at urban markets." Herman will also be a part of the panel discussion on marketing databases.
The Urban Insurance Partners Institute is a Chicago-based educational organization dedicated to helping promote the availability of insurance in urban areas. "The institute believes it is essential for insurance companies to understand urban marketing data to maximize their potential in urban markets, and sees this as a continuing education process," says Christina Webber, a UIPI officer and president of The Philadelphia Contributionship Companies, the nation's oldest insurer, which was co-founded by Benjamin Franklin.

To find out more about the UIPI national workshop Oct. 23-24 at Hotel Monaco in Chicago, see www.uipi.org or contact UIPI President Suzanne Reade at (773) 880-8780.


Regulators Encourage All Companies to Learn More About Urban Markets
FOR IMMEDIATE RELEASE
Contact: Tammy L. Rader
(317) 580-2599
August 5, 2002

CHICAGO ... The rapid population shift to urban areas is creating new opportunities and challenges for insurers, prompting regulators to support a national workshop on urban insurance.
“The insurance industry has an important role to play in urban markets,” notes Terri Vaughan, president of the National Association of Insurance Commissioners, and head of the Iowa Insurance Division. “This program can help a variety of companies--life, property/casualty, and reinsurers--learn more about serving urban markets successfully.”

The workshop, called Urban Insurance Advantage, is the second annual event sponsored by the Urban Insurance Partners Institute, a nonprofit insurance industry organization. “There clearly was a need for a focused program that helps insurers compete effectively in urban markets, judging by the response to last year’s event,” says Suzanne Reade, UIPI president. “Demand for a follow-up program, led us to create an all new agenda that enables insurers to stay on top of the latest developments in urban insurance.”

Insurance regulators, legal experts, corporate executives, urban affairs leaders and other top professionals in urban marketing will lead the Urban Insurance Advantage workshop sessions. The event will be held Oct. 23-24 at the Hotel Monaco in Chicago. The workshop is geared toward insurance executives, underwriters, marketers, agents, brokers, investment managers, reinsurers, associations and attorneys.

Illinois Insurance Director Nathaniel Shapo, who spoke during last year’s UIPI workshop, the first of its kind, sees a clear benefit to insurers being involved in such a program. “Insurance has been called the glue that holds our economy together,” Shapo comments. “The very future of urban neighborhoods is thus inextricably linked to the availability of insurance coverage. That’s why I’m pleased to work with UIPI.” Members of the Illinois Insurance Department will lend expertise to workshop sessions again this year, along with other regulators.

Topics covered in the workshop will include demographics; multicultural marketing; agent recruitment and retention; urban investments; underwriting; credit scoring; regulation; litigation trends; commercial insurance; and model programs.

More information about the workshop is available from the Urban Insurance Partners Institute at (773) 880-8780, or see www.uipi.org.

American Family Expects Large Future Urban Growth, Turns to Urban Institute

MADISON, WISCONSIN ... As part of its continuing effort to expand into minority markets, American Family Mutual Insurance Company announced today it has joined the Urban Insurance Partners Institute (UIPI).

"We realize there are tremendous opportunities for our products in cities because of the sheer population density," says Gwendolyn Jones, director of emerging markets for American Family. "The Urban Insurance Partners Institute can help us learn how to maximize the potential in urban markets." The institute is a nonprofit organization supported by the insurance industry.

American Family, headquartered in Madison, Wis., is the tenth largest property casualty insurer in the country with more than $10 billion in total assets.

The company, which is celebrating its 75th year, offers several types of insurance and financial service products in 15 states.

"American Family has a substantial and growing presence in urban areas," notes Suzanne Reade, UIPI president. "Gwen is already helping us develop a synergy of urban marketing expertise among urban insurance leaders."

American Family believes education is a critical component to success in urban areas, which is a main focus of the institute. UIPI educates insurance companies about how to operate successfully in urban areas, and also teaches homeowners and potential homeowners about insurance. The institute is also developing a commercial insurance education module.

American Family began an initiative in the 1980s to increase its presence in urban markets. New products and services, efforts to expand the number of urban agents, a Spanish language advertising campaign, as well as community investment and involvement, are all part of the company's urban focus.

"Urban areas are important to every insurance company, even those that may not yet be offering products in cities," states Jones. "The institute highlights best practices, and if we do it right the market will be terrific for everyone."

The Urban Insurance Partners Institute is based in Chicago and is a 501(c)3 educational organization. For more information on institute programs and members, visit www.uipi.org or call (773) 880-8780. American Family's Web site is www.amfam.com.
 

Urban Insurance Partners Institute Chairman Named, Program Expansion Underway

WASHINGTON, DC ... The new chairman of the Urban Insurance Partners Institute is Sue Johnson, an executive at GeneralCologne Re. She was elected during the UIPI board of directors’ annual meeting in Washington, D.C.

“This is a time of growth for the institute, with several companies recently becoming new members,” notes UIPI President Suzanne Reade. “Sue has a strong interest in urban affairs and her reinsurance perspective will be very helpful.”

Previously Johnson was secretary/treasurer of UIPI, which is a nonprofit insurance industry organization devoted solely to urban affairs. Johnson is a vice president in GeneralCologne Re’s National Business Unit Treaty Division.

“Plans are already underway to expand institute programs to meet the growing urban affairs needs of companies,” comments Johnson. “We’re seeing strong support for our mission of being the insurance industry’s leading resource on urban affairs.”

Guy Douyon of Liberty Mutual Group will serve as interim vice chairman of the board. Liberty Mutual has been a guiding force in the organization since UIPI’s inception in late 1996. Douyon is assistant vice president and manager of urban market development at Liberty Mutual.

Irene Sewer of Grange Insurance will fill the newly-created board position of second vice chairman. She played a key role in the success of the institute’s first national workshop on urban insurance issues last November, serving on the Workshop Committee. Sewer is manager of emerging markets at Grange.
The head of the nation’s oldest insurance company will serve as UIPI secretary. Christina Webber, president and CEO of The Philadelphia Contributionship Companies, has been an active board member since her company joined the institute four years ago.

Paul Quinn of Farmers Insurance Group rounds out the slate of board officers as UIPI treasurer. The state executive director-Indiana has been involved in the institute’s homeowner insurance training program and chairs the Web Site Committee.

Other members of the UIPI board of directors include Immediate Past Chairman, Michael Yeager, Lehigh Mutual Insurance Company; Former Chairman Lorraine Brock, Nationwide Insurance; Chuck Chamness, National Association of Mutual Insurance Companies; Harold Dorssom, Marysville Mutual Insurance Company; Linda Goff, Kentucky Farm Bureau Mutual Insurance Company; Angela Herman, American Insurance Association; Ross Miller, Hanover Fire and Casualty Insurance Company; Tim Russell, Baldwin Mutual Insurance Company; and Gerald Wright, United Farm Family Mutual Insurance Company.
For more information about the Chicago-based institute’s programs, visit UIPI’s web site at www.uipi.org or call (773) 880-8780. UIPI is supported by a diverse group of insurers, reinsurers and insurance industry trade associations.


National Workshop on Urban Markets

CHICAGO ... The ability to write business successfully in urban markets has become increasingly important as the nation's population base consolidates to cities, prompting the Urban Insurance Partners Institute to educate companies through a workshop.

UIPI organized a national workshop in November 2001, the first of its kind, to help insurers gain the tools necessary to compete effectively in urban areas. Local Initiatives Support Corporation (LISC), a nonprofit organization dedicated to rebuilding communities, was a major co-sponsor.

"There have been many new developments in urban insurance marketing," notes Suzanne Reade, president of the Urban Insurance Partners Institute. "Our supporters determined it was important to find a way to share the latest information, which led to the workshop." The institute is funded by insurers, reinsurers and national trade associations.

Urban affairs leaders, insurance company experts and state insurance department representatives led the workshop sessions. Topics included investments as strategic tools; tax credit law; agent recruitment and retention; multi-cultural marketing; Chicago model urban programs; legal issues; community partnerships; grass-roots marketing; regulations; and technology.

"The recently enacted federal tax credit law offers insurance companies greater opportunities to use investments as an overall business strategy," says Andrew Mooney, LISC senior program director, in explaining one of the sessions.

Madelynne Brown, assistant director of the Illinois Department of Insurance, comments, "Urban markets offer excellent business opportunities for insurers."

The institute is an insurance industry organization devoted solely to urban affairs. UIPI also educates urban consumers about insurance through homeowners insurance education.

Other sponsors of the workshop included A.T. Kearney, GeneralCologne Re, Grange Mutual Casualty Company, Hanover Fire & Casualty Insurance Company, Kentucky Farm Bureau Mutual Insurance Company, Lehigh Mutual Insurance Company, Liberty Mutual Group, Lord, Bissell & Brook, National Association of Mutual Insurance Companies, Nationwide Insurance, and The Philadelphia Contributionship Companies.



New Members  

Guy Carpenter & Company
Growing urban market prompts support
The growing urban market is prompting Guy Carpenter & Company, Inc. of Pennsylvania to join forces with the Urban Insurance Partners Institute (UIPI).

“Urban areas are significant since the majority of the U.S. population lives in or near cities,” says Greg Ostrowski, managing director of Guy Carpenter’s Pennsylvania office. “Between the commercial and personal side of the business, it’s extremely important to be part of communities and support UIPI’s work.” The Urban Insurance Partners Institute is a nonprofit insurance industry group dedicated to promoting the availability of insurance in urban areas.

“As a world leader in the risk and reinsurance business, Guy Carpenter adds essential expertise to insurers operating in the urban environment, which benefits the institute,” notes Suzanne Reade, UIPI president. “A lot of support insurance companies can make available to insureds is based on reinsurance backing.”

Effective reinsurance can help companies manage balance sheet risk, control earnings volatility, free up capital, venture into new lines of business and exit from unprofitable lines, Ostrowski notes. Guy Carpenter provides reinsurance and risk management solutions to clients worldwide as part of the March & McLennan Companies. A need to spread the risks of harvested cotton led to Guy Carpenter’s founding nearly 80 years ago.

Ostrowski believes the knowledge UIPI can provide to companies on urban markets is vital. “The majority of UIPI supporters are our clients,” he comments. “We thought it was important to join also to work with them and the institute on any current or developing problems in that marketplace.”

Guy Carpenter has offices in 19 North American and 25 international cities, offering a wide range of services. These include Special Property, Professional Liability, Life and Annuity, Accident and Health, Environmental, Workers Compensation, Surety and Fidelity, Agriculture, Finite Reinsurance, Investment Banking and Capital Markets, and Program Managers Solutions.
Ostrowski encourages reinsurers to support the institute, “because of the information the institute can provide to this specific marketplace that they may not have access to.”

American Family Expects Large Future Urban Growth, Turns to Urban Institute

MADISON, WISCONSIN ... As part of its continuing effort to expand into minority markets, American Family Mutual Insurance Company announced today it has joined the Urban Insurance Partners Institute (UIPI).

"We realize there are tremendous opportunities for our products in cities because of the sheer population density," says Gwendolyn Jones, director of emerging markets for American Family. "The Urban Insurance Partners Institute can help us learn how to maximize the potential in urban markets." The institute is a nonprofit organization supported by the insurance industry.

American Family, headquartered in Madison, Wis., is the tenth largest property casualty insurer in the country with more than $10 billion in total assets.

The company, which is celebrating its 75th year, offers several types of insurance and financial service products in 15 states.

"American Family has a substantial and growing presence in urban areas," notes Suzanne Reade, UIPI president. "Gwen is already helping us develop a synergy of urban marketing expertise among urban insurance leaders."

American Family believes education is a critical component to success in urban areas, which is a main focus of the institute. UIPI educates insurance companies about how to operate successfully in urban areas, and also teaches homeowners and potential homeowners about insurance. The institute is also developing a commercial insurance education module.

American Family began an initiative in the 1980s to increase its presence in urban markets. New products and services, efforts to expand the number of urban agents, a Spanish language advertising campaign, as well as community investment and involvement, are all part of the company's urban focus.

"Urban areas are important to every insurance company, even those that may not yet be offering products in cities," states Jones. "The institute highlights best practices, and if we do it right the market will be terrific for everyone."

The Urban Insurance Partners Institute is based in Chicago and is a 501(c)3 educational organization. For more information on institute programs and members, visit www.uipi.org or call (773) 880-8780. American Family's Web site is www.amfam.com.
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Urban Marketer American Skyline Joins Industry Initiative on Urban Insurance

BALTIMORE ... American Skyline Insurance Company (ASIC), created a year ago specifically to serve urban markets, is joining an industry initiative to promote the availability of insurance in cities. The company announced today ASIC's membership in the Urban Insurance Partners Institute (UIPI), a nonprofit organization dedicated to helping insurers have a rewarding presence in urban areas.

"The Urban Insurance Partners Institute has access to experts in targeting and writing business in urban markets that we as an individual company do not have," says Earnie Hines, president and CEO of ASIC. "Even though urban areas are our focus, the institute can help us find new ways to serve our customers."

American Skyline is headquartered in the city of Baltimore, and also has an office in Washington, DC. The company now has over two dozen agents in the metropolitan areas of Baltimore and Washington, DC, providing customers with auto and homeowners insurance. American Skyline plans to add a small businessowners product within the next few months. Additional expansion along the Eastern Seaboard is slated for later this year.

The company became interested in joining the Urban Insurance Partners Institute after participating in UIPI's national workshop on urban affairs last November. "The formation of American Skyline shows the growing interest of insurers in focusing on urban areas," notes Suzanne Reade, UIPI president. "American Skyline adds another dimension to our discussions on urban markets and meeting consumer needs."

ASIC implemented a joint marketing effort with Harbor Bank of Maryland this month to further extend the company’s reach in the urban marketplace. The insurer prides itself on offering products and services geared solely to cities, with local agents in each area.

"We've found urban customers have different wants and needs than other markets, and therefore we do business a little differently,” states Hines. For example, ASIC offers a functional replacement cost homeowners policy to lower expenses for customers. Consumers with older houses containing custom features, such as plaster walls and intricate woodwork, often are primarily interested in maintaining their investment by repairing damage instead of replacing the home’s custom features. “The functional replacement cost policy provides replacement with today’s materials, which helps keep costs down for the customer,” Hines says. ASIC has a wide variety of other products.

“The institute's urban affairs workshop enabled us to come up with some interesting new ideas that we hope to develop in the near future," comments Hines. UIPI will conduct another national urban affairs workshop in Chicago Oct . 23-24.

UIPI is a Chicago-based organization that is funded by the insurance industry. To find out more about institute programs and supporters, please visit www.uipi.org or call (773) 880-8780.
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Alabama Mayor’s Company Joins UIPI
Supports Programs to Increase Understanding of Urban Insurance

As a mayor and insurance executive, Tim Russell understands the important role cities play in the insurance process.

“So many of the federal regulations are enforced by cities, which directly or indirectly impacts insurance companies,” notes Russell, president and CEO of Baldwin Mutual Insurance Company. Russell has been mayor of Foley, Alabama, for the past five years.
Baldwin Mutual became a member of the Urban Insurance Partners Institute to have an impact on urban insurance issues, through interacting with cities and other insurers on a national basis.

“The Urban Insurance Partners Institute can help us build essential relationships that we would not be able to approach individually,” notes Russell. Russell is a member Alabama chapter of the National League of Cities, one of the league’s largest, which he hopes to involve in the institute. He is also former chairman of the National Association of Mutual Insurance Companies.

The Urban Insurance Partners Institute was formed in 1996 to help give insurers the contacts, information and other resources they need to suceed in urban areas. “Tim’s knowledge will be especially helpful in broadening our scope,” says UIPI President Suzanne Reade. Russell has been elected to serve on the institute’s board of directors.

“Insurance plays such a key role in protecting economies and cities,” comments Russell. “But so many times the insurance industry gets attacked unfairly. A better understanding of insurance on the part of urban leaders is critical, which the institute can affect.”
Russell leads a company his grandfather helped found in 1921. Baldwin Mutual provides homeowners, tenant dwelling, mobile homeowners, farm, and small commercial policies to Alabama residents. The company insures 30,000 families, writing about $9.5 million annually in premium volume.

The Foley area has transformed from a strictly farming enclave to a big tourist draw, due to the city’s coastal location on the Gulf of Mexico. Windstorm and hurricane exposure remain large local concerns. Baldwin Mutual has transitioned with the changing landscape, now writing more homeowners and mobile homeowners policies than farms. However, the company still insures some of the biggest farming operations in the state, including one owned by an internationally known music group.

Despite the challenges of being mayor, Russell relishes running a $1.3 billion economy in his hometown, where he was saved by exploratory surgery at a young age. The experience led to his outlook of owing something to the community.

As mayor, Russell receives citizen calls about insurance problems. Due to this experience, he stresses the need for companies to become involved in industry efforts, such as the institute, which can positively impact communities nationwide.
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Prudential Property and Casualty Insurance Company

PRUDENTIAL JOINS THE URBAN INSURANCE PARTNERS INSTITUTE
FOR IMMEDIATE RELEASE 
Contact: Tammy L. Rader
317.580.2599
Laurita Warner, Prudential
(973) 802-9989
October 9, 2001

Supports Industry Effort to Further Urban Insurance Outreach

Chicago... Prudential Property and Casualty Insurance Company has joined the Urban Insurance Partners Institute (UIPI), a growing industry effort to create alliances among insurance companies and local urban communities.

"We like the direction the institute is taking," says Robert Ellison, director of multi-cultural marketing for Prudential's property and casualty company. "UIPI is a great resource for the insurance industry on urban affairs, which will be highlighted during an upcoming national workshop. The gathering will provide a good opportunity to bring property casualty and life insurers together to share the latest developments in urban marketing."

Prudential has played a key role in planning the UIPI workshop, called Urban Insurance Advantage, set for Nov. 14-15 in Chicago. Ellison serves on the UIPI Workshop Committee, which helped design the two-day program. A host of experts from the legal, insurance, regulatory and business communities will provide insight on how to write urban business successfully during the seminar. Model urban programs will also be featured.
"Prudential has been a leader in urban marketing, using a community based approach," notes Suzanne Reade, UIPI president. "The company's experience has proven very valuable to the institute in the short time they've been a member. We look forward to our ongoin