DOCSLIB.ORG

2012 Connecticut Insurance Market Report Ideas, Strategies and Perspectives from the Connecticut Insurance Industry

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2012 Connecticut Insurance Market Report Ideas, Strategies and Perspectives from the Connecticut Insurance Industry www.pwc.com 2012 Connecticut insurance market report Ideas, strategies and perspectives from the Connecticut insurance industry November 9, 2012 About PwC Although the worst of the financial crisis is over, insurers still face a challenging economic environment. Maintaining adequate capital, managing risks, retaining business, containing costs and achieving profitable growth in a highly competitive market are essential to long-term success. As the leading provider of professional services to insurance companies, PwC has extensive knowledge of the issues, trends and challenges that matter to insurers. We use integrated teams of insurance accounting, tax, business and information technology advisory professionals to help our clients address critical business issues. Our client base includes more than 4,000 insurance companies around the world. The depth and breadth of our insurance industry experience means that PwC has the right resources to serve our clients, whatever their issues, wherever and whenever they need us. About Connecticut Insurance & Financial Services Cluster (CT IFS) With the understanding that strong insurance and financial services sectors are critical to sustaining economic and employment growth in Connecticut, the MetroHartford Alliance developed The CT IFS cluster in 2003. The CT IFS cluster is a strategic initiative comprised of 30 corporate sponsors whose shared vision is to create competitive advantages in business attraction and retention, to assist with recruitment and education of a trained workforce, and to increase public awareness through advocacy. Leaders from business, state government and academia collaborate to foster growth among all of the industries’ segments. Introduction by Governor Malloy November 9, 2012 As the Governor of the State of Connecticut, I am pleased to present the 2012 Connecticut Insurance Market Report prepared by the Connecticut Insurance and Financial Services Cluster and PricewaterhouseCoopers LLP. The insurance sector has a lengthy and rich history in our state, and I look forward to its continued growth. It has been over two centuries since industry pioneers founded some of the country’s first insurance companies in Connecticut. Today, insurance is a vital sector of our economy, with Connecticut ranking #1 nationally in insurance employment as percentages of both total employment and total payroll. In addition, Connecticut insurance companies have created a supply of skilled professionals and contributed to a median state income that ranks third highest in the nation. According to Moody’s, each new insurance job adds 1.46 jobs to the Connecticut economy. To that end, Connecticut looks to expand the insurance industry not only domestically but also to a global network of customers, partners and suppliers. My administration recognizes the significance of insurance companies to the Connecticut economy, and I am committed to improving Connecticut’s business climate and attracting and retaining top talent. Fortunately, we have several educational programs in the state that continue to provide an educated and skilled supply of human capital. My hope is that we can position Connecticut to remain an Insurance Capital for the next 200 years. There is much opportunity in Connecticut, and we invite you to seize that opportunity by joining the most important and impressive insurance community in the world. Dannel P. Malloy Governor Introduction by PwC November 9, 2012 Connecticut is a vibrant and growing business community, of which PwC and our employees are proud members. As a leading professional services firm, we are deeply committed to serving this state and its many thriving industries, including insurance. And of course, we are far from alone. Over 50,000 Connecticut citizens are directly employed by the insurance industry, with many more indirectly impacted from both a business and community perspective. This report is the culmination of months of work and collaboration with more than 100 contributors from the insurance, financial services, government and educational sectors. Together, we have combined global and local statistics, thought leadership and insightful executive perspectives to create a clear picture of the Connecticut insurance sector’s rich history, current status/issues, and promising future. After reading this report, we are confident that you will agree that the insurance industry is vital to Connecticut’s prosperity and be impressed by Connecticut’s role in the global insurance ecosystem. It has been a pleasure working with the Connecticut Insurance and Financial Services Cluster and other contributors on this important report and our sincere thanks to all who have participated. Through continued teamwork and investment in the industry, we can all play a part in helping Connecticut maintain its global insurance leadership role well into the future. Sincerely, Paul V. Veronneau Hartford Advisory Leader, PwC Introduction by CT IFS For hundreds of years, the insurance industry has been synonymous with Hartford and Connecticut—the Insurance Capital. Perhaps it’s because of its competitive focus on technology, an unyielding commitment to quality and excellence for the consumer, and a global reach to the consumer and financial markets. Or maybe it’s because our employees are the most educated and experienced in the industry. All things considered, the insurance industry is one of the most vital in Connecticut. As the CT IFS, an initiative of the MetroHartford Alliance, we host the Insurance Market Forecast in Hartford to bring together the brightest minds in insurance. Our collaboration with PwC has produced this Insurance Market Report, a significant source of information and thought leadership for Connecticut’s insurance industry. Together, along with our business partners in state government and academia, we continue to support and encourage the next generation workforce to advance the industry to even greater heights. On behalf of the leadership of the CT IFS, we are pleased to provide and invite you to learn about this dynamic industry in the Insurance Capital. Susan Winkler James Bedard Oz Griebel Executive Director Chair, CT IFS President and Chief CT IFS Executive Officer, Chief Financial Officer/ MetroHartford Alliance Chief Operating Officer, Northeast Region, UnitedHealthcare Table of contents Executive summary 1 A rich history 3 A vital sector of Connecticut’s economy 13 Connecticut by the numbers 13 Insurance in Connecticut 16 Top insurance issues for 2012 17 Employment 18 Wages 22 Gross State Product 25 Insurance connectivity 27 Customers 28 The Connecticut Insurance and Financial Services Cluster 32 Asset management 33 Education 36 Community 39 Government 42 Other partners/suppliers 59 Competing globally 59 Looking ahead—Insurance 2020 65 Strategic opportunities 65 Strategic drivers and factors 66 Social 69 Technological 73 Environmental 78 Economic 79 Political 81 Implications for the future of your business 83 Connecticut Insurance and Financial Services Cluster Members 89 Acknowledgments 99 Supporting thought leadership 104 PwC | 2012 Connecticut Insurance Market Report Perspectives Making healthcare simpler, more personal for consumers, 31 Gail Boudreaux, Chief Executive Officer, UnitedHealthcare Asset management in insurance: Increasing complexity is changing the 34 rules of the game, Woody Bradford, Chief Executive Officer, Conning The impact of the Travelers Championship in Connecticut, Brian MacLean, 41 President and Chief Operating Officer, The Travelers Companies Connecticut insurance regulatory environment, Thomas Leonardi, 43 Commissioner, Connecticut Insurance Department Connecticut economic development, Catherine H. Smith, 53 Commissioner, State Department of Economic Development ConnectiCare’s Provider Partnerships reflect collaborative approach to 58 healthcare, Michael R. Wise, President, ConnectiCare, Inc. & Affiliates Pioneering innovative customer-centric global health services, 63 Matt Manders, President, Regional and Operations, Cigna Corporation Making the P&C industry more relevant, Mike McGavick, 64 Chief Executive Officer, XL Group plc Lincoln Financial Group empowers an aging society to sustain financial 68 independence, Mark Konen, President, Insurance and Retirement Solutions, Lincoln Financial Group Saving for retirement, Christine Marcks, President, Prudential Retirement 70 Technology, communication and the “personalization” of retirement 72 saving, Maliz Beams, Chief Executive Officer, ING US Retirement The importance of data, analytics and models to the current and 74 future success of property and casualty insurers, Michael Klein, Senior Vice President, The Travelers Companies Tapping a neglected supply of energy, Greg Barats, President and Chief 77 Executive Officer, Hartford Steam Boiler Inspection and Insurance Company The Terrorism Risk Insurance Act, Doug Elliot, President, 82 Commercial Markets, The Hartford Financial Services Group Creating the new healthcare marketplace, Mark Bertolini, 84 Chairman, Chief Executive Officer and President, Aetna PwC | 2012 Connecticut Insurance Market Report Executive summary Connecticut by the numbers Connecticut’s rich history in insurance Like most of the world, Connecticut dates back to more than 200 years is being impacted by the economic Population 3,580,709 ago when industry pioneers founded downturn. The state’s seasonally some of the country’s first insurance adjusted unemployment rate remains Population growth rate 3.5% companies. With an enduring success
Load more

Recommended publications
  • Travelers Tower CENAXO, LLC Offi[email protected] 16 Tolland Turnpike Willington, CT 06279 One Tower Way, Hartford, CT T 860.477.1400 F 860.477.1412
    Travelers Tower CENAXO, LLC offi[email protected] 16 Tolland Turnpike Willington, CT 06279 One Tower Way, Hartford, CT T 860.477.1400 F 860.477.1412 www.cenaxo.com • Lead Paint Removal • Joint Sealants • High Performance • Temporary Window Protection SM Coating System • Cast Iron and Copper Surfaces • Decorative Architectural Elements The neoclassical style Travelers Tower, located in Hartford, Connecticut, was designed by architect Donn Barber, the same architect responsible for designing the Connecticut State Library, Connecticut Supreme Court building and the Hartford Times building. The 34-story tower, completed in 1919, was built out of pink granite, cast iron and copper. Cenaxo was selected to restore the cast iron elements and copper cornice of the Travelers building. Cenaxo’s experi- enced craftsmen were the rst to work on the deteriorating cast-iron and copper since the building’s completion over 90 years ago. During the restoration process, our crew removed the origi- nal lead-based coatings using chemical and media cleaning methods. After properly preparing the surfaces, our team applied a three-coat uoropolymer paint system, selected for its extreme durability. After beginning the project, there were concerns regarding the impact that the painting application process could have to the building occupants. Since the Travelers Tower was to remain fully operational throughout the entire restoration project, our crew implemented a special shift system for the painting application to minimize the impact on Travelers’ employees. Cenaxo adjusted to meet our customer’s needs while still ensuring the highest quality workmanship possible. Travelers Tower with staging Cast Iron Before Cast Iron After Copper Before Copper After.
    [Show full text]
  • Front Street' Downtown Development Neighborhood
    Trinity College Trinity College Digital Repository Hartford Studies Collection: Papers by Students and Faculty Hartford Collections 5-12-2003 History of the 'Front Street' Downtown Development Neighborhood Cheryl Magazine Trinity College Follow this and additional works at: https://digitalrepository.trincoll.edu/hartford_papers Part of the Urban Studies and Planning Commons Recommended Citation Magazine, Cheryl, "History of the 'Front Street' Downtown Development Neighborhood" (2003). Hartford Studies Collection: Papers by Students and Faculty. 4. https://digitalrepository.trincoll.edu/hartford_papers/4 History 835: History of Hartford Elizabeth Rose/Mark Jones Cheryl Magazine 5/12/03 Introduction The story of Hartford’s rise and fall as a city of wealth and influence can be told through the history of a relatively small plot of land in the southeast downtown area. Once home to a number of Hartford’s founding fathers but long since abandoned as affluence and mobility made the suburbs more attractive, it is now the site of a proposed redevelopment with ambitious hopes to attract the affluent back from the suburbs to live and conduct their lives in the downtown area once again. Although there is evidence that the land was used for agriculture by native Americans for nearly 3000 years1 before the Dutch explorer Adriaen Block arrived in 16142 and the Puritans followed two decades later, this paper will focus on patterns of land use from the arrival of Thomas Hooker in 1636 up to the present day. His neighbors, Richard Webb, John Haynes, James Olmsted, Samuel Stone, James Cole, William Pantrey and Thomas Scott were all founders of Hartford along with Hooker.3 In Hooker’s time, the path from his home on Meeting House Alley4 ran north to a small structure known as the Meeting House which served as the center of town government, religion and society.
    [Show full text]
  • Hartford Times Building
    Hartford Times Building Hartford Times Building The portico showing the pillars salvaged from the Madison Square Presbyterian Church General information Status Redevelopment by the University of Connecticut Type Newspaper office and plant Architectural style Beaux-Arts Address 10 Prospect Street The Hartford Times Building is an historic Beaux-Arts building in downtown Hartford, Connecticut built as the headquarters of the now defunct Hartford Times. The newspaper commissioned architect Donn Barber, who had designed the nearby Travelers Tower and Connecticut State Library and Supreme Court Building, to build it a new structure to house its office and newspaper plant. At the time the paper was at the height of its influence with the top circulation in the state in 1917. The building was purchased by the University of Connecticut and remodeled in 2017 1 Architecture The Madison Square Presbyterian Church, whose pillars, cornices, pilasters, and windows were salvaged for use in the Hartford Times Building. The building is sited on a platform facing Burr Mall. Originally the facing mall was a street, Atheneum Square South, with the intention that the building be seen from that direction with the view flanked by the Beaux-Arts Municipal Building and Morgan Memorial addition to the Wadsworth Atheneum. The platform enables the roof line to match that of the flanking buildings and the inspiration for a columned end to an urban vista was drawn from famous Parisian examples such as La Madeleine, the Panthéon, and the Palais Bourbon. At present the view is blocked by the plantings in the mall. When planning this structure Donn Barber, the architect, was aware of the imminent demolition of the Madison Square Presbyterian Church in Manhattan.
    [Show full text]
  • A = Principal Architect C = Alterations/Renovations HARTFORD ARCHITECT DIRECTORY B = Contributing Architect D = Builder Or Artisan
    A = Principal Architect C = Alterations/Renovations HARTFORD ARCHITECT DIRECTORY B = Contributing Architect D = Builder or Artisan STREET ARCHITECT SOURCE PRIVATE BUILDING COMMERICAL PUBLIC BUILDING PLACE OF WORSHIP BRIDGE MONUMENT A,B,C DATE STREET STREET NUMBER NUMBER & STYLES EXISTING? STRUCTURES 5 7 Acton Street Y Berenson & Moses A 1925-26 CT Historical Bulletin V54, No. 1-2 (1989) Apartment House 6 8 Acton Street N Berenson & Moses A 1925 CT Historical Bulletin V54, No. 1-2 (1989) Unknown 9 11 Acton Street Y Berenson & Moses A 1925 CT Historical Bulletin V54, No. 1-2 (1989) Apartment House 10 12 Acton Street N Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) Unknown 13 15 Acton Street Y Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) House 14 16 Acton Street N Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) Unknown 17 19 Acton Street Y Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) House 18 20 Acton Street N Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) Unknown 21 23 Acton Street N Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) Unknown 25 27 Acton Street Y Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) House 29 31 Acton Street Y Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) House 33 35 Acton Street Y Berenson & Moses A 1926 CT Historical Bulletin V54, No. 1-2 (1989) House 37 39 Acton Street Y Berenson & Moses A 1925 CT Historical Bulletin V54, No.
    [Show full text]
  • Download Magazine
    D O W N T O W N H A R T F O R D C A M P U S O P E N S MAGAZINE UCONNFALL 20172017FALL FALL 2017 SNAP! UConn Class of 2021 The 5,230 freshmen who make up UConn’s Class of 2021 include 3,650 who will make Storrs their home. This class includes a record-breaking 184 valedictorians and salutatorians, and 54 percent of these newbies were in the top 10 percent of their graduating high school classes. Outside Storrs, one-third of incoming freshmen chose to attend regional campuses. UConn Stamford saw a 50 percent increase in enrollment thanks in part to its new student housing so close to New York City. Meanwhile, a move downtown for UConn Hartford drove its enrollment up 14 percent. Congrats to all of this year’s freshmen, who were competing in a field of some 36,900 applicants. UCONN MAGAZINE | MAGAZINE.UCONN.EDU FALL 2017 SNAP! Welcome Back, Coach Randy Edsall is back on the UConn sideline. Edsall is the most successful football coach in UConn history with 74 wins in 11 seasons, from 1999 through 2010. He led the team from NCAA Division I-AA to Division I-A to full Division 1 status. UConn’s three bowl wins all came under Edsall, who also oversaw consistent academic success. During his tenure the University regularly posted Academic Progress Rates well above the national average and at one time led all Division I-A public schools in graduating more than 90 percent of its student-athletes.
    [Show full text]
  • Hartford Stadium Authority
    OFFICIAL STATEMENT DATED FEBRUARY 17, 2015 ® NEW ISSUE- BOOK-ENTRY-ONLY Rating: S&P: A+ (See “RATING” herein) In the opinion of Robinson & Cole LLP, Bond Counsel, based on existing statutes and court decisions and assuming continuing compliance with certain covenants and procedures relating to requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Series 2015A Bonds is excluded from gross income for federal income tax purposes and is not treated as an item of tax preference for purposes of computing the federal alternative minimum tax. Interest on the Series 2015A Bonds may be includable in the calculation of certain taxes under the Code, including the federal alternative minimum tax imposed on certain corporations. In the opinion of Robinson & Cole LLP, Bond Counsel, under existing law, interest on the Series 2015B Bonds is included in gross income for federal income tax purposes. In the opinion of Robinson & Cole LLP, Bond Counsel, based on existing statutes, interest on the Series 2015 Bonds is excluded from Connecticut taxable income for purposes of the Connecticut income tax on individuals, trusts and estates, and is excluded from amounts on which the net Connecticut minimum tax is based in the case of individuals, trusts and estates required to pay the federal alternative minimum tax. See “Tax Matters” herein. $62,450,000 HARTFORD STADIUM AUTHORITY Lease Revenue Bonds, Series 2015 Consisting of: $39,055,000 $23,395,000 Lease Revenue Bonds, Series 2015A Lease Revenue Bonds, Series 2015B (Federally
    [Show full text]