The Travelers Companies, Inc. (NYSE:TRV) announced the introduction of its personal insurance product, Traverse, in Texas, which was first unveiled in New York in 2018.
Powered by a digital platform, the product offers insurance coverage to clients for certain personal items and events, extending from mobile phones, laptops, musical instruments and jewelry to even concerts and vacations. The product policy is available at $11 per month, with no deductible options, thereby providing coverage for several items.
Apart from submitting claims online, Traverse enables clients to amend policy requirements per their needs. Hence, with the product, the company intends to satisfy the continually changing buying habits of consumers.
The product is even backed with the facility of receiving claim payments directly in certain cases, without the involvement of an intermediary.
Travelers seems to be in a bid to launch products and explore new markets, which in turn, will likely boost its premium growth. The company’s Quantum Auto 2.0 is a lower-cost and lower-priced auto insurance product, which continues to drive the performance of Agency Auto. Also, the company continues to benefit from its Personal Line auto product — Optima.
The move to introduce Traverse in Texas showcases Travelers’ intention to expand its foothold in the region. It is likely to benefit the company’s Personal Insurance segment, which offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance, to individuals primarily in the United States and Canada. Net premiums in the segment accounted for 37.6% of the company’s total net written premiums and improved 5.5% year over year in 2019.
Travelers’ industry peers, such as CNA Financial Corporation (NYSE:CNA) , AXIS Capital Holdings Limited (NYSE:AXS) , and Cincinnati Financial Corporation (NASDAQ:CINF) surpassed estimates in the last reported quarters by 33.33%, 150% and 10.81%, respectively.
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The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
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