![]() for size, ITT Hartford and other insurers are pushing hard to find other pockets of desirable customers. While no other such group can match the A.A.R.P. And most important for ITT Hartford, the association membership has enough wealth to own cars and homes that need insuring, and enough income to pay for the insurance. offers a huge pool of potential customers, even bigger than the population of military officers that form the core of the insurance business built by the widely admired USAA. With more than 35 million members now, and 12 million baby boomers turning 50 in the next 12 years, the A.A.R.P. The formula exemplifies the direction that analysts say property and casualty insurers must head if they are to shake off their torpor: a clear focus on a distinct group of customers, an emphasis on serving them, and a concerted effort to squeeze costs, notably by cutting out the middleman - the insurance agent. And it has helped ITT Hartford, now independent after 25 years as a subsidiary of the ITT Corporation, keep a competitive edge in a business full of casualties. Creating a division to serve the association's members - a group whose only common denominator is that they are 50 and over - was a breath of fresh air that pushed the 186-year-old insurer to adopt new ways of doing business. That makes it one of the fastest-growing parts of the company, and a standout in an industry not growing much faster than the economy.īut the importance of the account to ITT Hartford goes far beyond growth and profits. In 1984 it was selected to sell auto and homeowners insurance to members of the American Association of Retired Persons, and that business soared to about $1.1 billion in premiums last year. It is about the last industry where you would expect a company to build a new business of more than $1 billion in revenues in little more than a decade.īut that is what ITT Hartford has done. ![]() In the troubled world of insurance, the news lately has been of mergers and layoffs, record claims and stagnant returns.
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