In your January 2003 edition, there is an article about the retirement of our former chairman, Dean R. O'Hare.
I want to clarify a statement attributed to Mr. O'Hare in that article which suggests that Chubb "consciously overpays its claims."
Chubb's Masterpiece Policy provides arguably the broadest terms and conditions in the industry for homeowners coverage. The practice of our claim department, in first-party property claims, is to resolve and pay claims consistent with the broad terms and conditions afforded by our policy. Homeowners claims should be settled in a timely manner and on a basis which is fair and reasonable. It would be inaccurate to say that that represents "overpayment" of claims. To the contrary, while it does honor the promise and commitment of the insurance contract, it satisfies the expectations of our customers precisely because the contract itself is designed to provide such coverage. We are proud of our claims paying reputation, particularly in first-party property coverages. However, we are just as proud of our obligation to our shareholders and employees. We do not pay more than that which is due, and we have a very firm policy of not paying any claim in which fraud is involved.
I hope that the above has presented a clearer picture of Chubb's claims paying process.
John J. Degnan
The Chubb Corp.
In the Spotlight *
"People don't fear bringing bad news upstairs to their immediate superiors. It's an open-door policy that works very well at AIG. I can tell you at the end of any month almost on a real-time basis how we're doing worldwide, and so can all of the senior executives."
Maurice R. "Hank" Greenberg
Chairman and Chief Executive Officer
American International Group Inc.
"The issues that were mentioned that sang to our ears were the challenge to open the debate on senior citizen security. Economic growth should be generational. The success of the economy means all ends are successfull--the very old and the very young."
President and Chief Executive Officer
American Council of Life Insurers
"In 2002, we expect a rate of return somewhere between 3% and 4%, despite those 'gigantic' price increases of 13%. Obviously, top-line growth doesn't guarantee bottom-line growth."
Alliance of American Insurers
"We aim for a modem corporate-governance structure, a sophisticated management system that enhances transparency, does justice to the interests of all shareholders and at the same time guards the long-term interests of the group. With the new measures we respond to shareholder demands to have greater say."
Chairman, Executive Board
* Excerpted from Best Week
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|Article Type:||Letter to the Editor|
|Date:||Mar 1, 2003|
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|Depend on disclosure.|
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|In the Spotlight *.|
|A balance of power.|
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|Juries doing what they do best.|