The Travelers Companies, Inc.TRV recently unveiled Quantum Home 2.0, which will help the company offer its clients a much more efficient and simplified way of communication. The product introduced of late will enable the property and casualty (P&C) insurer to improve services and also bring in new business.
Details of the Product
The new offering is basically an improved homeowners insurance product with customized pricing and more flexible coverage options. Interestingly, the product provides the aforementioned services through simpler policy documents that will allow the company's clients in better understanding of their insurance.
Additionally, the P&C insurer's new product will help agents seamlessly quote and bind coverage. The product will boast improved features like new discounts for clients, decreasing deductible and loss forgiveness options, acknowledging customers' loyalty.
This newly designed item is available in Colorado, Oregon and Wisconsin with more states planning to introduce it in mid-2018.
Benefits of the Product
Apart from increasing agents' efficiency as well as boosting the service portfolio, the new product will help the P&C insurer improve its personal lines of business. Travelers has made a name for itself as an auto and homeowners insurance writer. Therefore, with a wide range of product offerings at its disposal such as the new one discussed here, the insurer will continue to reap benefits from its strong market position and economies of scale.
Zacks Rank and Share Price Movement
Travelers holds a Zacks Rank #2 (Buy). Shares of Travelers have outperformed the industry year to date. The stock has gained 2.5% compared with the industry's 2.4% increase. We expect high retention rate, pricing gains, positive renewal rate changes, a strong capital position and inorganic growth to drive the shares higher in the near term.
Other Stocks to Consider
Investors interested in other stocks from the insurance industry can also consider Radian Group Inc. RDN , Alleghany Corporation Y and American Financial Group, Inc. AFG , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Radian Group offers mortgage and real estate products and services in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 7.87%.
Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company came up with positive surprises in two of the last four quarters with an average beat of 2.91%.
American Financial provides property and casualty insurance products in the United States. The company pulled off positive surprises in all the last four quarters with an average beat of 26.31%.
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