Tillinghast-Towers Perrin Set To Study Personal Lines Productivity

Tillinghast - Towers Perrin said it will begin accepting companies for participation in next year's benchmarking study of expenses and productivity of U. S. personal lines property/casualty insurance.

Called SEPPCO (Study of Expenses and Productivity for Property/Casualty Operations), the study provides participants with a wide range of benchmarks that are unavailable in annual reports and other published statements and information.

``SEPPCO 2000 will provide additional benchmarks in two focus areas: claims handling practices and information technology,'' said Russ Sutter, a Tillinghast - Towers Perrin principal. ``This will complement the variety of benchmarks that SEPPCO has traditionally examined, including expense ratios by function, staffing levels, average compensation costs, use of outsourcing, average premiums and customer retention by state.

``As a result,'' Sutter added, ``participating companies will be better able to understand the costs and benefits of their information technology strategies, and will also be better able to draw comparisons with their peers. Since a number of participants use the current benchmarks to set goals for operational improvement, the new focus areas will enhance ability to do that.

``Additionally, SEPPCO 2000 will provide information on salvage and subrogation recoveries by state, claim closing rates, agent productivity and new versus renewal acquisition expenses,'' added Sutter. ``The reports are available only to participating companies, with the confidentiality of participant data strictly maintained in all SEPPCO reports.''

SEPPCO 1999 included five of the ten largest personal lines insurers and 8 of the largest 20.
Tillinghast - Towers Perrin will be accepting inquiries from companies interested in participating in SEPPCO 2000 through February.

For more information on participating in SEPPCO 2000, contact: Russ Sutter Tillinghast - Towers Perrin 101 South Hanley, Suite 900 Interco Corporate Tower Clayton, Missouri 63105 (314) 719-5834 - phone (314) 719-5853 - fax e-mail: sutterr@towers.com