The NITF is working in many ways to educate consumers, but perhaps the most significant is the Loss Prevention Partnerships–a six-site pilot program funded in part by The Ford Foundation, Nationwide Insurance, State Farm Fire & Casualty Insurance Companies, and Travelers Insurance, a member of Citigroup.

The program is addressing the perils of fire in Chicago and St. Louis, wind in Charleston, water in Staten Island, and theft in Richmond and Denver. Each partnership includes several sectors–insurance companies, city agencies (especially in fire, police and code enforcement), insurance regulators, nonprofit organization staff and residents of targeted neighborhoods.

All six sites have implemented public education campaigns and home-safety inspections, which alert homeowners to potential dangers in their homes and provide information about how to best remove or reduce theses dangers.

They also include low-interest loan programs that enable residents to remove or repair hazardous conditions in their homes, especially with respect to heating systems, electrical systems, roofs and pipes. As a result, homeowners not only understand how to reduce risk, they are provided with the means to do so.

The NITF has also developed the Certified Insurance Counseling Training Program. This two-day course for housing counselors focuses on homeowners and life insurance, risk management and loss prevention. The course offers insight into mitigating homeowner risks.

The NITF also produced the publication, “Insuring Homes: A Housing Professionals Guide to Obtaining Homeowners Insurance.” The education and publication resources developed by the NITF enable community development corporations and insurance companies to better market the products and services of both for the benefit of the customers and communities they serve.

Clearly, better-educated consumers are better risks. As we continue to be successful in this area, we will continue to reduce losses in these communities, enabling us to lower rates, write more policies and be more competitive in these communities.

The NeighborWorks NITF brings new customers to participating insurers. Because insurers have an increased presence in the neighborhood and established relationships with community-based organizations and resident leaders, there are more opportunities for communication.

Insurers develop a deeper understanding of the communitys needs, and the community better understands what is demanded of us to run an insurance business.

Insurers also get a better perspective regarding underwriting decisions. For instance, the structures in suburban communities tend to be homogeneous, and that makes it easier to determine the level of risk. Homes in urban neighborhoods tend to be more eclectic–new or old, brick or frame. By engaging in the process and sustaining a relationship with the neighborhood, insurers are better equipped to meet that neighborhoods needs.

A secondary, but important, benefit is the ability to enhance the wealth of the neighborhood. For example, we believe the location of some of our offices and those of independent agents has encouraged other businesses to locate there, thus stimulating economic growth in the community. This increase in commerce, in turn, attracts more customers for the agents located there.

The NITF also provides avenues for marketing and education through activities like neighborhood fairs. Member companies have been active in involving independent insurance agents in these efforts so they can build new business. Mentoring new agents and working with community organizations can be great sources of leads for these agents.

The bottom line is that insurers, like all businesses, have to focus on making a profit. Through work with the NITF, running a business and improving communities are goals that can be accomplished simultaneously.

The NITF brings tangible benefits to this business. We are creating a bigger pool of customers. Agents are doing more business in the community. Policy counts for our companies are up. Consumers are better off economically because their houses are more valuable. Communities are experiencing an increase in business activity.

The fact is, businesses cant afford not to participate in activities like the National Insurance Task Force.

Clayton Adams, vice president of community development at State Farm Insurance Companies, is incoming chair of the NeighborWorks National Insurance Task Force. Edward Charlebois, vice president, personal lines property for Travelers Insurance, a member of Citigroup, is outgoing NITF chair.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, October 29, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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