Climate and Insurance.org | takefive with Robert Flynn

Robert F. Flynn is Vice President, Strategic Policy at Travelers, where he enhances the corporate marketplace position through the analysis and dissemination of public policy. Mr. Flynn works extensively with internal leaders and external stakeholders to affect change that enhances corporate strategy, reputation and shareholder returns. Mr. Flynn also serves as Chief of Staff in the Office of the Chief Operating Officer.

Previously, Mr. Flynn served in strategic management positions with Aetna Financial Services and a financial services technology subsidiary of Mellon Financial. Mr. Flynn had also been a manager with Deloitte Consulting, where he led teams in the financial services, insurance, pharmaceutical, and technology industries. He also spent more than 12 years as an intelligence officer at the Central Intelligence Agency.

Mr. Flynn earned his Master of Arts in Business Administration from the University of Connecticut, graduating with highest honors distinction, Beta Gamma Sigma. The School of Business has recognized his leadership by inducting him into its prestigious Hall of Fame and naming him as Finance Alumni of the Year in 2004. Mr. Flynn also earned a Master of Arts degree from the Fletcher School of Law and Diplomacy at Tufts University, completing a multidisciplinary curriculum of international business, economics, and law. He also holds a Bachelor of Arts degree in history from Trinity College in Hartford, Connecticut.

Mr. Flynn is a contributing author to the Handbook of Business Strategy (2006), Journal of Alternative Investments (2005), Measuring Business Excellence (2005), Proteus: Insights from 2020 (2000), and Handbook of Business Strategy (1998). Mr. Flynn serves on advisory boards with the business schools at both the University of Connecticut and Central Connecticut State University. He also served as the founding executive director of the Connecticut Insurance and Financial Services Cluster, a cooperative corporate venture designed to advance the industry throughout the State of Connecticut and also previously served on the advisory board of the Connecticut Hedge Fund Association.

Takefive:
Mr. Flynn, Travelers has a rich tradition of often being the first property-casualty insurance company to embrace certain innovations (first auto policy, first school to train agents), so can you briefly explain when and why your company became interested in climate change?

Robert Flynn:
Climate has always been significant to Travelers. In fact, we were the first insurer to establish our own weather research center back in 1956, so you might say we have a demonstrated history of understanding weather and its relationship to climate change. For decades, we have incorporated our analysis of and response to climate change into our underwriting, modeling and claims response. Today, we continue that focus due in large part to our strong customer-orientation. Climate change is having its impact on our customers, and we want to have a firm understanding of the trends and the effects. It’s one of the ways that we bring value to our customers.

As a Fortune 100 company, with 33,000 employees strategically positioned across the United States and internationally, we recognize that we have a responsibility to act prudently for our investors as well as for our customers. Travelers is the second largest writer of commercial property insurance in the United States and the second largest writer of U.S. personal insurance through independent agents. We take that leadership position seriously. We treat that leadership position as an obligation to lead the discussion and to create solutions.

Takefive:
Travelers has developed an internal multi-disciplinary team known as the “Core Business Climate Change Project.” Can you tell us something more about this project and some of the products and services that have resulted from this project?

Robert Flynn:
Climate change is a complex, constantly evolving issue, so we realized early on that we needed a comprehensive approach to the issue. First, we enjoy senior level guidance. For instance, climate change is a regular point of discussion at senior management levels. That senior leadership provides corporate-wide oversight and direction that gains focus through our Climate Change Committee. This Committee is more than a temporary project and has instead developed a central role in matters relating to climate. The Committee consists of representatives from all lines of business as well as relevant functional areas such as facilities, government relations and investor relations. We have articulated goals and objectives that are driven by working groups that study, create and implement initiatives along four primary areas – product and service development, risk mitigation, internal operations, and public policy leadership.

Some of our success stories in terms of product and service innovation include our discount of up to 10 percent for hybrid car drivers. We were the first to introduce such an incentive program on a national basis, providing our leadership to create insurance solutions that address the changing climate. We recently introduced WindPak coverage, again one of the first insurers to offer tailored coverage for new methods of generating energy.

In addition to such innovation, Travelers’ Climate Change Committee provides focus to our internal operations. Recently we announced our own carbon reduction goals – a 7 percent decrease by 2011. This is a major pledge by Travelers, one that demonstrates our commitment. Finally, the Climate Change Committee has had success in providing leadership in the public policy arena. We’ve done this largely in concert with environmentally-oriented partners such as the Pew Center on Climate Change, the Environmental Protection Agency’s Climate Leaders program, the Business Roundtable Climate Resolve, Ceres Investor Network, and the Heinz Center. Addressing the impact of climate change on our customers is a driving force in our company.

Takefive:
Your company has been active in raising public awareness about climate change. Can you describe your involvement with the Energy Star program and the National Hurricane Survival Initiative?

Robert Flynn:
Travelers is committed to sustainable business practices and improving the environment of the communities in which it does business. In 2006 the EPA recognized Travelers’ two largest campuses in Saint Paul, Minn., and Hartford, Conn., with the ENERGY STAR® label for demonstrating superior energy performance. The ENERGY STAR label for buildings distinguishes these two Travelers campuses as ranking among the top 25 percent nationwide in energy performance.

Focused on raising awareness related to the prevention and mitigation of climate-related losses, Travelers is a sponsor of the National Hurricane Survival Initiative (NHSI), a collaborative effort led by the National Hurricane Center, The Salvation Army, the National Emergency Management Association, and the Federal Emergency Management Agency to educate residents of hurricane-prone states on how to be prepared for a natural disaster. To spread the message about hurricane readiness, the National Hurricane Survival Initiative created an easy to use Web site at www.hurricanesafety.org. The site offers a wealth of information including storm facts, downloadable checklists and downloadable hurricane tracking maps in both English and Spanish. Additionally, the initiative has partnered with local television stations from Texas to Maine to air a 30-minute television special to help educate individuals on hurricane preparedness and safety.

Takefive:
Travelers has participated in the annual Carbon Disclosure Project for the past two years and has responded to the Investor Network on Climate Risk (Ceres). Can you tell us what it was like responding to these two organizations?

Robert Flynn:
Travelers has, in fact, responded to the Carbon Disclosure Project since CDP2 in 2004, served as a Signatory to CDP5, and has committed to standing as a Signatory through at least 2010. And we work continuously with Ceres Investor Network on Climate Risk. We recently signed on as a sponsor of a joint Ceres and Heinz Center program to strengthen coastal resiliency. We see significant value in our affiliations with CDP and Ceres. The aim of both entities is to facilitate communications between shareholders and corporations on the issue of climate change, and we welcome the opportunity to speak candidly to our investors about the strong commitment we have to addressing the issue. Travelers has a comprehensive array of activity underway that shareholders should know about, especially since it demonstrates our value as an investment.

Takefive:
Finally, as one of the few U.S. insurers to so far actively embrace several climate change initiatives we have talked about today, what advice do you have for other insurance companies that may be interested in becoming involved in this issue?

Robert Flynn:
From a business perspective, addressing climate change is necessary simply because it is important to customers and shareholders. There are just so many ways that a company can bring value – the best way, the one with greatest long-term success, is to anticipate and respond to the needs of your customers and your shareholders. That’s what Travelers does, but it is not a simple task. Climate change is a complex issue. The insurance industry has for more than a century led the charge to tackle other perils that have perplexed and threatened consumers. Our strength as an industry and our role in providing coverage for our customers demands that we identify and address the risks and opportunities presented by climate change.