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David Valzania
Vice President and Department Executive for Personal Lines
Lexington Insurance Company
Website: http://www.lexingtoninsurance.com
David Valzania (02.02.08)
David Valzania is Vice President and Department Executive for Lexington’s Personal Lines group, which offers the company’s LexElite products such as homeowner’s, excess flood business and personal umbrella.
Previously, Mr. Valzania was the Zonal Executive of New England Risk Specialists Company, Inc. serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, and Eastern Risk Specialists Company, Inc., serving Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington D.C. RSC, the nation’s largest specialty excess and surplus lines broker, places business with Lexington Insurance Company and other AIG Companies.
Prior to joining RSC, Mr. Valzania was a Senior Vice President and Client Executive at Marsh. Before that he held various positions at the Risk Management Casualty Brokerage Department of Marsh and Johnson & Higgins. Mr. Valzania began his career in 1989 as a Workers Compensation Claims Adjuster at CIGNA, then an Account Specialist at CIGNA’s Special Risk facilities.
He holds a bachelor’s degree from Trinity College and a master’s degree in business administration from the University of Connecticut.
Mr. Valzania holds the CPCU and ARM designations. He served on the Connecticut chapter of CPCU Society’s board of directors from 1997 to 2004 and was chapter president from 2002 to 2003.
The Interview
Takefive:
Mr. Valzania, let’s begin by having you describe the decision-making process that went into Lexington’s decision to introduce its Upgrade to GreenSM Residential product?
David Valzania:
Lexington’s motto is “Market Leadership Powered by the Spirit of Innovation” so we have a strong commitment to new product development and underwriting flexibility. We developed the “Upgrade to Green” product to complement our LexElite Homeowner’s product. It is Lexington’s goal to be the leader in the insurance market for environmentally concerned homeowners. With this product, we are also contributing to AIG’s company-wide goal to embrace the green movement.
Takefive:
Can you describe in which states you have rolled out this product?
David Valzania:
Upgrade to Green is currently available in New England, New York and New Jersey with planned nationwide expansion in early 2008. We chose to introduce this product into this market due to the traditionally high energy costs as well as high level of environmental awareness in this area.
Takefive:
Can you explain some of the major provisions of the Upgrade to Green policy?
David Valzania:
Upgrade to Green was developed to allow an insured, in the event of a loss, to upgrade damaged property to property that is identified as:
energy efficient,
durable,
sustainably produced,
containing recycled content
improving indoor air quality and/or water efficiency, or
Energy Star certified
Examples include:
Replacing damaged or destroyed appliances, home electronics, or office equipment with products that have been identified as “Energy Star” or equivalent products of such energy efficiency.
Replacing damaged or destroyed interior paints, carpet and floor coverings, counters, cabinets and partitions with products that have lower emissions, are sustainably produced, are rapidly renewable or include recycled content.
Replacing damaged or destroyed interior plumbing fixtures such as toilets, shower headers, lavatory faucets with products that are more “water efficient”.
Replacing damaged or destroyed lighting systems, including bulbs, with products that have been identified as “Energy Star” or equivalent products of such energy efficiency. Additionally, if an exterior lighting fixture is damaged or destroyed, we will also pay to provide a motion sensor control for such lighting fixture.
In addition to the upgrade coverage already described, in the event of “total loss” we will pay to rebuild to the requirements specified in the applicable Energy Star Builders Option Package. We will also pay costs:
Of a contractor participating in a locally sponsored Home Performance with Energy Star Program
To verify proper operation and optimization of the HVAC systems
Of a Home Energy Rater certified by the Residential Energy Services Network (RESNET) to verify compliance with the Energy Star Builders Option Package
The insured, at his/her sole discretion, can elect not to upgrade any or all property if the so choose.
Rebates the insured may receive for upgrading to more energy efficient property will not be deducted from the amount we will pay.
Takefive:
What has been the reaction so far of consumers to your new product?
David Valzania:
Our product is still in the early stages of availability to insureds. While it is a little early to predict the reaction of consumers, our feedback from our agents and brokers has been extremely favorable.
Takefive:
Finally, what are Lexington’s plans for this product in 2008, and does your company plan to introduce other “green” products in the near future?
David Valzania:
Lexington will continue to introduce new green products in 2008. The next of these will target consumers who are already “green” and have unique insurable needs as a result, and will be launched in the first quarter of 2008. For homeowners who produce their own energy, this new product will offer coverage for loss of income sustained and utility expenses incurred, due to the interruption of their energy generation in the event of a claim.
Lexington will also be releasing Upgrade to Green Commercial in February 2008. This commercial product is similar to the residential product except the upgrades are tied to Leadership in Energy and Environmental Design (LEED®).
We also plan to introduce a carbon forestry product that insures the assets being used to sequester carbon and create offsets that are sold to third parties. This is in direct response to the Kyoto Protocol and the developing concerns around greenhouse gas emissions and climate change.