2018CUSTOMER

EXPERIENCE

RESULTS

TABLE OF CONTENTS

PHLYCustomerServiceA N N U A L S U R V E Y R E S U L T S

RECOGNITIONS, AWARDS AND ACCOLADES ........................................................3

MAKING THINGS EASIER FOR YOU ...................................................................... 4

ROLE OF CUSTOMER SERVICE SURVEYS AND FEEDBACK ....................................... 5

STATISTICS ..................................................................................................... 6-11

ABOUT PHLY ......................................................................................................12

RECOGNITIONCustomer Service has always been a cornerstone of success at Philadelphia Insurance Companies. Once again we have received external validation that our focus and energy on service pays dividends. From record-setting retention levels to the externally based awards and accolades, 2018 proved to be a successful year for customer service at our company. Listed below are a few of those indicators of success.

AWARDS AND ACCOLADESPHLY has long been recognized as a great place to work. These three accolades given to PHLY in 2018 validate that we believe creating a great place to work is the foundation for establishing a strong service culture.

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Best Places to Work in Insurance ( ninth consecutive year )

Best Places to Work in Pennsylvania ( tenth consecutive year )

Top Workplaces in Philadelphia ( ninth consecutive year ) PHLY is honored to be recognized as a member of Wards Top 50 for its eighteenth consecutive year.

American Business Awards The Stevie Awards comprise the business industry’s premier accolades, including the prestigious American Business Awards (ABA) and Stevie Awards® for Sales and Customer Service. PHLY earned its eleventh Stevie Award with the 2018 Silver Stevie Award for Customer Service Department of the Year. PHLY has also won two Gold Stevie Awards for Customer Service Contact Center of the Year, three Silver Stevie Awards for Customer Service Department of the Year, and one Silver Stevie Award for Customer Service Team of the Year, Account Management.

ACE Awards For the sixth consecutive year PHLY earned Confirmit ACE (Achievement in Customer Excellence) Awards. This program celebrates outstanding achievement in customer satisfaction, employee satisfaction, and partner satisfaction. Receiving a Confirmit ACE Award is a distinct honor that demonstrates the recipient’s rigorous application of customer feedback processes and its outstanding performance as measured by those processes. PHLY also received the 2018 Confirmit ACE Judge’s Choice Award for B2B.

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CUSTOMER-EXCLUSIVE RESOURCESLoss Assistance HotlinePHLY provides our Management & Professional Liability policyholders with 2 FREE HOURS of legal consultation with knowledgeable attorneys on any matter that could potentially result in a claim under a PHLY policy.

Convenient Online PortalLog into MyPHLY.com to review billing and payment history, view and print invoices and policy documents, and update your PHLY account profile information.

Installment Plans AvailableWe provide payment installments for accounts that generate at least $2,000 in premium.

PAYMENT IS EASY!Mail Your PaymentPhiladelphia Insurance CompaniesP.O. Box 70251Philadelphia, PA 19176-02051

Pay By Phone877.438.7459 (Payment is Option 1)

Pay OnlinePHLY.com/MyPHLY

CLAIMS• First party automobile losses settled in

ten days or less• Newly reported and opened claims

acknowledged the same or next business day

• National claims representation with Commercial Liability Claims Examiner niche expertise

• Subrogation and Recovery Examiners are exclusively dedicated to recovering policyholder paid losses

• 24/7 experienced and efficient claims service - consistent staff and industry leading paperless capabilities

RISK MANAGEMENT SERVICES

• Product specific web-based Risk Management Services resources through PHLY.com

• No additional cost risk management solutions for sexual abuse, active shooter, bullying, and many other exposures

• Learning Management System with over 60 courses at no additional cost

• Regular e-flyer communications on current industry issues and Large Loss Lessons Learned

• Strategic partnership solution for background and motor vehicle record (MVR) checks at preferred pricing

CONTACT PHLY CUSTOMER SERVICEAvailable Monday - Friday from 8:30 a.m. to 8:00 p.m. ET

Call 877.438.7459 service@phly.com PHLY.com Live Chat

ROLE OF THE CUSTOMER SURVEYS AND FEEDBACK

PHLY’s Voice of the Customer program (VOC) was launched in 2011 and takes a focused approach

to gathering customer feedback and developing ways in which to make it actionable for employees

across the organization. Our leadership team made the conscious decision to listen to the feedback

and then use it to drive business decisions. We can collect all the data in the world, but unless we

actually pay attention and act on it, those efforts are futile.

Each week PHLY Customer Service management reviews a case solution report outlining survey

responses that indicate an opportunity for service recovery. We have a dedicated team of

professionals reaching out to those customers to repair a broken relationship, provide needed

service, or simply explain and apologize for not being able to accommodate a request. The true

value comes in tracking the cause of those negative surveys and adjusting or revising business

practices that result in negative outcomes.

Each month every Marketing Regional Vice President receives a report of feedback about service

requests, risk management, and claims for accounts in their region. Armed with this knowledge, they

can apply a broader understanding of the service you receive to grow the relationships between

Philadelphia Insurance Companies and its customers.

Each year we invite random agency and insured contacts on record to complete our Annual

Customer Service Survey. The next few pages outline the feedback provided from the 4,229

responses we received for 2018.

Our goal is to take the feedback you provide us and continuously improve the experience and

service delivered to you, our customer.

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STATISTICS

The remaining 22% are policyholders

Percentage of respondents that were agents:

This reflects an increase in e-mail when compared to 2017 results. Telephone saw a slight decrease but is still a popular means of contacting PHLY.

Responder Demographics

How Do You Contact PHLY?

29% by phone

4% by internet/chat

57% by e-mail

3% other

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2% in person

5% through agent/broker

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PHLY.com continues to evolve as new design trends, techniques, and ideas surface. Analyzing the site’s design, content, and features as well as reviewing feedback on a regular basis helped us identify areas in need of improvement. PHLY is currently planning for website enhancements in 2019, and we look forward to seeing a shift next year with more responses in the “Strongly Agree” category.

Sufficient Information on the Internet

29 SECONDS Average Speed of Answer | 250,000 Total Number of Service Inquiries handled by the Contact Center in a year

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2018

2017

2016

Philadelphia Insurance Companies prides itself in listening to your feedback and implementing changes to enhance the customer experience. Overall satisfaction increased by 1.2% from 2017, and we continue to be determined to exceed your expectations. Thank you to our customers who indicated that they would recommend PHLY to a colleague or prospective customer. This is reflected in our strong Net Promoter Score (NPS) of 68.1. We pride ourselves on our reputation and are thrilled that you would entrust us to service others you know.

Overall Customer Service Satisfaction

96.2

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Strongly Agree Agree Neutral Disagree Strongly Disagree

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At PHLY we strive to make sure all problems are resolved, but we know there is always room for improvement. We are pleased to report that we were able to advance our resolution time in the “Immediate” category in 2018. We uphold our commitment to being responsive, accountable, and equipped with the right skills to resolve issues immediately. In a time when a response or an answer is expected immediately, our employees are working to deliver on those expectations while providing accurate and comprehensive information.

Duration to Resolve Problem

2018

2017

2016

We are pleased that many of our customers find PHLY.com effective and easy to use. Ease of doing business is a top priority in business relationships, and in the coming years technology will be at the foundation of these relationships. We intend to maintain focus on providing effective, user-friendly technology to continue to serve our customers.

Effective, User-Friendly Technology

NeutralAgree Strongly Agree

44.1

3.8

34.8 15.4

Did Not Respond

21

Disagree Strongly Disagree

2.0

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Immediate Less than one Between 2-3 Between 4-5 More than a Problem still day days days week not resolved

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Invoice SatisfactionIn October 2018 PHLY launched a new billing system to increase efficiency and flexibility while providing true agency billing and redesigned commission statements. We’re confident increased invoice satisfaction will be one of many positive outcomes our customers will experience with the new billing system.

2018

2017

2016

Our ability to resolve issues within the first request remained constant this year. Our efforts in 2019 will continue to focus on increasing this percentage as we continue to train our staff and to educate our customers.

Calls Needed to Reach Resolution

2018

2017

2016

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.00% Once Twice Three Times More than Three Times

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

Flexibility in Underwriting Service

New Quote Turnaround Time

2018

2017

2016

PHLY prides itself in having a team comprised of driven Marketing staff, supportive Account Executives, and creative Underwriters. Seventy-two percent of responses indicate that customers “Strongly Agree” or “Agree” that PHLY shows flexibility in underwriting as compared to 70% in 2017. We continue to increase our efforts around flexibility in decision-making while maintaining niche industry knowledge.

Approximately 71% of respondents were “Very Satisfied” or “Satisfied” when asked about renewal turnaround times. Our “Very Satisfied” category reflects an increase year over year. In 2016 our Small Business Unit (SBU) implemented a Quick Quote triage method that streamlined the processing of new business submissions by reducing touch points to improve handling time. We are glad to see this contributed to enhancing our customers’ experience.

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5.4 2.4

Strongly AgreeAgree Neutral

Disagree Strongly Disagree

42.8

Did Not Respond

21

20.528.9

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

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Endorsement ProcessingNew in 2018, we asked our responders about endorsement processing. Forty-seven percent of survey responses indicated they had endorsements processed within the last six months. PHLY increased authority to our Account Executives to process non-premium-bearing endorsements to quicken their speed of service. Results indicate this enhancement was effective, with 86% of responders stating endorsements are timely and 95% stating they are accurate. We will focus next on reducing the request for additional information and/or follow up needed.

Renewal Turnaround TimeSurvey responses continue to indicate strong overall satisfaction scores for renewal turnaround times. Our “Very Satisfied” category reflects an increase year over year. As customer demands change and expectations rise, PHLY is positioning itself to consistently exceed expectations.

2018

2017

2016

50.0%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied

100%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0% Processed Timely Processed Accurately Additional Info or

Follow Up Needed

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ABOUT PHLYWe design, market, and underwrite property and casualty insurance products for

niche markets, incorporating value-added coverages and services.

We compete on coverage, customized solutions, and consistent pricing, and maintain a

disciplined underwriting philosophy.

We approach the market through multiple distribution channels: preferred producers,

PHLY select producers, independent insurance producers, wholesalers, and the internet.

We continuously review and refine our business processes to improve efficiency and

the ease of doing business with us.

We seek out the best people, provide opportunities, and recognize their achievements.

We partner with local and national charitable organizations to give back to

the communities we serve.

We have 50 offices in 13 regions strategically located throughout the United States.

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Thank you !Thank you for honestly sharing your thoughts and perspectives with us. With your continued partnership we look forward to seeing our results reflect even greater satisfaction in 2019!

Thank you !

CustomerService

Philadelphia Insurance Companies is the marketing name for the insurance company subsidiaries of the Philadelphia Consolidated Holding Corp., a Member of the Tokio Marine Group. © 2018 Philadelphia Consolidated Holding Corp., All Rights Reserved