California Casualty

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California Casualty Management Company
Type Reciprocal
Industry Insurance
Founded 1914
Founders Carl G. Brown, Sr.
Headquarters San Mateo, California, U.S.
Key people Carl B. (Beau) Brown, CPCU,
President, Chief Executive Officer, Chairman of the Board
Services Insurance
Website Calcas.com

California Casualty Management Company[1][2] is in the business of providing individuals with insurance coverage, in particular those in the fields of education, law enforcement, fire fighting, and nursing.

History[edit]

In 1914, Carl G. Brown, Sr. started California Casualty Indemnity Exchange as a customer-owned company offering workers' compensation insurance to California's new and growing industries. The company was based on Carl G. Brown, Sr.’s high ethical standards and business integrity. In 1917 California Casualty began offering auto insurance, followed by home insurance in 1954. His son, Carl G. Brown, Jr. took over as Chairman in 1957 and, in 1965 codified his father’s principles in the California Casualty Code.[3]

In 1951, California Casualty pioneered what is now an industry trend of affinity insurance programs when it received the endorsement of the California Teachers Association (CTA) to provide auto and home insurance to its members. Sixty years later they still serve CTA and its members and expanded nationally with over 100 other endorsements including the National Education Association (NEA); many police, state trooper, and firefighter associations; and universities and medical centers.

In 1978, after Carl G. Brown, Jr. retired, his son, Tom Brown, carried on the family tradition and moved up to Chairman of the Board. Under Tom’s leadership the business expanded across the country when it received the NEA endorsement.

In 2007, President and CEO Beau Brown continued as the fourth generation to head California Casualty. In 2010, he was also named Chairman of the Board.[4]

Products and markets[edit]

They provide personal insurance programs for affinity groups and their members.

California Casualty offers auto insurance in 44 states and the District of Columbia and property insurance in 38 states and the District of Columbia.

They also offer personal liability umbrella, earthquake, flood, boat, recreational vehicle, snowmobile, and pet insurance through business partners.

Programs[edit]

Impact Teen Drivers[5] - California Casualty Group teamed with the California Teachers Association (CTA) and the California Association of Highway Patrolmen (CAHP) to launch a teen driver awareness program aimed at saving young lives.

The program is geared directly toward the newest drivers — 10th graders — and it focuses on making them aware of the dangers of distracted driving. The public information campaign officially launched in April 2008. The website, What Do You Consider Lethal? gives teens a chance to learn from others' experiences of the impact of bad driving judgments.[6]

Financials[edit]

California Casualty’s policyholder-owned organization is rated A- (Excellent) by A.M. Best Company.[7] California Casualty does not carry any debt on its balance sheet and has no liquidity issues. Their conservative investment philosophy prohibits exposure to the kinds of risks that have shaken Wall Street.

Legal structure[edit]

California Casualty Group comprises California Casualty Indemnity Exchange (the “Exchange”), and its four wholly owned subsidiary insurance companies: California Casualty Insurance Company, California Casualty & Fire Insurance Company, California Casualty General Insurance Company of Oregon and California Casualty Compensation Insurance Company. The insurance business of the Exchange and its subsidiary insurance companies is managed, by contract, by California Casualty Management Company, a separate and independent company. The relationship between California Casualty Management Company and the Exchange has been in place since the founding of the Exchange in 1914.

Advisory board[edit]

The Exchange is governed by a 17-person Advisory Board. The role of the Advisory Board is to supervise the finances of the Exchange and oversee the Exchange’s relationship with its attorney-in-fact, California Casualty Management Company.

Locations[edit]

California Casualty’s home office is located in San Mateo, California. The company operates three virtual call centers. The Colorado Springs, Colorado location opened in 1994. The call center in Leawood, Kansas opened in 1993. The center in Glendale, Arizona opened in 1999.

Contributions to the community[edit]

California Casualty serves the broader community in many ways. Employees dedicate significant time and effort in a variety of activities to raise money for heart disease and cancer research, and to help those less fortunate with food and gifts during the holidays. California Casualty also allows customers to reduce their mail by opting for electronic payments and document delivery.

The company fosters a culture of participation and volunteerism through a variety of programs in 41 states, including:

  • NEA Read Across America
  • Adopt A School
  • School Lounge Makeover[8]
  • Athletics Grants[9]
  • Volunteering on local phone banks
  • State affiliate charitable fund tournaments
  • Help Your Classroom monetary donation program
  • Hurricane Katrina Relief Drive
  • Tsunami Relief Drive
  • Haiti Relief Drive
  • United Way
  • Race For The Cure
  • The Family Giving Tree
  • Back To School Backpack Drive
  • JPMorgan Chase Corporate Challenge Run[10]
  • American Heart Walk

While not a complete list of activities, it illustrates the corporate citizenship of California Casualty and its employees.

The Carl Brown, Jr. Award of Excellence[edit]

On January 1, 1980 the company established the Carl G. Brown, Jr. Award of Excellence, an annual award to be given to California Casualty Management Company employee for excellence in their performance of business activities and involvement in the community.

Although many companies have such annual awards for top-performing employees, the Carl Brown, Jr. Award of Excellence has a unique theme. Tom Brown felt that the award should have a permanent exhibit in the California Casualty Group’s home offices. Edward J. Fraughton, a well-known artist from Utah was commissioned to create a sculpture of a mountain man. Fraughton created two pieces, the first entitled "Edge of Silence," is the permanent exhibit and the second entitled “The Pathfinder” is given as the annual award. The Carl G. Brown, Jr. Award goes to an employee for excellence in their performance of business activities and involvement in the community.

Competition[edit]

California Casualty does not serve the general public. They focus efforts on affinity niche market group members.

Service ratings[edit]

AM Best
California DOI's 2010 Consumer Complaint Study [11]
California DOI’s 2007 Consumer Complaint Study[12]

References[edit]

External links[edit]