The Clarendon/Arrowhead Motorcycle Program aims to resurrect its motorcycle insurance program by offering enhanced coverages tailored to its target market of professional individuals ages 35 and older who ride motorcycles on weekends. The program will be marketed through independent agents, motorcycle dealerships, and direct sales at rallies and bike shows. Key changes include a stated value custom bike program up to $50,000, higher liability limits and medical payments, and requirements for permit operators like a mandatory $2,500 deductible and 35% surcharge. The goal is to better understand motorcycle enthusiasts' needs and stay focused on the preferred customer profile to improve performance.

1. MOTORCYCLE
Since its inception in 1995, the Clarendon/Arrowhead Motorcycle Program has failed to meet premium
expectations. Much of the decrease in volume can be attributed to the implementation of California’s
Proposition 103, which requires companies to submit sequential analysis data along with their filing
justifying their rates. Since Arrowhead did not have adequate data itself, we began doing me-too filings of
Progressive. Progressive and Arrowhead had different target markets and philosophies, which resulted in
Arrowhead offering a nonstandard program to a preferred customer. This mismatch totally derailed the
motorcycle program. We believe we can resurrect this program by offering enhanced coverages, staying
with our target profile, and having an understanding of what motorcycle enthusiasts are looking for in an
insurance product.
Our target market remains the same as it was in 1995: individuals 35 or older who wear a suit Monday-
Friday and drive a luxury sedan to work. These individuals are professionals, business people, doctors,
and lawyers.
Marketing
The Clarendon/Arrowhead Motorcycle Program will be marketed through three channels: independent
agents, motorcycle dealers and direct sales.
Preferred independent agents will be the primary source of business.
A second distribution source will be motorcycle dealers. Many dealers have licensed agents on staff,
making it easy for dealers to sell a policy when a motorcycle is purchased. Those that do not have
licensed agents will be able to refer those clients to an agent in their area.
A final source of business will be direct sales at rallies and bike shows. These events have anywhere
from 10,000 – 300,000 participants each, attending just a few of these events will give us access to
over 500,000 riders annually.
Physical Damage
Maximum coverage $10,000 per bike ($50,000 Custom Bike Program Stated Value)
Deductible $100; $250; $375; $500; $750; $1000; $2500 ($2500 mandatory for permit operators)
Physical Damage available for bikes up to 20 years old
Custom bike can be endorsed for stated value up to $50,000 per bike. (Itemized invoices required for
all accessories. Inspection form must be completed and attached to the application for used bikes
bought from a franchised dealer. Private party sales will require an itemized appraisal from a
franchised dealer to accompany the application).
Operator Requirements
Must be a licensed driver
A motorcycle learner’s permit is acceptable with a $2,500 mandatory deductible and 35% surcharge
All drivers must have 1 year of street driving experience

2. MOTORCYCLE
Target Market
Our target market is the individuals 35 or older
Professional that rides on weekends
May have up to three minor violations or 1 accident
Owns a Cruiser or Touring bike
Marketing/Distribution
Preferred independent agents will be the primary source of business.
A second distribution source will be motorcycle dealers..
A final source of business will be direct sales at rallies and bike shows.
PROGRAM CHANGES
Physical Damage
Custom Bike Program (Stated Value)
$2500 mandatory deductible for permit operators
Physical Damage available for bikes up to 20 years old
Liability
Liability limits up to 100/300/50
Medical Payments up to $5,000
Operator Requirements
Must be a licensed driver
A motorcycle learner’s permit is acceptable with a $2,500 mandatory deductible and 35% surcharge