October 26, 2016 by Canadian Underwriter
American International Group, Inc. (AIG) announced on Wednesday that it has raised its property terrorism insurance limits globally to $1 billion.
The larger capacity is available to clients on a standalone basis or as expanded limits within AIG’s Large Limits property insurance offering, which provides clients with all-risk coverage limits up to $2.5 billion per occurrence, AIG explained in a press release. AIG’s prior limits for property terrorism insurance was $250 million, including in high concentration risk areas in major urban central business districts.
In many larger cities, typically those classified as “Tier 1” terrorism risks, there is limited capacity for clients seeking terrorism coverage, AIG reported. “At the same time, AIG has found that more clients, particularly those operating as multinationals, are looking to partner with insurers that have the capacity and service capabilities to help protect them against the broad spectrum of risks they face worldwide, including terrorism.”
AIG said that it will rely on its data analytics and risk engineering capabilities, including new and proprietary terrorism risk engineering services, as well as enhanced risk selection tools.
In 2015, AIG made a strategic investment with Clemson University in South Carolina to establish a risk engineering and systems analytics centre to deepen the skills sets and capabilities of its more than 600 engineers, while enhancing the company’s overall efforts to transform data analytics into actionable insight for the company and its clients.
“This coverage provides our clients with market leading capacity that will respond to terrorist attacks worldwide,” said George Stratts, AIG’s president of property and special risks, in the release. “Demand from our clients for better protection against this risk has been strong. With our reinsurance partners and the investments we have made in analytics and risk engineering, we are confident in our ability to meet this demand and help our clients better prepare for, mitigate, and manage a terrorism event.”
AIG was founded in 1919. AIG member companies provide a wide range of property and casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 100 countries and jurisdictions.