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Alternative Solutions and Product Innovation

A global network, working for you

Alternative risk programmes from AIG often utilise the full range of our global capabilities. With one of the industry’s most extensive ranges of products and services, deep claims expertise, and excellent financial strength, we enable our clients to manage virtually any risk with confidence.

Partnership approach

We have a strong history of partnering with our clients to fully understand their needs, and providing customised innovative risk transfer and risk financing solutions.  

Experience and expertise

We have the flexibility to insure virtually all lines of business, and the technical expertise to cover risks for which there is no conventional insurance market.  

Overview

There may be times when a company needs to mitigate a substantial risk that is not addressed effectively in the traditional insurance or financial markets. The risk may be too complex or multi-faceted or just very unusual. It may be new to the market and/or have no available loss data associated with it.

AIG helps clients address these challenging exposures by providing highly customised, innovative programmes that apply insurance and/or capital market strategies. No matter how complex or material the risk, our flexibility, capacity and expertise make us the provider of choice. Our programmes can be designed for almost any exposure and are not limited to any particular class of risks.

We partner with each client to understand its objectives, identify and analyze its risks and custom-design a programme to support its business strategy. Our team has the skills and resources to guide clients through all phases of the programme—from analysis to concept development to implementation and ongoing administration. We are a market leader with the flexibility and vision to design innovative solutions and the expertise, resources and financial strength to implement them.

Who's it for?

  • Large commercial
  • Financial Institutions
  • Growing middle market companies
  • Multinational corporations

 

Programme Structures

Blended Structures

  • A single policy combines client funding of expected losses and the utilisation of risk transfer above the funded layer.

Customised Risk Transfer

  • Primary or excess risk transfer insurance policies are tailored to provide solutions for complex, unusual, or difficult to insure risks not currently addressed in the traditional insurance or financial markets.

Buyouts

  • Customised programmes are designed to offset liabilities resulting from traditional insurance risks or unusual exposures.
 
 

Features & Benefits

  • Requiring evidence of insurance for regulatory, disclosure, financing, marketing, trading, or counterparty needs
  • Facing a specific problem for which there is no clear or viable risk transfer solution
  • Encountering a situation where current market conditions or shifting underwriting capacity are limiting availability of risk transfer
  • Planning a merger, acquisition, or divestiture in which difficult risks are impeding the transaction
  • Confronting significantly increased retentions or premiums
  • Experiencing restricted coverage due to adverse industry claim trends
  • Challenged with high attachment points due to poor loss experience or market conditions
  • Exploring the possibility of retaining risk as part of a comprehensive risk management strategy
  • Pursuing more efficient access to the excess markets
  • Evaluating the closure of redundant captives in response to capital requirements under the Solvency II Directive
  • Seeking to offset significant retained or self-insured legacy liabilities
  • Managing short term volatility that could be better controlled or financed over a multi-year time horizon
  • Considering alternatives to protect against the accumulation of retained losses and/or to free up capital
  • Seeking to satisfy a primary lead layer to support an excess tower for a difficult to insure risk
  • Requiring broad flexibility regarding the type of exposure, class of risk, and/or contract issued
  • Looking to realise potential tax efficiencies
  • Seeking to insure risks that cannot otherwise be financed due to corporate structure (e.g., because a partnership must distribute all earnings, it cannot effectively fund for known risks)
  • Interested in offsetting liabilities (e.g., litigation or pollution remediation reserves)
  • Over 50 years of providing global fronting solutions leveraging AIG’s network of owned operations in over 90 countries, supported wherever required by local insurance partners
  • Over 20 years of delivering non-traditional solutions to our clients’ unique risks, using innovative structured (re)insurance solutions
  • A market leader providing non-traditional insurance and reinsurance solutions
  • Unique deal team culture bringing together underwriters, actuaries, lawyers, accountants, credit officers, claims professionals and operational specialists
  • Technical expertise to cover risks for which there is no conventional insurance market
  • Ability to analyze complex and unique risks
  • A history of partnering with clients to truly understand their business needs to provide innovative risk transfer and risk financing solutions
  • Superior servicing and claims handling, reporting, and management
  • In-depth knowledge and advice on programme structure, coverage, and regulations
  • Full access to AIG’s multinational policy issuance capabilities and expertise controlling multi-currency cash flows
  • Access to the resources of the AIG organisation, including significant risk-bearing and risk financing capacity
  • Ability to insure virtually all lines of business
  • Extensive product customisation ability
  • Broad flexibility in type of exposure, class of risk, and type of coverage (e.g., insurance, reinsurance, loans, or other financial products)
  • (Re)insurance to ring-fence liabilities (e.g., liability buyouts, portfolio transfers, captive redomiciliations)
  • Seamless policies that cover multiple risks within a single integrated programme
  • Regional fronting expertise and ability to meet local regulatory requirements
  • Full range of captive management and protected cell services.

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