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.
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.
We offer a complete range of services regarding the feasibility, structuring, formation, and management of captives with an in-depth understanding of each domicile’s regulatory requirements and local business practices. Rent-a-captives through AIG’s cell captive facilities provide simple, cost-effective risk retention solutions.
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.
There are times when companies face challenges that the traditional insurance or financial markets may not address effectively. Capacity may be limited. Significant risk retention may be required. The exposure may not be covered. Market conditions may be volatile. There may be a need for locally issued insurance policies. These are just a few examples of the challenges our global fronting programmes can help meet.
AIG helps companies address non-traditional exposures by providing highly customised fronting programmes that apply insurance and/or capital market strategies. In addition, we provide captive management and advisory services regarding the feasibility, formation and management of captives, and offer cell captive facilities.
We partner with each client to understand its objectives, identify and analyse its risks and custom-design a programme to support its business strategy. Clients can choose from a wide range of innovative programmes that offer varying levels of risk retention and/or risk financing. Our programmes extend to all types of exposures and industries—providing solutions that deliver our expertise and global capabilities.
An insurance or reinsurance company formed primarily to insure its owner(s) and affiliated companies.
A client "rents" a segregated cell within a sponsored captive facility. Clients without a captive can experience many of its benefits through participation in AIG’s own captive cell facilities in Vermont and Bermuda.
Captive Management and Consulting Services
We provide a complete range of services regarding the feasibility, structuring, formation, and management of captives with an in-depth understanding of each domicile’s regulatory requirements and local business practices.
The client funds a notional experience balance in the amount of the policy limit. This funding can take place pre-loss, post-loss or some combination. The notional experience balance is increased by interest credited and annual deposit premiums paid, and reduced by losses paid. At policy end, any residual balance would be returned.
A programme in which the client retains ultimate financial risk within a defined layer by agreeing to indemnify the insurer for all losses and other amounts paid in respect of that layer.