In today’s Sunday Business section of The New York Times, American International Group ran a full page ad to its customers, agents, brokers, advisors, and “other partners.”
AIG’s chairman and CEO states that despite the fiancial problems of the parent-holding company, the subsidiary insurance companies are strong, solvent, able to pay claims, and able to write new and renewal business. In essence, the state insurance regulators have kept the insurance companies safe and sound. Mr. Liddy states that “your policies are safe.”
AIG has to make sure that its customer base does not leave it for other insurance companies. This public relations blitz is intended not only to reassure its current policyholders, but reassure customers up for renewal as well as new customers.
We feel that the AIG insurance companies are strong and will continue either under the umbrella of AIG or a new owner. It is possible that various insurance operations will have to be sold to pay-back the federal government.
If you are an AIG assured and if your policy is coming-up for renewal, I recommend that you discuss these issues with your insurance broker or agent. I also recommend that you check the insurance company’s rating with Best’s prior to renewing.
Mark E. Seitelman, 9/28/08, www.seitelman.com.