AIG No Longer in Canada
AIG has announced that it will be ceasing personal lines operation in Canada effective immediately for new business and June 30th, 2019 for renewals.
Impact To Private Families
Many families with cross-border exposure will be affected as AIG was one of two insurers to offer solutions (Chubb being the other). With AIG being the more competitive of the two, this will create a vacuum which will lead to the following-
- Rate increases due to lack of competition
- Potential new entrants into cross-border private client market
- Segregated program management necessary with separate US/CAN insurers/brokers
Larger brokerages and those with cross-border capability will be able to weather the fallout better than smaller firms who relied on AIG to facilitate the administration of multi-country insurance programs.
More to come as this story evolves.
About the author
Bob
Strategist | Advisor | Thought Leader
Bob Raymond manages risk for many of the country’s preeminent families and family offices. He is an outside director, educator, and the founder of privateRISK.