Risk Managers & the AIG Liquidity Crisis

Between September 23rd-25th 1,000 risk managers and buyers of commercial insurance participated in an online survey about the AIG liquidity crisis. About 84 percent of respondents have insurance decision-making authority for their companies, of which 76 percent identified themselves as risk managers.

Most commercial insurance buyers reported to Advisen that, while they are confident in the financial strength AIG following the $85 billion loan by the federal government, two thirds of AIG commercial lines policyholders plan to get quotes from AIG's competitors when their policies renew. Excerpting from Advisen's Special Report, one likely outcome is that AIG will compete vigorously to retain business, potentially intensifying price competition in an already-soft insurance market. More