AIG expands collateral options for large-deductible casualty clients
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American International Group Inc. has rolled out a new option for companies with large-deductible casualty insurance programs looking for flexible collateral requirements.
The program allows qualified AIG policyholders to defer collateral requirements by up to 50% on large deductible workers compensation, general liability and commercial automobile liability policies on an annual basis, the insurer said in a statement Thursday. While eligibility is based on each company, the collateral flex option is available to a range of organizations, including smaller groups that haven't earned an investment-grade rating yet.
Annual amounts deferred for all policy periods the company's insurance program can range from a minimum of $500,000 to a maximum of $5 million. The amount is subject to a limit of 50% of the insured's total annual collateral posting requirement.
"Posting letters of credit or other forms of collateral for large deductible insurance programs can exacerbate the challenges companies already face with tight credit markets,” said Russell Johnston, product line executive, U.S. and Canada, in a statement. “We're offering customers an option that did not exist before. “
For additional information, contact an AIG regional casualty executive.
