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American International Group. Operations for Financial Services Warren Berey – Nicole Boone 15 December 2003. Company Structure. Domestic Structure. Product Innovation / Offerings Segmentation by company / business unit Marketing (segregated by size) Middle Market (Revenue
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AIG
American International Group
Operations for Financial Services
Warren Berey – Nicole Boone
15 December 2003
AIG
Company Structure
AIG
GeneralInsurance
LifeInsurance
FinancialServices
RetirementPlanning
ClaimServices
DomesticGeneral
Foreign General Personal Lines United GuarantyTransatlantic
Holdings
National Union American Home Environmental LexingtonRisk
ManagementHartford Steam
Boiler
ManagementLiability
ProfessionalLiability
FinancialInstitutions
Bonding
AIG
Domestic Structure
• Product Innovation / Offerings– Segmentation by company / business unit
• Marketing (segregated by size)– Middle Market (Revenue <= $100m)
• Small Business (Revenue <= $10m)
– Commercial (Revenue >$100m and <= $700m)– National (Revenue > $700m)
• Operations (10 regional offices)
AIG
Product Offerings
Unit GL Prop. X/S Fin. Enviro A&H
RMG X
Lex. X X
AH X
NU X
C&I x X
Life X
NAD X x
Other X X
AIG
Distribution
• Distribution via independent brokers– Alpha– 2nd Tier– Regional
• Limited agent distribution– Risk Specialists Offices
• Very limited direct distribution
AIG
AIG Access Points
• Underwriting Direct (via broker)
• AIG Mail Rooms
• Info Exchange– [email protected]– (U.S.) 1-877-638-4244– (Worldwide) +1-908-679-3150
• accessaig.com
AIG
DBG Access Points
• Customer Care Center (C3)– 1-877-TO SERVE– [email protected]
• eUnderwriting– eWriter (Management Liability)– EXS (Umbrella)– PEGA (Workers Compensation)– e-Worldrisk (Multinational GL)– XML (Managing General Agents)
AIG
Business Development Process
• Renewals– Solicitation letters– Deadline letters– Impact of service levels
• New Business– Cross sales
• Costs of new lines v. new customers• Exit costs for clients• Limitations on spans of expertise
– New Accounts
• Claims Processing
AIG
Productivity & Efficiency
• Management Accounting– Income Statements
• By Unit, Product, Market Segment, Region
– Cash Flows (by same divisions)
• Current Efficiency Metrics– Timeliness– Accuracy
• Possible Future Metrics...
AIG
Operational Risks
• Risk Aggregation• Adequate Reserving• Data Integrity / Controls
– Sarbanes-Oxley– Attrition / Information Leakage– Legacy systems
• Claim Servicing• Technology Dependability / Reliance
AIG
Future Recommendations
• Distribution Operations Design– Alternative Channels– Cross Selling– System Uniformity
• Mitigating Operational Risk– Improve Data Quality– Lessen Administrative Burden
• Align Evaluation with Business Objectives– Balanced Scorecard– DEA
AIG
Q & A
