AIG in the News
AIG is the nation's largest insurer. Along with writing insurance policies for homeowners and commercial businesses, AIG has various products in the reinsurance sector. Reinsurance is effectively insurance for insurance carriers. In essence, an insurance carrier that provides commercial building insurance will take a certain amount of any claim and if the claim exceeds that amount it is absorbed by a reinsurer. As a major entity offering reinsurance to insurance carriers across the globe, the financial stability of AIG truly undermined the stability of the entire insurance industry. The potential impact of AIG's financial downturn (or worse) is also much greater than just reinsurance writings; however, it is a simple but effective explanation to the non-insurance professional as to why the FED identified AIG as a "Bailout or Rescue Plan" recipient.
Please understand that we do not endorse the "Bailout/Rescue Plan", or make excuses for AIG, etc. Our goal is to offer insight as to the significance of AIG's operations and the vulnerability of the entire industry due to the financial issues of AIG.
If you have any questions, or if we can be of any assistance with your Condo Association Insurance or related insurance products, please contact us.
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