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Insurance industry

AIG Responds to Japanese Earthquake Impact Concerns

Strategic Insights

— 1 min read

American International Group, Inc. (AIG) has issued a statement in response to questions about the impact of the Japanese earthquake on its business. The statement addresses concerns about the lack of earthquake coverage in the Japanese insurance market and highlights AIG's efforts to provide rapid and effective response to the disaster.

AIG's statement acknowledges that the Japanese insurance market does not provide extensive earthquake coverage, which means that a large portion of losses from the Kobe earthquake are likely to be uninsured. Despite this, AIG is working to provide coverage for accidental death or injuries resulting from earthquakes through its personal accident insurance policies. The company has mobilized its claims operation and is fully staffed to deal with the consequences of the earthquake.

Key Takeaways:

  • AIG has estimated its net losses, after reinsurance, to be approximately $50 million in response to the Japanese earthquake.
  • The company has a tradition of rapid and effective response to catastrophes in Japan, and is committed to providing the same level of service in this case.
  • AIG is working to provide coverage for accidental death or injuries resulting from earthquakes through its personal accident insurance policies.
  • The Japanese insurance market does not provide extensive earthquake coverage, meaning that a large portion of losses from the Kobe earthquake are likely to be uninsured.
  • AIG has reviewed lists of commercial insureds in the affected area and obtained preliminary damage reports.
  • The company is currently matching names of policyholders with available information to assess its expected pool obligations under Japanese earthquake pool arrangements.

Statistics:

  • AIG estimates its net losses, after reinsurance, to be approximately $50 million.
  • The company expects to provide coverage for accidental death or injuries resulting from earthquakes through its personal accident insurance policies.
  • The Japanese insurance market does not provide extensive earthquake coverage.
  • AIG has mobilized its claims operation with teams on the scene and 24-hour service.

Sources:

  • PRNewswire, January 19, 1995
  • American International Group, Inc. (AIG) statement

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