JL_risklogo.png

Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

In Defense of AIG – Insurance Part Was Functioning Well

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

In Defense of AIG – The Workers Compensation Part 

The defense of AIG for the insurance part of the company made me hesitate.  I had written this post a few weeks ago.  I was just not sure that I wanted to take the heat of defending one of the most hated companies in America.

Picture Of Defense of AIG Lobby
Wikipedia – David Shankbone

I am not defending the investment part of AIG that was their downfall.  The property and casualty arm of the company has done/will do very well in the future.  AIG’s management of their insurance division is very strong and forward-thinking.  Their property and casualty marketing, underwriting, and claims departments have all performed at or better than the competition.

AIG has become very assertive on their workers comp audits.  I have noticed this trend over the last two years.   This is not out of line with most of their competitors.

One of the questions I have heard very often lately is “Will AIG survive?”  AIG is now changing their name to AIU.  This may be a good strategy.  However, people will associate AIG with failure for years to come.   I read an article today where AIG insurance personnel were glad to get the crisis behind them.   They were unfairly associated with the failures of other parts of the company.  I know quite a few AIG employees on the insurance side of the business that are at the top of their game.

Vector Graphic of Man Defense of AIG Debt Holding Shield
StockUnlimited

I do not think that AIG will completely fail.  I also think that AIG will pay back what has been lent to them by the US government.  The payback period may be over 20 years.   I do not think that AIG can keep their investment companies going very much longer.  Any company that could come up with credit swaps as a way to hide losses should not be allowed to survive.</>

I disagree that the AIG bailouts did not allow them to make lower bids and to underprice the competition.  I have seen that first-hand.  The NAIC study that was performed on this subject made the assumption that they did not have an advantage.  Being a statistician, I can tell you that if you make a presumption, you can always find certain statistics that will prove your point.

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Table of Contents

Related...

AIG – Government Missed Point

AIG Failure TARP Bailout The Government Missed The Point of AIG.The following is a passage from a document published by the UNITED STATES DEPARTMENT OF

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.