AIG 2015 Annual Report Download - page 11

ITEM 1 / BUSINESS / COMMERCIAL INSURANCE
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Commercial Insurance Competitive Strengths and Challenges
Commercial Insurance is a global franchise committed to delivering value to our clients through innovative solutions,
market-leading expertise and superior service.
Our competitive strengths include:
Global franchise – long global history, extensive multinational network and leading positions and infrastructures in North
America, Europe and Asia
Underwriting and claims expertise – industry-leading professionals with deep expertise handling large, complex and
emerging risks
Innovation – a culture of innovation driven by risk management expertise and a focus on customer needs
Information and science capabilities – decades of unique proprietary data on wide range of client risks, underwriting
results and analytical capabilities to generate valuable client insights
Service – extensive client risk service teams to partner with clients to mitigate their most critical risks
Financial strength and market leadership – a well-capitalized, strong balance sheet highly valued by customers that
allows us to be a market leader in many lines of business
Scale – size and scope of business facilitates risk diversification to optimize returns on capital
Diversification – breadth of customers served, products underwritten and distribution channels
Our challenges include:
Information technology infrastructure requires modernization, which puts pressure on our efforts to reduce operating
expenses
Long-tail exposures create an added challenge to pricing and risk management
Over capacity in certain lines of business creates downward pressure on market pricing
Tort environment volatility in certain jurisdictions and lines of business
Volatility from natural and man-made catastrophes from a property casualty perspective