continued from page 22
MICHAEL LIEBOWITZ
DIRECTOR OF INSURANCE AND RISK MANAGEMENT
NE W YORK UNIVERSITY
MEMBER OF NU’S RISK MANAGERS ADVISORY BOARD
In the course of my career I have been a Chartis/ AIG insured many times. At the beginning they had two reputations that as a risk manager you
had to be aware of: They would write insurance programs with lower-than-market premiums, only to significantly raise them in subsequent years. The second
issue was their claims service; they would never pay a
claim on a timely basis.
I am now happy to say that both of those issues
have evaporated, and the new Chartis is a very different company.
Underwriting
is done in an open
fashion and their
past practice of
increasing premiums after the first
year is no longer
an issue. From the
claims side I have
found the claims
staff to be open
and forthcoming
regarding their
position. Claims
data is usually
available quickly.
These changes have helped me gain confidence in
a company that I now want to do business with rather
than have to do business with.
There has truly been a change, and they are a more
customer-focused company.
continued on page 26
MIKE MCDONALD
VICE PRESIDENT OF ENTERPRISE RISK MANAGEMENT
QUALITY DISTRIBUTION INC.
MEMBER OF NU’S RISK MANAGERS ADVISORY BOARD
AIG has always been a predatory organization, a wolf in sheep’s clothing. They take advantage of
you at every turn and don’t recognize
the value of long-term relationships.
My company has been with them
for more than 10 years: They write
our excess-umbrella coverage above
our primary policy. We’ve never had a
claim the whole time, and I just got an
unexpected increase on our renewal,
which is coming up in two weeks.
They’re giving everybody rate increases, or so they say, but I’m not sure one size fits all when you have a client
that’s been with you 10 years and you’ve never paid a dollar out.
That’s the kind of company they are; they have not changed and that’s
why I say they are a wolf in sheep’s clothing. It’s not AIG now, it’s Chartis, but
it’s the same company.
The other thing they do on renewals is they won’t give you anything until
you tell them they are going to lose the business. Then suddenly, they recognize that maybe they should reduce your rate because you’ve been such a good
customer. I’ve been through that I don’t know how many times in my career.
That said, the one thing I hope risk managers do appreciate is that through
thick and thin, through soft markets and hard markets, they’re always there.
They’re not one of these companies that jump into directors and officers,
for example, when the market is hard and write a lot of business, then when
the market turns soft or the losses get heavy, bail out.
And they write a lot of unusual coverages; they’re creative, good marketing people. Even though they get their pound of flesh, you know you can
get the coverage.
A risk manager has to present senior management with options. Going to
them and saying there are no options is not an option.
So that is one thing I appreciate, and I hope the risk-management community does as well.
2009
80 percent to $148 million
and operating income for the
segment drops 20 percent
to $971 million.
JJJ
A AIG reports that its total
balance outstanding to the
Federal Reserve is $44.8
billion while it owes $41.6
billion to the Treasury under
TARP.
JJJ
A Meanwhile, Chartis’
Moor speaks to American
Agent & Broker, NU’s sister
publication, stating that
the company’s growth
plans include “the ele-
ments of what has made
us a success the past 90
years: a global leader-
ship position in property
and casualty and general
insurance with the largest
geographic footprint of any-
one, a breadth of product
that is unrivaled, a broad
risk appetite, experienced
underwriting and claims-
service professionals, and
industry-leading financial
strength.”
NOVEMBER 2009
A AIG stock tumbles as
CNBC reports that an
analyst with Sanford C.
Bernstein finds AIG would
suffer an $11 billion reserve
deficiency, primarily in work-
ers’ compensation, general
liability and professional
liability.
JJJ
A On Nov. 12, Robert
Schimek (pictured), CFO
of Chartis, speaks at the
National Underwriter/Ernst &
Young 21st Annual Executive
Conference for the Property
and Casualty
Industry and
denies that
the company
is underpric-
ing business.
He says competitors are
frustrated they cannot unseat
Chartis as market leader.
DECEMBER 2009
A Paul Newsome of analyst
firm Sandler O’Neill and
Partners says AIG is backing
off its plan to spin Chartis
off into a separate entity. He
says low valuations of P&C
stocks are keeping inves-
tors away from insurance
companies.
PropertyCasualty360.com
September 19, 2011 | National Underwriter Property & Casualty | 25
