American International Group

1
American International Group

• Operations for Financial Services
• Warren Berey Nicole Boone
• 15 December 2003

2
Company Structure
3
Domestic Structure

• Product Innovation / Offerings
• Segmentation by company / business unit
• Marketing (segregated by size)
• Middle Market (Revenue
• Small Business (Revenue
• Commercial (Revenue 100m and
• National (Revenue 700m)
• Operations (10 regional offices)

4
Product Offerings
5
Distribution

• Distribution via independent brokers
• Alpha
• 2nd Tier
• Regional
• Limited agent distribution
• Risk Specialists Offices
• Very limited direct distribution

6
AIG Access Points

• Underwriting Direct (via broker)
• AIG Mail Rooms
• Info Exchange
• aig.infoexchange_at_aig.com
• (U.S.) 1-877-638-4244
• (Worldwide) 1-908-679-3150
• accessaig.com

7
DBG Access Points

• Customer Care Center (C3)
• 1-877-TO SERVE
• c3_at_aig.com
• eUnderwriting
• eWriter (Management Liability)
• EXS (Umbrella)
• PEGA (Workers Compensation)
• e-Worldrisk (Multinational GL)
• XML (Managing General Agents)

8
Business Development Process

• Renewals
• Solicitation letters
• Deadline letters
• Impact of service levels
• New Business
• Cross sales
• Costs of new lines v. new customers
• Exit costs for clients
• Limitations on spans of expertise
• New Accounts
• Claims Processing

9
Productivity Efficiency

• Management Accounting
• Income Statements
• By Unit, Product, Market Segment, Region
• Cash Flows (by same divisions)
• Current Efficiency Metrics
• Timeliness
• Accuracy
• Possible Future Metrics...

10
Operational Risks

• Risk Aggregation
• Adequate Reserving
• Data Integrity / Controls
• Sarbanes-Oxley
• Attrition / Information Leakage
• Legacy systems
• Claim Servicing
• Technology Dependability / Reliance

11
Future Recommendations

• Distribution Operations Design
• Alternative Channels
• Cross Selling
• System Uniformity
• Mitigating Operational Risk
• Improve Data Quality
• Lessen Administrative Burden
• Align Evaluation with Business Objectives
• Balanced Scorecard
• DEA

12
Q A