American International Group (AIG) has formed a Bermuda-domiciled subsidiary, to meet the demand for alternative risk financing programs, particularly from small and medium-sized companies across the globe.
The newly floated entity will offer customers the option of forming segregated accounts in an AIG sponsored captive.
This enables customers to access captive’s established capital, insurance license, and underwriting capabilities to retain and manage their risk, without the costs of starting and operating their own standalone captives.
AIG said that the segregated accounts company is considered an option for a company looking to share risk in order to achieve cost savings and flexibility in its insurance program.
AIG Captive Management Services in Bermuda manages the regulatory requirements, financial reporting, and administrative functions for all customers participating in Grand Isle.
AIG worldwide captive management operations head Bob Gagliardi said, "Grand Isle furthers AIG’s active participation and involvement in Bermuda’s captive insurance market.
"We see Grand Isle strengthening AIG’s commitment to our captive clients and to one of the most important captive markets in the world."