Global brokerage
Marsh and insurer
AIG have teamed up to offer the “major claim promise,” under which
AIG promises to pay 50% of claims costs for a major catastrophe claim within seven days of confirming coverage.
The AIG/Marsh Major Claim Promise is global, and would apply to Canada as well, a Marsh Canada representative confirmed. Likewise, the promise applies to AIG operations globally, including Canada, AIG spokesman Matthew
Gallagher of AIG told Insurance Business.
The AIG/Marsh Large Loss promise applies to commercial property and energy claims of $3 million or more. Coverage must be confirmed by the AIG examiner and he loss estimate must be agreed to by the AIG Examiner, the insured, Marsh and any retained experts.
A Marsh bulletin states that in the event of a major claim, “AIG will confirm coverage under the policy as quickly as reasonably possible.” Once coverage is confirmed, AIG will provide the policyholder with “immediate working funds” of 50% of their share of the agreed damage estimate within seven days.
This would include estimates for property damage or repairs, clean-up costs and the extra expenses or increased costs of working. Business interruption is not included in the funds advanced, Gallagher said.
Marsh said the promise may encourage other carriers to follow AIG’s example in situations in which AIG does not write 100% of a particular risk.
“The promise should be actively communicated to policyholders who should be encouraged to invoke it,” Marsh said. “There may be particular interest following Superstorm Sandy.”
Hurricane Sandy hit the eastern coast of the United States as a tropical storm in late 2012, causing reported damage estimates of between $16 and $25 billion, depending on the catastrophe modeller cited.
