Global Risk Solutions (GRS)

Alternative Solutions: Benefits and Considerations

Customised Risk Transfer

Blended Structure

Buyout (LPT)
Alternative Solutions Programmes
combine structuring and risk transfer to address complex, unusual, or difficult to insure risks

Potential Benefits
• Greater control over the insurance programme structure ♦ ♦ ♦
• Ability to address risks not covered by traditional insurance or financial products ♦ ♦
• Opportunity to benefit from positive loss experience ♦
• Reduced total cost of risk ♦ ♦
• Supports programmes to provide proof of insurance ♦ ♦
• Customised policy forms ♦ ♦ ♦
• Reduced volatility of rate, capacity, and cover ♦ ♦
• Allows deductible flexibility (e.g., by location or by line) ♦ ♦
• Optimisation of risk retention strategies ♦
• Tax efficiencies ♦ ♦ ♦
• Interest earned on premiums ♦
• Cost effective alternative to captive ownership ♦
• Return of positive fund balances upon commutation ♦
• Facilitates access to risk transfer only available at higher attachment points ♦
• Premium payment flexibility ♦ ♦
• Use of manuscript forms to produce bespoke cover ♦ ♦ ♦
• Free up capital ♦ ♦ ♦
• Offset captive liabilities ♦ ♦ ♦
• Ring-fenced liabilities ♦ ♦
• Cost certainty for existing exposures ♦

Potential Considerations
• Direct impact of negative claims experience ♦
• Collateral requirements ♦
• Lack of control over investments ♦
• Liquidity to fund premium ♦
• Time frame to implement programme ♦ ♦ ♦
• Sufficient data for underwriting analysis ♦ ♦
• Regulatory approval, if required ♦
• Current interest rates and maturity of losses will affect estimated cost/benefit ♦ ♦ ♦
 Global Risk Solutions (GRS)

Global Risk Solutions Advantages

• Over 20 years of delivering non-traditional solutions to address clients’ unique risks, using innovative structured
(re)insurance solutions
• A market leader providing non-traditional insurance and reinsurance solutions
• A team culture bringing together underwriters, actuaries, lawyers, accountants, financial officers, claims professionals
and operational specialists to create unique, holistic solutions
• Technical expertise to cover risks for which there is no conventional insurance market
• Ability to analyse complex and unique risks
• A history of partnership with clients that enables us to really understand their business needs and provide innovative
risk transfer and risk financing solutions
• In-depth knowledge and advice on programme structure, cover, and regulations
• Full access to AIG’s multinational policy issuing capabilities and expertise controlling multi-currency cash flows
• Access to the resources of the AIG organisation, including significant risk-bearing and risk financing capacity
• Ability to insure virtually all lines of business
• Extensive product customisation ability
• Broad flexibility in type of exposure, class of risk, and type of contract (e.g., insurance, reinsurance, loans, or other
financial products)
• (Re)insurance to ring-fence liabilities (e.g., liability buyouts, portfolio transfers, relocation of captive domiciles)
• Seamless policies that cover multiple risks within a single integrated programme

Global Risk Solutions: Your Global Partner for Non-Traditional Solutions to Unique Risks
Visit us today at www.aig.com/globalrisksolutions
Contacts:
Global Risk Solutions is a division of AIG, the
Europe, Middle East, and Africa Canada marketing name for the worldwide property-
casualty, life and retirement, and general
Robert Turner Maureen Smith insurance operations of American International
44.207.954.8929 • robert.turner@aig.com 1.416.596.3983 • maureen.smith@aig.com Group, Inc. For additional information please
visit our website at www.aig.co.uk and the Global
Salil Bhalla Latin America and the Caribbean Risk Solutions pages at www.aig.com/
44.207.954.8492 • salil.bhalla@aig.com globalrisksolutions. Products are subject to
Simon Beynon underwriting guidelines, review and approval.
Bermuda 1.212.458.1416 • simon.beynon@aig.com Products may not be available in all jurisdictions.
This presentation does not constitute an offer to
Brian McNamara Ross Connell sell any of the insurance coverages or other
1.441.298.5229 • brian.mcnamara@aig.com 1.786.777.7590 • ross.connell@aig.com financial products described herein. The
purpose of this presentation is to provide
U.S. Asia Pacific information only and you should not take any
action in reliance on the information contained in
Bill Whitehead Rob McCabe this presentation. Whilst every effort has been
1.617.443.4630 • bill.whitehead@aig.com 61.2.9240.1874 • rob.mccabe@aig.com taken to ensure the accuracy of the information
in these pages, we make no representation and/
Captive Management – Global or warranty express or implied that the
information is correct, complete or up to date.
Robert Gagliardi Scenarios and descriptions are offered only as
1.802.419.1234 • robert.gagliardi@aig.com summaries and illustrations and these may not
include all terms, conditions and exclusions of
the products described herein. Please refer to
the final documentation for complete terms,
conditions and exclusions which may vary based
on individual requirements.
We do not provide legal, credit, tax, accounting
or other professional advice, and you and your
American International Group, Inc. (AIG) is a leading international insurance organization serving advisors should perform your own independent
customers in more than 130 countries and jurisdictions. AIG companies serve commercial, review with respect to such matters as they
institutional, and individual customers through one of the most extensive worldwide property- relate to your particular circumstances and
reach your own independent conclusions
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