AIG offers new risk financing plan for smaller firms
AIG has a new risk financing option for U.S. companies with large deductible casualty insurance programs.
Collateral Flex Option (CFO) is “a flexible alternative for companies that would otherwise need to tie up capital or maintain costly lines of credit to meet the collateral requirements that come with large deductible policies,” according to AIG.
Those companies that might need it most include smaller firms that may have yet to earn an investment-grade rating.
CFO can be used by qualifying clients to defer collateral requirements by as much as 50% annually on policies requiring large deductibles like workers compensation, general liability and commercial automobile liability. Annual amounts deferred through CFO for all periods of the company’s insurance program may range from $500,000 to $5 million.
XL ShipShape line covers high-end yachts, boats
XL Group’s North America Marine insurance segment recently announced a new product line, called ShipShape, aimed at yacht and other high-value boat owners.
The Dublin, Ireland-based insurer said the new product line offers high-end vessel owners limits up to $50 million. The line covers liability, extending to paid crew, and include coverage under the Jones Act, General Maritime Law and the Death on the High Seas Act.
The new XL policies also address defense costs outside the liability limit, medical payments to crewmembers, broad navigational limits and veterinary treatment for pets. The company states there are more than 30 coverage options available through its new line.
XL Group has 40 years of marine underwriting experience, according to Rick Salway, ShipShape team vice president.
New property-casualty products: AIG risk financing, XL Group yacht via IFAwebnews .
