Good News Concerning AIG…as far as travel insurance goes

With all the news articles following AIG and the recent bonus fiascoes I came across an article explaining the good and the bad about the AIG government bailout. While most of the focus of the media has been on the negative aspects this article goes on to explain some of the benefits:

Here’s something that’s really startling: The entire problem at AIG was caused by one unit, the Financial Products division, whose employees constituted less than one percent of AIG’s overall workforce. AIG’s insurance units – the core of its business – essentially had nothing to do with the fiasco. But if AIG had been forced to liquidate, it could have affected the insurance units and millions of policyholders. With a more orderly process underway, the policyholders are now completely protected.

Its amazing that it was only one unit that caused all of this mess. How does this affect travel insurance? Travel Guard, and AIG subsidiary, underwrites its insurance with National Union Fire Insurance Company of Pittsburgh, PA, which is part of AIG’s Commercial Insurance Group, which are reportedly financially healthy. Recent news articles indicate that AIG is going to spin off the Commercial Insurance Group as a separate business soon to further protect it from its parent.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.