Does London Mean Security?

Here in Orlando, where thousands are gathered for the RIMS conference, the weather is perfect. At a reception I attended, however, the subject quickly turned away from the weather to the economy.

When I expressed some surprise that overall rates are still as flat as they are—and are only projected to start firming in the distant fourth quarter—eyebrows were raised.

There’s a reason for that, they said, spelled with three letters: A-I-G. AIG is undercutting other insurers by more than 10 percent and AIG employees are under considerable pressure to hold onto their clients. One person said AIG is offering further incentives to keep its existing clients

This is no surprise. With its infusion of cash, AIG can afford to be extra competitive. While risk managers say they are keeping some business with AIG, they are savvy and also under pressure from their skittish boards. And so they also are spreading their risks with other insurers.

What’s more, risk managers I’ve talked in the past said they are traveling to London for the first time to shop, because they feel it is a financially secure market--something their board will understand.

My question to buyers: are you shopping the London market? And have your rates been cut by AIG?