The market has been buzzing about AIG's commercial insurersallegedly underpricing their coverage beyond all sound judgment toovercome the reputational damage done by their corporate parent'sfederal bailout. But two government representatives gave thecarrier aclean bill of health of sorts, chalking up any premiumdeclines to old-fashioned competition. Did they miss the boat?

NU's Washington Editor, Dave Postal, reported in ourMarch 23editionthat “thereis no evidence American International Group is engaged in predatorypricing of its property-casualty business, the U.S. GovernmentAccountability Office and Pennsylvaniasinsurance commissioner told Congress.”

State insurance regulators, insurance brokers and insurancebuyers said that while AIG may be pricing somewhat moreaggressively than in the past in order to retain business in lightof damage to the parent companys reputation, they did not seeindications that this pricing was inadequate or out of line withprevious AIG pricing practices,Orice Williams, director of the GAOsfinancial markets and community investment unit, testified beforeCongress.