Case Study

Case Study No. 1

Title: AIG's e-business Risk Insurance Solutions

Authors: Ty R. Sagalow and Robert W. Hammesfahr

Date: 2005

Category: Software Development

Keywords: E-business Risk Solutions and Security Risk Management

Source: http://www.icmrindia.org/casestudies/catalogue/Insurance/INS053.htm

Content:

In January 2000, the American International Group, Inc. (AIG), global market leader in insurance and financial services, launched the AIG e-business Risk Solutions (AIG eBRS) exclusively to address the risks associated with online businesses, popularly known as e-business or e-commerce. The company's insurance business has traditionally offered a wide range of general and life insurance products to its customers spread across the world. Responding to the extensive and ever increasing use of the Internet by corporates to conduct online business, AIG has broadened the portfolio of its insurance product offerings by introducing a series of comprehensive liability coverages for companies conducting business on the Internet.

AIG eBRS offered a comprehensive suite of products and services combining insurance, information services and technology that would support e-business at its most sensitive touch points, namely, network security, trade credit, identity and credit card fraud. AIG covered claims arising from the errors or deficiency in service provided by the insured company due to security problems and fraud, which might cause any harm, loss or dissatisfaction to service recipients. Insurance cover was also provided against unknown viruses, unauthorized use or access of systems, allegations of infringement of copy rights and trademarks, libel or slander resulting from media services such as website design or hosting.

The case explains how AIG eBRS made the e-insurance policies flexible and brought down their costs through technological alliances, thus facilitating even small and medium size companies to avail such insurance. It describes the...