AIG launched a new risk-reduction service for wealthy clients in Canada whose high-priced homes are under construction.
The mega-property-casualty insurer said that its AIG Insurance Company of Canada division has started offering Smart Build, a risk management and mitigation service for residential construction projects with budgets of $5 million or more. AIG’s Private Client Group clients are the beneficiaries of the new program.
How it works: AIG Private Client Group’s risk managers will work with a client’s architect and builder to figure out ways together to mitigate residential construction-related risks. The idea is that the program could help minimize risks related to natural catastrophe, security, fire and life safety. AIG also wants to reduce threats to fine art or other collections, as well as various luxury home vulnerabilities.
“Smart Build allows AIG to work with the policyholders, their contractors, architects and other building professionals in order to collaborate, make recommendations, and mitigate risks right from the project’s inception,” Autumn Kerr, manager of risk management services for AIG Private Client Group, said in prepared remarks. “Many homeowners who are building or reconstructing a home do not bring in their insurance company until after a project is complete, and unfortunately, we have seen that things often do go wrong.”
AIG notes that water damage is rapidly becoming “one of the most common causes of homeowner insurance claims in Canada.”
The high-net-worth space is one of increased interest to insurers. Among competitors in the space: PURE, or the Privilege Underwriters Reciprocal Exchange, a policyholder-owned property/casualty insurer focused on high-net-worth individuals and families. Recently, PURE’s parent, the PURE Group of Insurance Companies hired executives from Chubb and AIG to fill out its executive roster.
Novarica, meanwhile, recently issued recommendations as to how insurers could pursue ultra-high-value clients. Among its tips: Carriers should enhance customer service and create customized workflows to fulfill the unique needs of the segment, which typically has more than $50 million in investible assets.