American International Group has decided to stop underwriting new policies in its individual personal insurance lines of business in Canada, namely auto and homeowners.
“We continually review our operations to make sure that AIG Canada provides clients and partners with valuable products and services,” said an AIG representative. “The individual personal insurance line of business represents a small percentage of our portfolio in Canada and based on market conditions, we have decided not to underwrite new policies in this area.”
This decision does not affect the rest of AIG Canada’s personal lines portfolio including accident & health policies, the representative said. “We will ensure all in-force policies continue to receive comprehensive policy administration and claims services.”
Commercial lines business is not affected, said the company.
An article posted in The Globe and Mail, a Toronto-based newspaper, said AIG regulatory filings show that its Canadian customers paid C$54 million (US$40.2 million) for home and car insurance in 2017, the most recent available data.
“Property insurance claims from AIG’s clients outstripped premiums by C$13 million [US$9.7 million], which would imply the division lost money, while the company took in C$8 million [US$6 million] more in car insurance premiums than it paid out in claims,” said the article titled, “AIG exits auto and home insurance in Canada amid industry shakeout.”
AIG did not independently confirm these losses.
*This story appeared previously in our sister publication Insurance Journal.