Edge emerged from a joint effort between a Canadian Underwriting team with deep knowledge of local markets, and Legal and Claims groups working out of New York and Toronto.
“Our goal is to deliver innovative products that position our clients and partners well to take advantage of tomorrow’s opportunities,” states Robert Yellen, Chief Underwriting Officer, U.S. and Canada Financial Lines. “With the next hot Canadian IPO market just around the corner, Prospectus Edge delivers a new tool to help manage the exposures future leaders face as they pursue that opportunity.”
In the Risk Financing category, Lexington’s Parity product provides coverage to organizations that may incur losses and liabilities when they hire a technology contractor. While contracts with such companies increasingly limit the vendor’s liability for an organization’s lost profits and consequential damages, the insurance market has until now failed to provide a solution for the hiring organization.
Parity fills that gap. If, for instance, a hospital attempting to comply with federal regulations hires an IT firm to install electronic medical records systems, Parity would provide coverage for the hospital in the event that the outside contractor fails in its obligations and the hospital must repay government subsidies.
The idea for Parity emerged from discussions between Lexington and a healthcare advisory board that showed concern about potential losses from outsourced technology work. Lexington recognized the huge gaps in available coverage and realized the opportunity for this innovative product.
Explains John Parente, Chief Innovation Officer for Lexington, “As companies become more and more reliant on technology, the number of these large IT contracts – and the degree of liability that goes with them – will only increase. The fact that Parity exists proves that AIG listens to its customers and is willing to take a fresh approach to underwriting, designing a product that solves a perplexing and persistent gap in the marketplace. It takes a high degree of expertise to execute on this level and bring new products to market very quickly, and fortunately our team has that ability.”
Both Prospectus Edge and Parity highlight AIG’s strength as an innovator. Says Matt Power, Chief Innovation and Strategic Relationship Officer for the Americas, “Innovation has been part of our corporate culture going back to AIG’s founding. As industries evolve, our services must change in tandem. Both Prospectus Edge and Parity are first-class examples of AIG identifying a gap in the market and designing an innovative product that solves the problem ahead of our competition. We are honored that Business Insurance has recognized the results of that forward-thinking culture for the fourth consecutive year.”
“Both Prospectus Edge and Parity are first-class examples of AIG identifying a gap in the market and designing an innovative product that solves the problem ahead of our competition.”– Matt Power, Chief Innovation and Strategic Relationship Officer, Americas, AIG