AIG one of the first in the insurance industry to offer $1 billion in coverage to rail companies

Lac-Megantic Railway Disaster insurance industry

AIG has introduced a new insurance products that is specifically designed for the rail industry Shipping crude oil via train is becoming more expensive. There are many risks associated with transporting oil in this fashion, one of the most significant of which is derailment. While train derailments are not common, they happen regularly enough to make transporting crude oil over rail a very risky endeavor. The American Insurance Group is looking to mitigate this risk by offering a new product that provides rail companies with $1 billion in coverage. Insurance…

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Reputational risk a growing concern for companies and insurers

In the advent of social media, a person’s reputation is beginning to play a much more important role in the world of business. A new trend has been born in the insurance industry in the form of reputational risk. This risk is most apparent in companies that have had their reputations damaged by some sort of incident that caused consumer backlash. Companies with bad reputations tend to fare poorly in their given industry, as consumers often steer clear of such companies. In some cases, this avoidance can mean the end…

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