Posted On: December 13, 2008, 7:57 am CST

Posted By: A I Gone

Virtually everyone in an agency or company that competes against AIG can give concrete examples of accounts that AIG priced below the competition in the last 90 days. Yes, they are protecting their renewals with pricing well below the market, but even worse, they are pricing new business well below common sense pricing. They win very little of this business. They just force the incumbent agent to convince the incumbent carrier or a new carrier to price the business at close to the same level as AIG and then sell their client on why it wouldn't be prudent to go with AIG. So AIG starts the death spiral with ridiculous pricing void of any actuarial validity and the lemmings in the market follow to protect their in force book. It's a beautiful thing. This should hastent the next hard market in a time when our economy cannot handle it. Historians, at least insurance historians, will look at the AIG debacle of 2008 as one of the triggers that led to the fall of capitalism as we knew it. I start Chinese lessons tomorrow. I want to be able to say "yes sir" in the language of the new owners of our country.