AIG to Offer Banks ‘Commercial Umbrella’ Endorsement for Basel II

AIG Excess Casualty ®, a unit of AIG Commercial Insurance, announced that it is offering an endorsement to its commercial umbrella policy to help U.S. banks operating overseas meet Basel II requirements.

“Basel II, the second of the Basel Accords issued by the Basel Committee on Banking Supervision, created an international standard for banks, which requires specific capital and risk management practices to protect against operational risks,” AIG explained.

The announcement said the “new endorsement allows a financial institution classified as a Consolidated Supervised Entity (CSE) using the Alternative Measurement Approach (AMA) to purchase insurance as a partial offset to their capital requirements for operational risk. The endorsement is structured to meet the Basel II insurance protocols, including an extended policy period and appropriate cancellation provisions. Insureds taking advantage of this new endorsement also benefit from the unparalleled crisis management, underwriting and claims resources of AIG Excess Casualty.”

AIG Excess Casualty President Tim McAuliffe stated: “The new endorsement to our commercial umbrella policy was created specifically for U.S.-based banks operating overseas. These banks are obliged or incentivized to meet the Basel II Accord, and we are proud to be a market of choice in helping them accomplish this objective. The new Basel II endorsement is yet another example of AIG Excess Casualty’s flexibility and ability to quickly respond to our clients’ needs.”

Further information may be obtained by e-mail at: excess.casualty@aig.com.

Source: AIG Commercial Insurance – www.aig.com