AIG Using Science to Define ‘Broker Quality Index,’ Not Following Market: Benmosche

By | November 6, 2013

  • November 6, 2013 at 9:26 am
    Worker Bee says:
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    He runs this company like a life insurance business and that can not be applied to the P&C world.

    For every piece of good news that he discusses he neglects to tell the story of how he continues to tell the employees that even though you hit the targets we set for you, we are moving them again to justify why your bonus will be discounted or why you still have to work harder because you are still not that great…

    • November 8, 2013 at 10:20 am
      Don't Call Me Shirley says:
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      The guy who doesn’t even show up for work for his first couple weeks gets the credit, and those who actually develop and maintain the analytical processes are doing the work. If you move the targets, you can weasle out of giving the bonuses to those who do the actual work, while still paying huge bonuses to vineyard lizards.

  • November 6, 2013 at 1:27 pm
    Barry Rabkin says:
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    Whether using Big Data or not; predictive analytics and modeling is extremely applicable to the P&C insurance industry … and that includes modeling the quality of business brokers are sending a P&C insurer.

    • November 11, 2013 at 8:32 am
      jaybar says:
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      You’re not directly modeling the quality of business, but the expected loss costs of the business that the broker is sending to the P&C insurer. If you want to say they lower expected costs means higher quality, then fine. However, if you adequately price for the higher expected loss cost then I wouldn’t call it low quality business. And, if you underprice lower expected loss cost business, you’ve just turned “quality” business to crap business.

  • November 6, 2013 at 1:49 pm
    Dave says:
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    Are these the same kind of analytics used by their financial products unit that got them into credit default swaps?

    And his statement about: Making the point that AIG’s price increases are segmented based on an analytical process that doesn’t necessarily follow the market.

    Is laughable. 5-7% rate increases across the board whether the account needs 2% or 100%. Taht leaves them holding onto the bad accounts and losing the few well priced ones they have. I guess we’ll see how tihs all works out. But this time without a safety net as theer will never again be an AIG bailout.

  • November 7, 2013 at 9:16 am
    barb wired says:
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    for years anything said at the headquarters of AIG was questioned, has that culture changed since “hank” left town?

  • December 19, 2013 at 10:56 pm
    baffle em says:
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    The arrogance of this company is incredible. They treat those doing the work like dogs while execs are stuffing their pockets with money. Sexual harassment is tolerated and those pointing out a problem punished. They have been trying to baffle people with bs for so long they are actually starting to believe it themselves! Their market studies say everyone is over the AIG bailout and they are back stronger than ever. Really ? or is it just PR and manipulation?

  • August 4, 2016 at 11:05 am
    Ex employee says:
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    great! fast forward this 3 years to today and they are back to their old ways. what a waste this company has been! Pls shut shop and let others take over to give professional services in insurance.



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