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Whose insured with AIG? They could go bust!!

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  • 16-09-2008 9:20pm
    #1
    Run_to_da_hills
    Closed Accounts Posts: 20,009 ✭✭✭✭


    I am covered with them on a commercial policy since May, I am paying them on the drip over the year so it won't be too bad if they go belly up. If they do go under and you have forked out for the whole year in advance you could be in trouble. I wonder if these policy holders will be bailed out?

    As mentioned on another post when Independant Insurance who were the underwriters for Carole Nash went bust in 2001 it left about 30% of Irish bikers without cover.


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    #2
    Seth Brundle
    Moderators, Politics Moderators Posts: 39,822 Mod ✭✭✭✭Seth Brundle


    I renewed my insurance last week (through the AA) with them. I presume its all ok for me though as my contract is with the AA.


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    #3
    Run_to_da_hills
    Closed Accounts Posts: 20,009 ✭✭✭✭Run_to_da_hills


    kbannon wrote: »
    I renewed my insurance last week (through the AA) with them. I presume its all ok for me though as my contract is with the AA.
    I think the AA is just a broker, your underwriter would be AIG as in my case. My broker is Munster Insurances. If you are paying in installments its not too bad.


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    #4
    Seth Brundle
    Moderators, Politics Moderators Posts: 39,822 Mod ✭✭✭✭Seth Brundle


    The AA is a broker but they are whom my contract is with. I paid the AA and not AIG!


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    #5
    galwaytt
    Registered Users Posts: 12,776 ✭✭✭✭galwaytt


    kbannon wrote: »
    The AA is a broker but they are whom my contract is with. I paid the AA and not AIG!


    ....not so sure about that - they are not insurers. The Cert you have is from AIG, not the AA.

    As someone else mentioned, re: Carole Nash, at the end of the day, the broker(s) just go and find a new underwriter, so you should still be o.k. AIG, as an insurer, have to lodge a bond with authorities here, no need to panic!

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



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    #6
    matt cork
    Registered Users Posts: 123 ✭✭matt cork


    although your policy says AA, AIG are you actual insurer, AA just provide a fronting paper on behalf of AIG.

    in the event of AIG going bankrupt you would have no recourse against the AA as they do not provide you with anything other than paper

    hope that makes sense


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    #7
    VH
    Closed Accounts Posts: 690 ✭✭✭VH


    kbannon wrote: »
    The AA is a broker but they are whom my contract is with. I paid the AA and not AIG!
    true - but there might be some waiver there

    if you have enough years no claims bonus you should be able to move to another insurer pretty hassle free - i did it a few months ago - cost me about €50 in admin fees from the old insurer tho


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    #8
    Zonda999
    Registered Users Posts: 5,533 ✭✭✭Zonda999


    I'm worried on 2 fronts

    1. My mam is insured by AIG:rolleyes:

    2, More worryingly, They support Man Utd:eek::eek:


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    #9
    MugMugs
    Registered Users Posts: 17,875 ✭✭✭✭MugMugs


    Motor and Non Motor business in the UK and Ireland is relatively profitable.... I could see another insurer stepping in and buying the risk off of them in the hope that when renewal comes about, the customer stays with the Insurer. Wouldnt worry about it too much.

    I am almost certain that the Broker has to find an alternative for the client though, dont they ?


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    #10
    Green Hornet
    Closed Accounts Posts: 3,305 ✭✭✭Green Hornet


    Good question! I'm insured with AIG too but paid up front :mad: -only 2 months ago. Damn it. They had better not go belly up.


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    #11
    Bandara
    Registered Users Posts: 3,282 ✭✭✭Bandara


    They will not go bust, as the sole underwriters for the Fannie and Freddie banks in the states the US administration cannot let them go to the wall as to do so would leave over 45% of the property loans in america without insurance.

    They are still an excellent strong company, liquidity is their only issue and their requirement is approx 35 million, which in terms of the asset base they have is not a large finance requirement. The only reason they have any issues at present is the scarcity of cash flow.


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    #12
    VH
    Closed Accounts Posts: 690 ✭✭✭VH


    Hammertime wrote: »
    They are still an excellent strong company
    hold on - their share price dropped 80% IN ONE DAY and then we find Goldman Sachs and JPMorgan Chase are trying to put together a $75 BILLION loan for AIG.


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    #13
    TheBazman
    Registered Users Posts: 6,462 ✭✭✭TheBazman


    The Federal Reserve have rescued AIG by lending them $85bn. They will not, and cannot be allowed to go bust. They have over 100,000 employees with several trillion in assets. If they were to go, it would bring down many other institutions


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    #14
    [Deleted User]
    Posts: 3,621 ✭✭✭ [Deleted User]


    With their ratings recently withdrawn and the turmoil in the financials market I wouldn't be having any insurance with ****** personally.

    MODEDIT
    none AIG insurance name removed for legal reasons


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    #15
    Biro
    Closed Accounts Posts: 4,091 ✭✭✭Biro


    TheBazman wrote: »
    The Federal Reserve have rescued AIG by lending them $85bn. They will not, and cannot be allowed to go bust. They have over 100,000 employees with several trillion in assets. If they were to go, it would bring down many other institutions

    True, they're bailed out. The directors should all get jail though.


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    #16
    kaimera
    Closed Accounts Posts: 16,396 ✭✭✭✭kaimera


    TheBazman wrote: »
    The Federal Reserve have rescued AIG by lending them $85bn. They will not, and cannot be allowed to go bust. They have over 100,000 employees with several trillion in assets. If they were to go, it would bring down many other institutions
    and from the ashes one could hope some proper lessons would be learned...

    I had friends working in Lehman when they didn't get bailed out.


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    #17
    Mitch Connor
    Registered Users Posts: 45,919 ✭✭✭✭Mitch Connor


    I though Lehman got taken over by Barcleys, kinda on the back of the AIG bailout.


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    #18
    kaimera
    Closed Accounts Posts: 16,396 ✭✭✭✭kaimera


    Barclays bought some of lehmans US assets is all.

    from what I've see, that was in the works before teh AIG bailout.

    Open to correction.


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    #19
    Mitch Connor
    Registered Users Posts: 45,919 ✭✭✭✭Mitch Connor


    fair enough, I thought there was some government involvement in the Barcleys/Lehman thing and that they would only allow the barcleys/lehman deal on the back of the AIG bailout - they wouldn't refuse one and grant the other. I'm most likely wrong - i haven't paid too much attention to what is going on with them.


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    #20
    Run_to_da_hills
    Closed Accounts Posts: 20,009 ✭✭✭✭Run_to_da_hills


    THe Good news is that the US Government bailed out AIG with a loan of 82 Billion.


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    #21
    Sizzler
    Registered Users Posts: 5,430 ✭✭✭Sizzler


    I am too but I'm sure the MIF would have bailed them out here.


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    #22
    ninty9er
    Registered Users Posts: 9,366 ✭✭✭ninty9er


    Isn't the company that provides car insurance in Ireland called "AIG Europe".

    I don't see the problem. AIG mortgage payment protection in the US is the company under threat of bankruptcy.


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    #23
    matt cork
    Registered Users Posts: 123 ✭✭matt cork


    ninty9er wrote: »
    Isn't the company that provides car insurance in Ireland called "AIG Europe".

    I don't see the problem. AIG mortgage payment protection in the US is the company under threat of bankruptcy.

    that is exactly the problem, the €85bn loan will allow time to sell off their assets as opposed to a fire sale. the most profitable part of AIG is their general insurance arm, which equates to roughly 50% of their revenue. to pay the loan, plus the interest and recoup their losses, they would have to concentrate on selling the most profitable part of their business - the general insurance element

    the credit insurance arm isn't worth the paper it written on and the sale of this part of the business along with their bonds (currently 50c per $1) wouldn;t provide enough captial income

    imho the fed loan is effectively going to provide AIG enough time to liquidate the company in a controlled manner


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