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The Changing Landscape of Risk November 17, 2015 Rob Schimek CEO, - - PowerPoint PPT Presentation
The Changing Landscape of Risk November 17, 2015 Rob Schimek CEO, - - PowerPoint PPT Presentation
The Changing Landscape of Risk November 17, 2015 Rob Schimek CEO, AIG Americas Region Standing by your side for 95+ years. 3 s U.S. Treasury Yields at Near Record Lows U.S. Treasury Yield Curve 1990-2015 9% Dec 1990 8% 7% Excess
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s
Source: U.S. Department of Treasury.
Maturity
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 3 month 6 month 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year 20 Year 30 Year
U.S. Treasury Yield Curve
1990-2015
U.S. Treasury Yields at Near Record Lows
Dec 1990 Dec 2000 Dec 2010 Oct 2015 Dec 2012
Primary Claims Made Casualty
- 6%
4 Years Primary Workers’ Compensation
- 6%
6 Years Excess Occurrence Casualty
- 6%
8 Years Excess Workers’ Compensation
- 6%
16 Years Property
- 7%
1 Year = Property = Primary Claims Made Casualty = Primary Workers’ Compensation = Excess Occurrence Casualty = Excess Workers’ Compensation 5
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International Interest Rates Exhibiting Similar Patterns
Global 5 Year Government Bond Rates
1990-2015
0% 2% 4% 6% 8% 10% 12% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Japan Germany UK Canada
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One Size Does Not Fit All
ARGENTINA: ~111% COMBINED RATIO JAPAN: ~94% COMBINED RATIO U.S.: 100% COMBINED RATIO GREECE: ~80% COMBINED RATIO
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The Wide Spectrum of Insurance Solutions
1 - INNOVATION & SCIENCE 2 - Claims handling 3 - Underwriting expertise and experience 4 - Global network
$
NON TRADITIONAL (CAPITAL HEAVY)
1 - Capital heavy 2 - Cost effective 3 - Additional capacity (excess layer) 4 - Narrow focus but good contract certainty 5 - Risk transfer 5 - Loss control and engineering 6 - CAPITAL 7 - Broad risk appetite 8 - Beyond insurance…
PRODUCT CENTRIC CUSTOMER CENTRIC
Insurer
Insurer
Insurer
Insurer
Insurer
Insurer
Market Innovators
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PAST FUTURE
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INNOVATION … or EXTINCTION
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UNDERWRITERS of the 21st Century
THEN NOW
SCIENCE
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Big Data
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Drones
40,000 Drones 160,000 Drones 2015 2025
- AIG was recognized by Business Insurance with a 2015
Innovation Award for its Unmanned Aerial Vehicle product
- AIG was one of the first insurers approved by the FAA to
- perate drones for risk assessment and management
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Automated Vehicles
….2030 COMING… ….2020 ….2018
- Self-driving vehicles could eliminate 90% of U.S. auto
accidents, prevent up to $190 billion in damages and health-costs annually and save thousands of lives
- Google’s 23 autonomous cars have traveled over 1.7
million miles with 14 minor accidents. Google states no collisions were caused by its computer systems.
- The Delphi Drive, America’s first 3,400 mile cross
country-drive, was successfully completed by the Roadrunner in March 2015
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Rob Schimek
AIG CEO, Americas Region 175 Water Street New York, NY 10038 (212) 458-6080 robert.schimek@aig.com