On the hunt for enhanced operational efficiency, American International Group (AIG) is to create a new group benefits operation in the US through the merger of the group benefits units of its core US life business, American General Life Companies (American General), and its general insurance business, Chartis US Accident and Health.
The combined operation is to be named AIG Benefit Solutions.
According to AIG, AIG Benefit Solutions will offer about 24 insurance products and programmes, many available on both employer-funded and voluntary, employee-paid platforms, as well as underwriting, enrolment and plan administration.
Commenting on the merger, president and CEO of AIG Benefit Solutions Curtis W Olson said in a statement: “Through this joint venture, we will not only create a new and stronger benefits division, we are positioned to become a major player in the benefits market.”
Products and services will be offered through two business segments: US Employee Benefits, which will offer group and individual employee benefits, and US Affinity Benefits, which will offer products and services to affinity groups.
Affinity groups span a wide range of organisations such as religious groups, alumni groups and unions which club together to obtain cheaper insurance cover for the members.