Overview & Objectives
Purpose
Assess AIG’s marketing mix through the lens of portfolio structure and risk-based pricing
Identify levers to improve profitability, growth, and retention across segments
Core assumptions
Insurance value is driven by underwriting discipline, distribution quality, and claims performance
Pricing must balance competitiveness with adequate risk-adjusted returns
Product (Insurance Portfolio Strategy)
Portfolio architecture
Personal lines
Auto, homeowners, renters, umbrella (where applicable by market)
Bundling opportunities and household risk aggregation
Commercial lines
SME packages (property, liability, workers’ comp where offered)
Middle-market and large commercial programs
Specialty lines
Cyber, professional liability (E&O/D&O), marine, aviation, energy, fine art, political risk
High-severity/low-frequency risk products with strong underwriting controls
Life/accident & health (if in scope by region/entity)
Credit life, group accident, supplemental health products
Reinsurance/alternative risk
Facultative/treated reinsurance relationships
Captives, risk retention groups, parametric solutions (where applicable)
A structured multi-line portfolio balances volume lines with specialty and risk-transfer solutions to manage volatility and growth.
Product design considerations supporting risk-based pricing
Coverage modularity
Optional endorsements tied to exposure (e.g., cyber incident response, business interruption extensions)
Policy terms and conditions
Limits, sublimits, deductibles/retentions aligned to risk appetite
Risk mitigation add-ons
Loss control services, cybersecurity assessments, IoT monitoring for property
Claims experience feedback loop
Continuous refinement of coverage wording based on emerging loss drivers
Differentiation & value proposition
Financial strength and claims-paying reputation
Expertise in complex risks and specialty underwriting
Risk engineering and advisory services as part of the “product”
Product lifecycle management
New product incubation for emerging risks (cyber, climate, supply chain)
Portfolio pruning
Exit or re-underwrite underperforming classes, geographies, or channels
Cross-sell and upsell pathways
Identify adjacent needs based on account exposure mapping
Price (Risk-Based Pricing & Profitability)
Pricing strategy goals
Achieve target combined ratio and risk-adjusted return on capital (RAROC)
Maintain competitive positioning in attractive segments
Reduce adverse selection and improve portfolio quality
Risk-based pricing framework
Risk segmentation
Industry/class codes, geography, asset characteristics, controls, prior losses
Underwriting inputs
Exposure measures (payroll, revenue, TIV, vehicle miles, headcount)
Hazard indicators (construction type, occupancy, catastrophe zones)
Actuarial models
Frequency/severity modeling
Credibility theory and experience rating (where applicable)
Catastrophe modeling for nat-cat perils
Rating plan structure
Base rate + relativities (territory, class, limit, deductible)
Schedule rating and underwriting judgment guardrails
Risk loadings and capital considerations
Cost of capital, reinsurance costs, tail risk load
Inflation, social inflation, litigation trends
Portfolio-based pricing controls
Risk appetite and capacity allocation
Limit deployment by class/region to manage accumulation
Price adequacy monitoring
Rate change vs. loss trend tracking
New business vs. renewal adequacy comparisons
Underwriting governance
Authority levels, referrals, peer review for large/complex risks
Customer price architecture
Deductible/retention optimization
Offer deductible ladders to match risk tolerance and improve loss ratio
Payment options and financing
Monthly/annual plans; premium financing partnerships
Bundling and multi-policy discounts (where permitted)
Encourage retention while maintaining risk adequacy
Competitive and regulatory constraints
Rate filing requirements (where regulated)
Market cycle dynamics
Hard/soft market adjustments and discipline to avoid underpricing
Place (Distribution & Channel Strategy)
Channel mix
Brokers (wholesale and retail)
Dominant for commercial and specialty; relationship management critical
Agents (independent/captive where applicable)
Personal lines and SME penetration
Direct / digital platforms
Quote-bind-issue for simpler risks; lead generation for complex risks
Partnerships and embedded insurance
Affinity groups, OEMs, fintechs, travel platforms, gig platforms
MGA/MGU and delegated authority
Expand reach while enforcing underwriting controls and auditability
Channel alignment to portfolio and pricing
Channel-specific risk appetite
Different products and underwriting strictness by channel
Broker incentives and placement behavior
Manage commission structures to reduce adverse selection
Data exchange and workflow integration
API connectivity, e-signature, real-time underwriting triage
Geographic and segment coverage
Targeted deployment by region based on catastrophe exposure and growth potential
Industry vertical focus for specialty expertise (tech, healthcare, energy, construction)
Service and operating model as “place”
Underwriting response times (SLA) to win in broker markets
Claims network accessibility and specialized adjusters
Promotion (Go-to-Market & Messaging)
Positioning and brand themes
Expertise in complex risk and strong claims capability
Risk engineering and prevention as differentiators
Stability and long-term partnership for enterprises
Segment-specific messaging
Personal lines
Peace of mind, simplicity, multi-policy value, digital convenience
SME
“Right-sized” protection, fast quotes, clear coverage explanations
Large commercial/specialty
Tailored solutions, analytics-driven underwriting, global capabilities
Cyber
End-to-end resilience: prevention + response + coverage
Demand generation tactics
Broker enablement
Co-marketing, thought leadership, underwriting guides, appetite directories
Content marketing
Risk insights reports (cyber trends, climate impacts, industry benchmarks)
Events and industry conferences
Vertical-specific sponsorships and speaking engagements
Account-based marketing (ABM)
Target high-value corporate accounts with tailored risk narratives
PR and reputation management
Claims stories (where appropriate), resilience initiatives
Sales enablement and tools
Interactive quoting tools and coverage comparison aids
ROI messaging for risk mitigation services
Case studies demonstrating loss reduction and rapid claims resolution
Retention and loyalty programs
Renewal outreach campaigns based on risk improvement milestones
Customer education on loss prevention and policy updates
People (Talent & Expertise)
Underwriting and actuarial capabilities
Specialized underwriters by line and industry
Actuarial pricing teams to maintain model governance and calibration
Claims and service teams
Complex claims specialists (cyber, casualty, marine, property CAT)
Customer success/relationship managers for large accounts
Distribution relationship management
Broker managers with performance-based account plans
Training for agents/partners on appetite and submission quality
Culture and governance
Risk discipline and escalation pathways
Continuous learning on emerging risks and regulations
Process (Underwriting, Pricing, Claims, and Feedback Loops)
Underwriting workflow
Submission triage and risk scoring
Automated rules for low-complexity risks; referral for complex accounts
Documentation standards and decision audit trails
Pricing process
Model governance
Validation, bias testing, drift monitoring, change management
Renewal repricing cadence
Incorporate new loss data, trend updates, and exposure changes
Claims process
FNOL (first notice of loss) digital intake and routing
Severity triage and litigation management
Recovery (subrogation) and fraud detection
Risk management process
Accumulation management (cat zones, industry concentration)
Reinsurance strategy integration into pricing and capacity decisions
Closed-loop improvement
Claims-to-underwriting insights
Post-loss reviews and policy wording refinements
Customer risk improvement tracking influencing renewal terms
Physical Evidence (Trust Signals in Insurance)
Proof points for buyers and brokers
Financial ratings and stability indicators
Claims service metrics (cycle time, NPS, dispute rates)
Certifications and compliance standards (e.g., cyber security practices where relevant)
Documentation and experience artifacts
Clear policy documents and coverage summaries
Risk engineering reports and recommendations
Digital portals for policy/claims status visibility
Analytics & Data (Enablers for Portfolio + Pricing)
Data sources
Internal: loss history, exposure, claims notes, broker performance
External: catastrophe models, credit/telematics (where permitted), threat intel for cyber
Economic and legal environment indicators (inflation, court trends)
Key models and tools
Predictive underwriting and pricing models
Fraud detection and claims severity prediction
Customer lifetime value (CLV) and churn prediction
KPIs and measurement
Profitability: combined ratio, loss ratio, expense ratio
Growth: GWP/NWP, new business hit ratio, submission-to-bind
Retention: renewal rate, rate sensitivity, coverage churn
Portfolio health: concentration, accumulation, mix shifts
Pricing adequacy: indicated vs. achieved rate, rate on line
Strategic Risks & Mitigations (Specific to Risk-Based Pricing)
Adverse selection
Mitigation: tighter segmentation, improved data, broker submission quality controls
Model risk and fairness
Mitigation: governance, explainability, compliance reviews, bias monitoring
Catastrophe exposure and climate volatility
Mitigation: accumulation controls, reinsurance optimization, parametric options
Regulatory and reputational risk
Mitigation: transparent pricing rationale, strong complaint handling, clear disclosures
Competitive pricing pressure
Mitigation: emphasize value services, disciplined underwriting, differentiated products
Opportunities & Recommendations
Portfolio optimization
Expand in segments with strong risk-adjusted returns and manageable accumulation
Reduce exposure in underperforming classes; tighten terms or raise retentions
Pricing enhancements
Increase granularity of segmentation using validated data sources
Improve renewal personalization: risk-improvement credits tied to measurable actions
Distribution improvements
Strengthen broker/partner analytics to prioritize profitable placements
Expand delegated authority with robust audit and controls for targeted niches
Promotion and positioning
Lead with risk engineering + claims excellence to justify premium adequacy
Thought leadership on emerging risks to pull demand in specialty lines
Operating model
Invest in straight-through processing for simpler risks to lower expense ratio
Enhance claims triage and litigation management to control severity trends
Wondershare EdrawMind
