American International Group (AIG) has introduced its new risk financing solution, Collateral Flex Option (CFO), for firms with large deductible casualty insurance programs in the US.
The new technology offers a flexible option for firms that would otherwise need to tie up capital or maintain costly lines of credit to meet the collateral requirements for large deductible policies.
Available for qualified AIG clients, CFO offers a way of deferring collateral requirements by up to 50% on large deductible workers compensation, general liability, and commercial automobile liability insurance policies, on an annual basis.
The insurer said that annual CFO amounts deferred for all policy periods of the company's insurance program with AIG can range from $500,000 to $5,000,000. It is subject to a limit of 50% of the insured's total annual collateral posting requirement.
AIG US Primary Casualty senior vice president and product line officer Joseph Davide said, "CFO is an innovative risk management finance solution for customers who want to put more of their capital at work for their business."
Operating in more than 130 countries and regions, AIG provides an array of insurance products and services such as property-casualty as well as life insurance and retirement.
