Client Risk Solutions Going beyond insurance Risk solutions for Real Estate Start
Partnering to Reduce Risk Real estate owners, operators, managers and developers act vigorously to maintain profitability against a backdrop of numerous risks that can impact their business. Increased construction costs, amplified regulatory pressures, property losses from natural catastrophe and hazards and terrorism or active shooter events are just some elements that can create challenges which must be protectively managed. AIG s Client Risk Solutions (CRS) partners with our clients to lower their total cost of risk. We take a holistic approach to identify and manage complex risks through a broad range of consultative services, leading edge analytics and modeling, and an ever expanding suite of innovative technologies. Real Estate risk profile Property Large number of properties often in locations subject to natural catastrophe risks. People Diverse workforces and demanding clientele in dense population centers. Performance Operations exposed to business interruption, terrorism and cyber security risks. Market Segments REITs Private equity funds Pension funds investing in real estate Property owners and operators Real estate developers 2
Client Centric Analytics: From Insight to Response Client Risk Solutions takes businesses on a multi-stage journey through risk. From identifying and quantifying exposures to developing mitigation and response plans, CRS offers clients a continuous approach to managing risk, designed to lower their total cost of risk. Identify Business Exposures Quantify Likely Impacts Reduce Risk Effects Respond During & After Extreme Events RISK INSIGHTS CUSTOM ANALYTICS RISK MITIGATION EVENT RESPONSE Data Analysis & Exposure Summary Natural Catastrophe Supply Chain Analytics Industry Tailored Solutions: Wearable Technology & Telematics Emergency Response Planning Benchmarking Against Peers Safety Security Cost Benefit Analysis Property Risk Engineering Crisis Management Identification of Major Loss Drivers Cyber Fraud Business Continuity Planning Liability Risk Consulting Drone Inspection Services DIAGNOSTICS CONSULTANCY POST EVENT SUPPORT 3
Property Risk Solutions With large long-term physical investments that may be in geographically diverse locations, Real Estate companies are often subject to substantial risks during the building phase and long after. Client Risk Solutions provides a number of property risk engineering services designed to identify, assess and reduce these exposures. Key Risk Solutions for Real Estate Risk Assessment Identify, assess and reduce property exposures before they interrupt business activities and ensure robust business plans are in place should such an event occur. Construction Risk Identify risks associated with design deficiencies, fire protection, water damage and commissioning. Develop a program to mitigate and minimize exposures. Appraisal / Valuation Assist in evaluating adequacy of physical asset valuations to improve insurance, collateral and tax programs. Advanced Natural Catastrophe Modeling Blend of external and proprietary analyses to assess property portfolio losses for a range of perils including earthquake, windstorm and flood. Natural Catastrophe Risk Engineering Assessments Desktop exercises combined with on site surveys to identify cost effective recommendations to help reduce future risks. Success Story: Flood Risk An investment in an international real estate portfolio was at risk due to uncertain exposure from flood, specifically the lenders were concerned that a substantial number of locations were prone to flood risk. To conclude the transaction, they required outside assurance. CRS worked with the broker and client to source location data and applied AIG s proprietary flood models, augmented by risk engineering assessments, to determine a more precise view of the inherent risk. As a result, the lenders were reassured, and the transaction proceeded. 4
Client Risk Solutions Hospitality People Risk Solutions Real Estate companies require a mix of skilled and unskilled workers and must provide efficient amenities to address ever-changing client demands 24 hours a day. Workers and clients alike are prone to recurring and accidental injuries. Client Risk Solutions consultants are available to assist in the development and implementation of a range of safety and loss mitigation programs. Key Risk Solutions for Real Estate General Liability Incident investigation and management policy reviews, complaint management process evaluation, facilities review, workplace violence susceptibility assessments and security reviews. Worker Safety Risk management services, best practice assessments, training program development, ergonomic evaluations, regulatory compliance assistance and industrial hygiene services. Physical /Travel Security Assessment services to improve resiliency, life safety and physical asset protection. Terrorism Risk Assessment Assess vulnerability to terrorist & active shooter attack. Facilitate SAFETY Act designation. Client Centric Analytics Analytics, using AIG loss data, provide actionable insights to inform clients of opportunities to reduce cost of risk. Success Story: Duty of Care Security challenges surrounding mass casualty events are at the forefront of many clients minds. The liability from such an event could be ruinous to businesses and institutions. Risk managers want to know what they can do to fulfill their implicit Duty of Care. Even as growth in spending on anti-terrorism and related measures may out-pace other budgetary priorities, they want to know how to estimate returns on these investments. CRS helps to put these risks into perspective for real estate tenants and employees and explain the return. Our goal is to facilitate clients in finding cost-effective measures to make their tenants and workforce more resilient. 5
Performance Risk Solutions Real Estate companies face a broad range of risks that may impact their business performance over a long period of time. Client Risk Solutions can draw on a range of resources to help minimize disruptions that relate to cyber risk, business interruption, reputational risk and the like. Key Risk Solutions for Real Estate Business Interruption and Continuity Review and quantify distribution exposure to facilities and supply chains. Develop and test business continuity plans through scenario analysis. Cyber Security Depending on client needs, a range of services including: Assessment of client internal process, policies and infrastructure Enterprise Risk Management Facilitated workshops with executives to identify and prioritize key risks and cost/benefits of mitigation options. Success Story: Workers Compensation A logistics company sought to reduce workers compensation loss costs. CRS specialists analyzed historical losses and partnered with the client s risk management team to identify areas of improvement and establish a lost time claim frequency rate of 15%. With CRS support, the client embarked on a wide-ranging risk reduction program, including a) creating safety training videos via an AIGsponsored custom platform that staff can view on mobile devices, b) a pilot with sensor technology to mitigate ladder accidents, and c) telematics for their fleet. Early part of first year showed a 25% loss improvement, saving over $1.6M in direct loss costs. System testing and probing for vulnerabilities, from an external hacker s view Incident Simulation Workshops to pressure test current incident response protocols Executive threat briefing to C-level or Board, on latest hacker tactics and defenses 6
For more information email: CRS@aig.com American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at www.aig.com and www.aig.com/strategyupdate YouTube: www.youtube.com/aig Twitter: @AIGinsurance LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds. 2017 American International Group, Inc. All rights reserved USAL00002365 1017