Case Study

AIG: One Global Claims Process Specialized by Country

The Business Issue

AIG insures risk around the world, selling more than 90 types of insurance products in over 100 countries, in 400 offices, and 40 languages. AIG had a big global presence, but lacked scale. As Eric Martinez explains, it’s hard to get scale when each country wants to do its own thing.

AIG had silos – 91 to be exact – and no common backbone. The company set out to simplify its systems, taking the complexity out and bringing more responsiveness in, while allowing the products to remain as “local” as possible to each country.

The Solution

The first Pega-based system that AIG built and launched was the layer cake OneClaim™ system. On top of the Pega backbone, there are 3 critical components:

  • A global layer
  • A regional layer (specific to the area)
  • A country layer (specific language, regulations) – governance must be tighter here

The OneClaim™ system has been successfully rolled out onto three continents and now AIG is building even more systems on the same Pega backbone, using the layer cake concept.

The Results

  • Improved combined ratio
  • Improved outcomes for all lines of business
  • 20-30% reduction in cycle times for higher frequency claims
  • Straight-through processing for high frequency, low complexity claims
  • One global system that meets local requirements
  • Insurance
  • Operations
Emerging from the global financial crisis, AIG is a leaner, stronger and more agile organization than ever before. | 35:40

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