Presented by

Kaushal Kumar, Era Barrow, Upasana Agarwal, Lena Projestha, Sarath P.

It was established in 1919 at Shanghai in China. Earlier it was known as American Asiatic Underwriters (AAU). In 1926, it entered the US with new name called American International Underwriters (AIU). European war was the cause to became major player in the insurance market. AIU acquired a majority stake in the Globe & Rutgers Fire Insurance Company and its subsidiaries too.

Mr. Greenberg was elected as the president of AIU In 1970s it became a leading global insurance organization. By the late 1980s, AIG became renowned throughout the world for its innovative strategies and market leadership. AIG operated in four main business segments, namely, domestic & foreign general insurance, domestic & foreign life insurance, financial services and retirement services & asset management.

E-Business (electronic business) is, in its simplest form, the conduct of business on the Internet. It is a more generic term than e-Commerce because it refers to not only buying and selling but also servicing customers and collaborating with business partners.

Internet facilitate to connect from anywhere, to anyone, at any time create risk that cause huge financial losses. It is a potential target of hackers. Enormous financial losses if confidential information fell into competitors hands. Threat of law suites from customers on the grounds of invasion of privacy due to loss of private info relating to their income and expenses.

Hackers sends viruses and corrupts, deletes or alter the data or shut down or lock the system by changing the password. Hacker could break into the companys website, place some information there and then accuse the company of having utilized and published other peoples copyrighted material. IT risk was the most unpredictable, challenging to understand, manage and most expensive for the corporate. No problem, I have an insurance

The corporate generally adopted security measures such as firewalls, intrusion detection systems and anti-virus software. As information and communication technologies changed at an extremely rapid pace, each new technology brought with it new risks. Hackers were always a step ahead of the corporate and it became extremely difficult, if not possible, for them to install full-proof data protection systems. Launches a denial of service attack which makes it impossible to sell product over the companys website.

$706,000 $76,000 $2,754,400 $5,148,500

$10,166,400
$701,500 finacial fruad telecom fraud

$65,643,300

theft of proprietary info. $70,105,900

virus
laptop theft insider net abuse denial of service sabotage

$27,382,340

system penetration telecom eavesdropping

$11,767,200 $6,830,500

active wiretapping

We recognized that the internet would have a dramatic impact on the lives of our customers and the risks faced We needed to respond.. The new division was necessary because we recognized that these risks were fundamentally different, and they wouldnt fit easily into our current product group.

AIG e-Business Risk Solution was launched in January 2000. It is exclusively to address the risks associated with online business. It has broadened the portfolio of its insurance product offering by introducing a series of comprehensive liability coverage for companies conducting business on the internet. It covered claims arising from the errors or deficiency in service which might cause and harm, loss, or dissatisfaction to service recipients.

Insurance cover was also provided against unknown viruses, unauthorized use or access of systems, allegations of infringement of copy rights and trademarks.

It is online and offline both. Before submitting the application, weather online or offline, the applicants were required to undergo a through security-risk assessment. A feedback report is provided by company on the state of its network security. The report s are explaining the security weaknesses and suggesting the solutions.

It is very expensive, at least 25% higher than those of traditional insurance. It was not very popular even among the big companies. They trusted their own IT department.

Reason for high e-insurance costs was the cost of network security risk assessment tests.
These tests had to be taken more than once. It caused further increased the financial burden.

It was not always possible to determine the source of computer attack and the geographical area that got affected.

Tie-up with technological alliance with Unisys and developed a shared-risk business model. They also developed a business process methodology that included both a web-based security assessment tool and onsite assessment. The risk assessment report was provided to the applicants free of cost whether or not they bought the insurance. It offered to provide security assessment of the clients overall system on an annual basis.

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Corporate all over the world have accepted the need to protect their businesses against cyber risks. High risk entities like financial and energy companies are proactively opting for e-insurance. Mandatory for financial institutions and healthcare companies to take compulsory e-insurance protection.

Insurance company should terrorism and cyber terrorism coverage. E-insurance coverage as an important perquisite for almost all firms using the internet for information, communication and online transactions. As in the developed countries, govt. of developing countries should implement it as mandatory for certain types of firms.