First policy signed with Dubai-headquartered crowdfunding platform
NEW YORK--(BUSINESS WIRE)--May 24, 2016--
American International Group, Inc. (NYSE:AIG) has launched a new product
for the fast-growing global crowdfunding investment industry. This is
the first new insurance product developed specifically to protect
investors on equity crowdfunding platforms against issuer fraud.
Crowdfunding platforms enable innovators to bring their ideas to life
and also give retail investors the opportunity to provide capital for
start-ups and growth stage companies around the world. Historically,
only high net worth individuals and institutional investors such as
venture capital funds and private equity firms were offered these
opportunities.
“As a sector still in its infancy, equity crowdfunding platforms are
only as strong as the confidence they instill in their investors,” said
Lex Baugh, President of Liability and Financial Lines. “This new product
will help provide that confidence and help to support this asset class
as it matures.”
Crowdfunding Fidelity protects individual investors against the
theft of issuer assets by issuer directors, officers, or general
employees which cause a direct loss to the individual investor.
By subscribing to this innovative new product, crowdfunding platforms
will enhance the value they can offer investors by offering protection
against issuer fraud. Although there have been limited instances of
fraud in this sector so far, this new product helps to build investor
trust in this emerging sector by working closely with the platforms to
ensure underlying issuer trustworthiness.
The coverage is currently available to platforms in the UK and Canada.
As other countries finalize regulations for companies to raise capital,
this policy can be customized to local needs of equity-based
crowdfunding platforms.
Eureeca, an equity crowdfunding platform registered in the UK and based
in Dubai, is the first platform to purchase the coverage and make this
protection against issuer fraud available to investors. AIG engaged with
Eureeca to gain a deeper understanding of the industry’s risk exposures,
ensuring that the product was designed specifically to address these
needs. Eureeca launched in 2013 and focuses on providing deals from the
Middle East, Europe, and Southeast Asia.
“Crowdfunding Fidelity is a great example of how AIG learns
together with the industries and clients it serves to better meet their
strategic needs. We are looking forward to building similar
relationships with other platforms across the world and to expanding our
offering to this sector,” said Mr. Baugh.
Chris Thomas, Co-Chief Executive Officer and Founder of Eureeca said,
“The new power of the crowd and the desire to democratize investing
throughout the world can unleash great partnerships. The success of the
ecosystem depends on collaboration between all stakeholders. AIG has
demonstrated its commitment to being a valued insurer to this new
industry by engaging the crowdfunding space at such an early stage.”
# # #
American International Group, Inc. (AIG) is a leading global insurance
organization. Founded in 1919, today we provide a wide range of property
casualty insurance, life insurance, retirement products, mortgage
insurance and other financial services to customers in more than 100
countries and jurisdictions. Our 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
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| Twitter: @AIGinsurance | LinkedIn: http://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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160524005941/en/
Source: American International Group, Inc.
American International Group, Inc.
Matt Gallagher (U.S. Media)
212-458-3247
matthew.gallagher2@aig.com
or
Nicola
Ratchford (U.K. Media)
+44 20 3217 1789
nicola.ratchford@aig.com
or
Liz
Werner (Investors)
212-770-7074
elizabeth.werner@aig.com