Chartis: What’s in a name?

Speculation has gathered pace this week that AIG could revert back from Chartis to its original brand name.

The US insurer rebranded its general insurance business as Chartis in 2009 after the group’s near-collapse and $182bn bailout by the US Government after the 2008 financial crisis.

But this week AIG chief executive Robert Benmosche gave the strongest indication yet that the rebrand would happen, telling a Korea Society dinner that the insurer was considering being known as “just AIG”.

His remarks were supported by Chartis global commercial insurance chief executive John Doyle’s comments last month that Chartis’s international operations were “begging” to be rebranded as AIG.

Brokers, clients and employees voted in favour of the change to Chartis in 2009 when 7,000 were surveyed about whether AIU Holdings LLC needed a more distinct brand from its parent company.

But while there has been a clamour for a return to the AIG brand, UK brokers seem to be indifferent about what could prove to be another costly rebranding exercise.

Prior to 2008, AIG had built a reputation as a strong household brand and many say Chartis is still referred to as AIG. But equally there are those who argue that Chartis has started to establish a name for itself.

It’s a tough call, but whatever happens with the name, Chartis Insurance UK has bigger issues at stake after announcing up to 130 job cuts in February and its decision last week to pull its UK public sector business.

Olympics cancellation ‘could cost £3bn’

In the week of the Queen’s Diamond Jubilee, German reinsurer Munich Re has estimated that the cancellation of the Olympics due to a terrorist attack or a natural disaster would cost insurers up to $5bn (£3bn).

With the increased threat of international terrorism the UK authorities will be on their guard, while the chances of a one-off natural disaster, although they may appear slim given London’s geographical location, can’t be discounted in today’s ever-changing global environment.