AIG Launches a New Equity Crowdfunding Insurance Product to Protect Investors
May 24 2016 - 8:15AM
Business Wire
First policy signed with Dubai-headquartered crowdfunding
platform
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 | YouTube: www.youtube.com/aig |
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.
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American International Group, Inc.Matt Gallagher (U.S.
Media)212-458-3247matthew.gallagher2@aig.comorNicola Ratchford (U.K.
Media)+44 20 3217 1789nicola.ratchford@aig.comorLiz Werner
(Investors)212-770-7074elizabeth.werner@aig.com
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