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AIG CEO says AI data centers are maxing out P&C coverage limits
Andersen said AI buildouts expand demand across construction, cyber, property and liability, while also straining the property and casualty limits insurers need.
American International Group CEO Eric Andersen said the artificial intelligence data center buildout is creating both an opportunity and capacity pressure for the property and casualty insurance industry. Speaking on Bloomberg TV, Andersen said the projects require coverage across the full lifecycle, from project finance through operations, including construction risk, cyber exposure, property coverage, and liability coverage.
Andersen said AIG can participate across those segments because it offers products spanning construction-related, technology-related, and other risk areas. Still, he said the surge in demand for insurance linked to data center construction is “maxing out” the limits P&C insurers must provide.
The comments follow guidance from S&P Global Ratings that the rising need for data center linked coverage is a growth opportunity for insurers. Andersen also said AIG is involved in multiple stages of the construction process and provides insurance to power providers.
AIG’s CEO remarks came after the company reported second-quarter results that beat Wall Street expectations, roughly two months after Andersen took over as chief executive. The story notes that through Monday, AIG shares were down 9.3% year-to-date, while the KBW Insurance Index was up 8.9%.