New AIG Division Is Targeting High-Net-Worth Policyholders.

The growth in wealth worldwide has exposed high-net-worth individuals to risk that extends beyond traditional insurance coverage, according to American International Group Inc. So, AIG recently created the AIG Private Client Group, which offers customized risk-management solutions to the wealthy.

AIG hired Ross J. Buchmueller as president of the group. Buchmueller previously worked at Chubb & Son Inc., where he launched the company's personal-lines business in Europe. Chubb has dominated the high-net-worth property/casualty personal-lines market, insuring the majority of U.S. homes worth more than $5 million.

The AIG Private Client Group insurance products offer more than traditional coverages. Its auto insurance program allows policyholders to choose their own auto repair facility and the use of original replacement parts. The homeowners policy offers all-risks coverage, including guaranteed replacement costs for home and contents. Policyholders may receive cash for a loss without any obligation to replace the lost items. The policy is designed for homes with replacement parts of $1 million or more.

Wealthy homeowners can have their private collections of art, jewelry and other fine collectibles covered, and the policy automatically extends to newly acquired items. Meeting the needs of this lifestyle, AIG also can access kidnap and ransom, aviation and watercraft coverage, as well as insurance for homes, cars and personal exposures worldwide.

The AIG Private Client Group also offers risk-management services, which include home valuation, security, engineering and loss-control services. AIG also offers access to art collection management and pre-employment background checks on domestic staff.