American International Group Inc.
Moat Score — American International Group Inc.
Total Moat Score
9 / 30
| Moat Factor | Score | Analysis |
|---|---|---|
| Intangible Assets Patents, trademarks, brand strength, or regulatory licenses that protect a company's products or services from being freely copied by competitors. | 2 / 5 | AIG's century-old global brand and specialty underwriting expertise carry real value, but its legacy from the 2008 bailout and a history of reserve issues have left it less trusted than top-tier peers like Chubb. |
| Cost Advantage A durable ability to produce goods or services more cheaply than competitors — through scale, unique access to cheap inputs, location, or process — that lets a company undercut rivals or out-earn them at the same price. | 1 / 5 | AIG has historically run a higher (worse) combined ratio and expense ratio than best-in-class competitors such as Chubb and Travelers, indicating it lacks a structural cost advantage despite its scale. |
| Pricing Power The ability to raise prices without losing meaningful business, because the product or service is differentiated, mission-critical, or has few good substitutes. | 2 / 5 | Commercial and specialty insurance pricing is cyclical and highly competitive, and AIG has limited ability to hold pricing power as the broader commercial market cycle softens. |
| Network Effect The product or service becomes more valuable to every user as more people or organizations use it, making an established leader harder to displace. | 0 / 5 | Insurance underwriting does not become more valuable to a policyholder as more other people buy coverage from AIG, so there is no network effect. |
| Switching Costs The money, time, or operational disruption a customer would face switching to a competitor, which locks in existing customers and supports renewals. | 2 / 5 | Commercial insurance relationships involve broker-mediated renewals and program continuity that create modest stickiness, but large accounts are routinely re-bid competitively at renewal. |
| Efficient Scale A market that can only profitably support a small number of players, so incumbents face limited threat from new entrants even without other defenses. | 2 / 5 | The global commercial and specialty insurance market includes several large, well-capitalized competitors (Chubb, Zurich, Allianz, AXA, Travelers), so it is not a market efficiently served by only a handful of firms. |