Major brokers in Australia agree the AIG crisis is prompting larger businesses to want more than one insurer involved when they place business.

Marsh Pacific Region CEO David Bidmead told an industry conference last week that clients appear to be moving away from placing insurance with only one or a few carriers.

“Customers are… syndicating their risk to a broader panel of insurers to achieve greater economic and geographic spread,” he said.

Marsh Australia GM Placement Services Scott Leney says the trend is becoming more obvious in the local market.

“A couple of clients decided to bring more underwriters on the panel,” he told insuranceNEWS.com.au. “But it’s early days, and it’s not right across the book.”

Aon GM Market Services Ross Castle agrees. “Where clients have been heavily committed to a number of select insurers there is new interest in spreading the risk to avoid being overcommitted to any particular market or territory,” he said.

Mr Leney says AIG Australia has retained most of its clients “due to sound communication and its apparent financial strength”.

But clients are looking at syndication “first of all as a general hedge on the uncertainty of AIG”.

“At the same time, given the overall frailty of the financial world, a syndicate will allow them to spread their exposure.”