8 - The Case of American International Group, Inc.

Abstract

This chapter presents an interview with Houghton Freeman, senior vice-president and regional manager for Far East Operations, American International Group, Inc. (AIG), in mid-August 1980 and an interview with Ned Cloonan, deputy director, International Relations and Public Affairs, AIG, held in the second week in August 1980. The chapter discusses a paper presented by Ned Cloonan at the 40th Annual Meeting of the National Academy of Management in Detroit held in August 1980 and an article written by M. R. Greenberg, president and chief executive officer of AIG, which appeared in the National Law Journal on May 21, 1979. The chapter presents an interview with Li Jiahua, deputy manager of the Research Department, People's Insurance Company of China (PICC), in Beijing in July 1980. The chapter examines the negotiations between AIG and PICC for the formation of a joint venture known as the China-American Insurance Company, which began operations in 1980. PICC was the only state-owned insurance company in China that was entitled to underwrite insurance within China. The two other insurance companies, the China Insurance Company, Ltd., and the Tai Ping Insurance Company, Ltd., were headquartered in Beijing, but they operated overseas and dealt with overseas business such as underwriting maritime insurance.