AIG sees Korea as crucial market

By Kim Jae-won

American International Group (AIG) believes Korea is the right place to promote its services and products because of Koreans’ diligence and willingness to embrace new things, says local CEO Steven Barnett.

“We provide value to our colleagues in other countries,” he said. “The expectations of customers here are pretty exceptional. The challenge is going to be how we transfer that.”

Barnett’s interview with The Korea Times was his first media interview since he took the helm four years ago.

He said in no other country were insurers asked to pay claims so quickly, and such an attitude made AIG more attentive to customers, giving it an edge globally.

The British businessman said that whenever he spoke of Korea’s developed technology in the insurance business, colleagues were envious and asked him how they could do the same.

The local insurance industry has been quick to adopt technology over the past few years and also utilizing it for its key businesses.

For instance, many Korean insurance agents use tablet PCs when they meet customers, and use the devices to explain details about policies. Customers can even sign contracts on the devices, and have the documents sent directly to their e-mail address.

However, Korean insurers have always found it tough to go global even though they have high-quality information technology and experience dealing with demanding customers.

Barnett said these companies should respect diversity in local markets, a key element before advancing to foreign markets. And he unveiled one practical tip: Avoid appointing a Korean CEO to a foreign subsidiary.

“Respect local business environments. The leaders of the business of a country do not need to come from a company’s headquarters. I am one of the examples. The power of diversity is very important.”

He said power of diversity came from understanding customers’ cultures. Appointing leaders from a wide range of countries helped operators have the right people in right places.

And finally, Barnett explained how his company had weathered the global financial crisis, which had hurt it badly.

He said the secret was the power of collaboration between executives and employees.

“Collaboration and communication played a huge part,” he said. “We had open, transparent and respectful communication.”

He said another part of the story as that the company had gone back to its core, the insurance business. AIG had positioned itself to do what it does best ― insurance. Thanks to these efforts, AIG was able to pay back $182.3 billion to a bailout fund in 2012, four years after it received the money.

Barnett also said he supported Britain’s engagement with the European Union and other countries because the U.K. is an island, so being isolated is not a good situation.