vol. XVII no. 3

				Page 4 Page 1 2 3 4 5 6 AIG AIG is celebrating its 10th anniversary in Russia. Unlike Ingosstrakh, which had its roots in the country, AIG came in cold, and according to President Alexander Zaretskly, "We were not accepted well at all by local insurance companies. In fact, our life insurance was under threat in 1998-99 due to proposed changes in legislation lobbied by some companies." After working hard to establish relations with local constituencies of all types - competitors, legislators and the general public - AIG now has solidified its position in the Russian market. "We see a lot of potential here," said Zaretskly. "Insurance is not a product of first demand. We have a 'push' market, but we do see growth." He also stated that Russia's "huge, well-educated populace and growing middle class" bode well for the future. When asked to compare AIG's operations in Russia to those in other countries, he noted that there are more similarities than dissimilarities. "We distribute the same products and services," said Zaretskly. He points out that the political climate in which AIG Russia operates is different, and the skepticism on the part of the populace, particularly when it comes to life insurance, is something "you don't find in most other parts of the world." Added the president, "More than 90 percent of the life insurance sold in this country is part of a scheme to evade taxes." AIG's ethical approach to selling life insurance helps set it apart. Joseph Schaefer, regional director in charge on the life insurance side for AIG Russia, said that he sees considerable growth in his operation. After a lull in the late '90s, the company saw a 300 percent increase in sales in the 2000-2001 time frame. The market continues to expand beyond the heavily populated areas of Moscow and St. Petersburg into Russia's more rural regions. Schaefer, who is responsible for hiring a cadre of sales managers to run the AIG operation, said, "The younger crowd is very bright and highly educated here in Russia. But it is hard finding people with good management skills. We look for young, bright people and try to mold them into managers." Previous Page | Top | Next Page

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