Top Business News
States Investigating AIG Over Prices (Update)
Jeanine Poggi
07/13/09 - 04:11 PM EDT
(Comment from AIG added.)
American International Group(AIG Quote) is being investigated by New York and Pennsylvania on claims that it is using its leading position and government support to charge too little for coverage.
Insurers such as Chubb(CB Quote) and Liberty Mutual are among some saying that AIG is under-pricing the market, according to Creditsights.
In March, the Government Accountability Office said it found no evidence of irresponsible pricing by AIG.
"As we have stated previously, we believe that allegations that we are inappropriately underpricing business to retain market share are untrue and are being driven by competitors frustrated by their ability to win market share," the company said in a statement.
The investigation is expected to be complete by the fall.