AIG competitors complain about unfair advantage

New York and Pennsylvania state insurance regulators are investigating, along with the Government Accountability Office. In a preliminary report, the GAO said, while AIG was certainly more aggressive than it has been in the past, there didn’t appear to be any “inadequate” pricing, although the GAO did say it hadn’t “drawn any final conclusions.”

From the Journal: “The Fed needs AIG’s business to remain competitive because that could help the company repay the government. But if AIG charges too little for policies to keep from losing business, it could run up big losses on insurance claims years down the road — potentially bad news for the government.”