Skip to content
Subscriber Only

AIG Sees Labor-Cost Arbitrage as Jobs Move to Philippines

American International Group Inc., the largest commercial insurer in the U.S. and Canada, is shifting workers to locations including the Philippines and Texas to reduce costs.

“We’re talking several thousand jobs migrating to these centers,” Peter Hancock, chief executive officer of AIG’s property-casualty business, said yesterday in an investor presentation in New York. “Initially that creates some labor-cost arbitrage, but over time, it gives rise to business process optimization and finally automation.”