AIG highlighted the crisis in directors' and officers' (D&O) liability insurance over the weekend when it reported a 60% increase in its D&O premiums.
AIG has become a victim of the steep increases in the prices it charges for D&O. D&O insurance has become increasingly costly following a wave of US corporate scandals and the rise in shareholder litigation.
AIG said in a report on FT.com that its D&O premium cost $2.85m (£1.87m) for the year to March, up 58% from last year's $1.8m (£1.15m).
Despite the massive premium hikes many insurers are still suffering on their D&O policies because they under priced policies in previous years.
AIG had warned over a year ago that the insurance industry was facing a "bad run" of D&O claims.
