Dubai, United Arab Emirates - American International Group (AIG) launched a new insurance product for the fast-growing crowdfunding investment industry. Eureeca, a Dubai-headquartered global crowd investing platform, is the first platform to offer investors the AIG coverage.
The new product - Crowdfunding Fidelity - is the first crowdfunding insurance product to offer investors protection against issuer fraud, and is now available to platforms in the UK and Canada.
Crowdfunding platforms enable innovators to bring their ideas to life and offer retail investors the opportunity to provide capital for start-ups and growth stage companies around the world. Before the development of crowdfunding, only high net worth individuals and institutional investors such as venture capital funds and private equity firms were typically offered these opportunities.
Eureeca, which is regulated by the UK Financial Conduct Authority, launched in 2013 in Dubai and focuses on providing deals from the Middle East, Europe, and Southeast Asia.
Alex Blom, Head of Financial Lines AIG MENA: "Financial technology like crowdfunding increases the potential for economic opportunity, but it also increases the potential exposure of businesses and individuals to new risks. Crowdfunding has begun to show its potential in the region and we are delighted that we were able to partner with Eureeca locally to create a product that will be of benefit here and elsewhere."
Crowdfunding Fidelity protects individual investors against the theft of issuer assets by issuer directors, officers, or general employees which cause a direct loss to the individual investor. By subscribing to this innovative new product, crowdfunding platforms will enhance the value they can offer investors by offering protection against issuer fraud. Although there have been limited instances of fraud in this sector so far this new product helps to build investor trust in this emerging sector by working closely with the platforms to ensure underlying issuer trustworthiness.
Mr Blom said: "This product demonstrates AIG's continued innovation as well as its support for start-ups and the sharing economy. We hope that this product increases propensity to invest in new and growth stage businesses in the region which will benefit society."
Chris Thomas, Co-Chief Executive Officer and Co-Founder of Eureeca said: "The new power of the crowd and the desire to democratize investing throughout the world can unleash great partnerships. The success of the ecosystem depends on collaboration between all stakeholders. AIG has demonstrated its commitment to being one of this industry's most valued partners by engaging the crowdfunding space at such an early stage."
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About AIG
American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today we provide a wide range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 100 countries and jurisdictions. Our diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com and www.aig.com/strategyupdate | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds. In Europe, the principal insurance provider is AIG Europe Limited.
About Eureeca
Eureeca is the first global equity crowdfunding platform. It enables members of its investor network, who range from casual and angel investors to institutional firms, to buy shares in growth-oriented businesses, while providing operational businesses with crucial access to capital.
Eureeca is a multi-regulated platform, having received licensing from the UK Financial Conduct Authority and the Securities Commission Malaysia in 2015, and recently the Netherlands Authority for the Financial Markets. From its offices in Dubai, London, Kuala Lumpur, and Amsterdam, Eureeca offers high-yield potential investment opportunities from the Middle East, Europe, and Southeast Asia to its 10,000-strong investor network. Businesses raising funds can leverage this network for capital, strategic connections, and expansion into new markets.
Contacts:
AIG:
Evren Sandikci, Communications and Marketing Lead, Mena Zone EMEA
Evren.sandikci@aig.com, +971 4 36 217 11
Blue Rubicon:
Megan Ballantyne, Senior Consultant, Blue Rubicon
megan.ballantyne@bluerubicon.com, +971 55 697 5176
Eureeca:
Hayden Pirkle, Corporate Communications Manager, Eureeca
h.pirkle@eureeca.com, +971 56 826 8949
© Press Release 2016
