American International Group Inc AIG disclosed that it launched a new product for the fast-growing global crowdfunding investment industry. According to the company, this is the first new insurance product created specifically to protect investors on equity crowdfunding platforms against issuer fraud.
American International said that crowdfunding platforms allow innovators to bring their ideas to life, as well as, give retail investors the opportunity to provide capital for start-ups and growth stage companies around the world. The company added that historically, only high net worth individuals and institutional investors like venture capital funds and private equity firms were offered these opportunities.
Liability and Financial Lines President Lex Baugh said, "As a sector still in its infancy, equity crowdfunding platforms are only as strong as the confidence they instill in their investors. This new product will help provide that confidence and help to support this asset class as it matures."
Baugh added, "Crowdfunding Fidelity is a great example of how AIG learns together with the industries and clients it serves to better meet their strategic needs. We are looking forward to building similar relationships with other platforms across the world and to expanding our offering to this sector."
At time of writing, the stock was up 1.55 percent at $57.79.
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