AIG – What is the PR Solution?

by Jim Pasinski on March 19, 2009

By Jim Pasinski

AIG, the U.S. insurance giant tied up in a flurry of bad news this week (and last fall, too), is a very “reputation-damaged” firm at the moment, again. Obviously.

From the PR side, the biggest problem that AIG faces is that there is no quick or easy fix to repair its reputation or to change the news cycle, and that is not good for business either. Advertising Age looks at AIG and wonders if there is any fix at all.

Meanwhile, WaPo goes inside AIG on the day its leader, Edward Liddy, was on Capitol Hill taking a beating from legislators on issues with the company he was recruited out of retirement to rescue last fall after taxpayer dollars were used to get AIG off of life support.

In short, Americans pumped billions of their own dollars into AIG and its bonus issue will never resonate well; in turn, AIG’s reputation and business are suffering from possible irreparable harm. Last fall we heard that AIG was “too big to fail.” Now you have to wonder how they’re going to attract and retain customers with all of this bad press.