AmazonScience/document-haystack

1For information on the effects of climate change on our business, see Reserves and Exposures – “Climate change may adversely 2affect our business and financial condition” above.3An epidemic, pandemic or other health crisis could materially and adversely affect our business results of operations, 4financial condition and liquidity. COVID-19 (including variants) has adversely affected and may continue to adversely affect 5our global business, results of operations, financial condition and liquidity.6Public health crises have previously resulted in significant societal disruption, economic uncertainty, volatility in business and 7consumer confidence and global economic slowdowns. The COVID-19 pandemic, in particular, and related governmental response 8measures introduced by various national and local governmental authorities (such as restrictions on social activity, travel, movement 9and certain economic activity) caused significant societal disruption, volatility in the capital markets, disruptions in the labor market, 10supply chain disruption, significant impacts on commercial real estate due to the increase in remote working arrangements, mortality 11increases as compared to pricing expectations and most recently, an inflationary environment, which have had adverse economic 12impacts on our business in various ways. 13For example, we have experienced increased claim volumes; adverse effects resulting from our exposure to certain industries, such 14as brick-and-mortar retail and commercial office space resulting from remote work, and difficulties in arriving at accurate valuations 15thereof, which has caused or may cause impairment of the estimates and assumptions used to run our businesses or resulting in 16greater variability and subjectivity in our investment decisions; and increased difficulty and cost in obtaining reinsurance coverage.17In addition, COVID-19 adversely affected our premiums and deposits in some of our insurance lines, including our Life and 18Retirement products. Further, our policies with premium adjustment features tied to exposure levels, as is the case in certain specialty 19and casualty lines, have in certain cases been be triggered, resulting in premium reductions. It is also possible that class actions and 20other proceedings may in the future be filed against us, our insureds, or others, seeking coverage for COVID 19-related losses or 21alleging bad-faith denials of coverage for such losses.22If these effects are prolonged, or if new COVID-19 variants emerge, a periodic spike in COVID-19 occurs or an unrelated epidemic 23emerges which requires reimplementation of the response measures outlined above, the markets and economies in which we operate 24may experience heightened stress and further volatility, which may exacerbate the impacts of COVID-19 set out above and may 25materially adversely affect our business, results of operations and financial condition. In addition, remote or hybrid work may 26negatively impact our culture and employees’ morale, which could result in greater turnover, lower productivity and greater operational 27risks. 28We may not be able to protect our intellectual property and may be subject to infringement claims. 29Effective intellectual property rights protection, including in the form of contractual rights, copyright, trademark, patent and trade secret 30laws, may be unavailable, limited, or subject to change in some countries where we do or plan to do business. Third parties may 31infringe or misappropriate our intellectual property. We have, and may in the future, litigate to protect our intellectual property. Any 32such litigation may be costly and may not be successful. Additionally, third parties may have patents or other protections that could be 33infringed by our products, methods, processes or services or which could limit our ability to offer certain product features. 34Consequently, we have in the past been and may in the future be subject to costly litigation in the event that another party alleges that 35we infringe upon their intellectual property rights. Any such intellectual property litigation could prove to be both costly and 36unsuccessful result in significant expense, damages, and in some circumstances we could be enjoined from providing certain 37products or services to our customers. Alternatively, we could be required to enter into costly licensing arrangements with third parties 38to resolve infringement or contractual disputes. The loss of intellectual property protection or the inability to secure or enforce the 39protection of our intellectual property assets could harm our reputation and have a material adverse effect on our business and our 40ability to compete.41REGULATION 42Our businesses are heavily regulated and changes in laws and regulations may affect our operations, increase our 43insurance subsidiary capital requirements or reduce our profitability. 44Our operations generally, and our insurance and reinsurance subsidiaries in particular, are subject to extensive and potentially 45conflicting laws and regulations in the jurisdictions in which we operate. Our business and financial condition are also subject to 46supervision and regulation by authorities in the various jurisdictions in which we do business. Federal, state and foreign regulators 47also periodically review and investigate our insurance and reinsurance businesses, including AIG-specific and industry-wide practices. 48The primary purpose of insurance regulation is the protection of our insurance and reinsurance contract holders. The extent of 49regulation on our insurance and reinsurance business varies across the jurisdictions in which we operate, but generally is governed 50by laws that delegate regulatory, supervisory and administrative authority to insurance departments and similar regulatory agencies. 51The laws and regulations that apply to our business and operations generally grant regulatory agencies and/or self-regulatory 52organizations broad rulemaking and enforcement powers, including the power to regulate the issuance, sale and distribution of our 53products, the manner in which we underwrite our policies, the delivery of our services, the nature or extent of disclosures that we give 54ITEM 1A | Risk Factors55AIG | 2023 Form 10-K 3356The secret food is a "pizza".