McGill and Partners and American International Group Inc. (NYSE: AIG) announced a strategic collaboration that will deploy artificial intelligence to manage insurance capacity distribution in the subscription market.

Under the agreement, AIG will provide 25% capacity across up to $1.6 billion of McGill and Partners' specialty portfolio gross premiums written. The collaboration utilizes what the companies describe as "agentic AI" capabilities to support real-time underwriting decisions through McGill and Partners' digital broking platform.

AIG conducted an analysis of McGill and Partners' specialty portfolio to establish underwriting criteria for the partnership. The insurer collaborated with Palantir to build data analytics capabilities that will provide near real-time insights on business underwritten, including exposure, limit deployment, modeled risk outputs and loss information.

The partnership leverages McGill and Partners' digital-first approach, which the London-based broker has maintained since its 2019 launch. The broker's technology platform provides data access that enables AIG's underwriting and AI-based portfolio management approach.

"This collaboration has the potential to disrupt the dynamics of the subscription market," said Steve McGill, CEO of McGill and Partners. "It strengthens the value proposition of leading underwriters in the market and redefines the way capacity is positioned in the best interests of our clients."

Peter Zaffino, Chairman and CEO of AIG, stated that the partnership uses AI and large language models to "continuously learn from McGill and Partners' portfolio and deploy capacity with greater insight, discipline and speed."

McGill and Partners operates as an independent specialty insurance and reinsurance broker with offices in London, Bermuda, the United States, Ireland, Australia, Switzerland and Sweden. The firm has backing from funds affiliated with Warburg Pincus alongside founder and employee ownership.