IAG (ASX:IAG) share price takes wild ride on Greensill fears

The Insurance Australia Group Ltd (ASX: IAG) share price is on a roller coaster today. Shares in the insurer crashed 10.6% to a 5-year low of $4.30 before being placed in a trading halt. Since resuming trade, the share price is at $4.60, almost 5% down on yesterday’s close.

In contrast, the S&P/ASX 200 Index is up 0.47%.

Let’s take a closer look at what is weighing on the IAG share price.

IAG and Greensill’s insolvency

As previously reported, Greensill was a supply-chain debt provider. Its business model was to provide funds to suppliers awaiting accounts receivable in the form of a loan to the purchasing business.

As with the 2008…