UPDATE 1-AIG taps Marsh executive to work alongside new CEO

(Adds AIG statement)

NEW YORK, July 5 (Reuters) - American International Group Inc said on Wednesday that it has named the head of Marsh & McLennan Companies Inc brokerage business to work alongside the insurance giant's new chief executive, Brian Duperreault, as chief operating officer.

Peter Zaffino, who was chief executive officer at Marsh LLC until accepting the AIG post, will lead AIG's daily operations in all countries, among other duties, AIG said.

AIG named Brian Duperreault CEO in May, selecting a protégé of former CEO Hank Greenberg and an industry veteran known for his turnaround expertise.

"AIGs field operations will benefit from Peters experience across all aspects of the business, most recently with one of the worlds largest brokers," Duperreault, 70, said in a statement.

Zaffino begins the position on Aug. 1.

Marsh & McLennan Companies, Inc on Wednesday named Marsh LLC President John Doyle to replace Zaffino as the brokerage unit's chief executive, it said.

(Reporting by Suzanne Barlyn; Editing by Dan Grebler)