BestWeek: As U.S. Foreclosures Spike, So Do Sales of Vacant Property Insurance

Business Wire, August 8, 2008

OLDWICK, N.J. -- The skyrocketing rate of U.S. foreclosures has provided endless headaches for lenders, but the failures are actually creating opportunities for insurance wholesalers, according to a story in BestWeek U.S./Canada.

David J. Price, executive vice president and chief underwriting officer for Burns and Wilcox, said vacant home insurance has been a big product for the company. Burns and Wilcox wrote about 10,000 vacant property policies last year. Already this year, the company has written about 7,000 policies, said Price.

At the same time, RealtyTrac, an online marketplace for foreclosure properties, reported 220,000 homes taken by bank repossessions in the second quarter this year--nearly triple last year's second quarter amount.

Also in BestWeek U.S./Canada:

Some states are further ahead of the curve than others on reviews of companies required by the National Association of Insurance Commissioners' solvency accreditation program.

Also in BestWeek U.S./Canada:

The ongoing slowdown in real estate activity combined with tightening mortgage market conditions and the worsening U.S. economy have been a significant drag on the title industry's revenues, according to new A.M. Best research, "U.S. Title - 2007 Financial Review."

Also in BestWeek U.S./Canada:

Four new statistical studies rank writers of Workers' Compensation, Total Auto, Commercial Multiple Peril and Homeowners Multiple Peril in the United States.

Also in BestWeek Europe:

Munich Re remains upbeat despite a drop in 2008 first-half income tied to investment losses.

And in both editions of BestWeek:

As of the close of the U.S. market on Thursday, August 7, the AMBG stood at 1045.00, a one-week rise of 0.28%.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.