Banks & Insurers on Opposite Sides of NY Settlement

Principal Marc Tanowitz’s commentary is featured in this article about force-placed insurance and Assurant agreeing to New York State’s demand to stop paying bank partners for their business. Sample excerpts: "'Assurant and QBE did a great job of making it easy for the servicers to make money on this,’ says Marc Tanowitz, a consultant for Pace Harmon who has pitched banks on force-placed market changes. ‘That gravy train is gone...The approach taken by New York will be just as costly for banks, but much easier on insurers. Although it will lower the rates Assurant can charge, the company will recoup some or all of that money in savings on commissions or other payments...Assurant stepped out of the way and let the servicers [banks] take the brunt of the harm,’ Tanowitz says.”

American Banker