This year’s unfortunate abundance of natural disasters provided a unique backdrop for an annual event in the loan servicing industry: the Mortgage Bankers Association’s (MBA) Insurance Stakeholder and Conclave meetings. The two-day conference was hosted by NorthMarq Capital October 3-4. Representatives from lenders and servicers across the country discussed trends and challenges in the insurance compliance realm of asset management.
During the event, there was substantial discussion surrounding the potential implications of the recent significant events, not only in terms of loss payment (further discussed in Significant Events: A Story of NorthMarq Collaboration), but also in the impact on the cost to repair properties due to a lower availability of raw materials and labor resources, and the likelihood that we could see a significant increase in premium cost across the country.
“Discussing the current challenges facing the industry provides valuable perspective and knowledge to benefit those that work through insurance compliance on a daily basis,” said Commercial Insurance Supervisor Nicole Malaske. “It was an honor and privilege for NorthMarq to have the opportunity to host the 2017 Insurance Conclave.”
The topics for the Stakeholder meeting ranged from common compliance exception requests and the type of documentation needed in order to make an educated decision in assessing the risk to the best practices across lenders and servicers in monitoring the internal quality control within our teams.
The Conclave meeting on the second day incorporated panels of insurance industry experts with representatives from risk and insurance consulting, insurance brokerage, forensic services, and legal firms. They provided training and discussion on a variety of topics: complicated insurance program structures such as captive insurance, risk retention groups, and risk purchasing groups; lesser-known insurance coverages and their potentially significant impact on loss payment; and the looming threat of cyber risks on the commercial real estate industry.
In addition to the opportunity to broaden our knowledge as it relates to our role of insurance compliance in the commercial real estate and insurance industries, the event provides us with the chance to spend time building relationships with peers and customers.
“The Conclave allowed us the opportunity to collaborate with our peers, discuss current and future market trends, and provide our feedback on lender requirements,” said Jason Lenz, senior manager – Escrow Administration.
Gaining perspective from peers and insight from lenders is an important aspect of ensuring we are in line with the industry in our processes and allows us to provide premier service and better manage expectations with our lenders and borrowers.