Comments on: How Will the Insurance Regulators React? – Part Two http://www.saai.com/index.php/how-will-the-insurance-regulators-react-part-two/ Sun, 08 Jan 2012 17:58:54 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: David Osborne http://www.saai.com/index.php/how-will-the-insurance-regulators-react-part-two/#comment-241 David Osborne Fri, 07 Sep 2007 13:18:42 +0000 http://www.saai.com/index.php/how-will-the-insurance-regulators-react-part-two/#comment-241 There's something else the NAIC should be worrying about (but probably isn't). How much of the losses in the sub-prime and other asset-backed markets are going to end up as underwriting claims. Banks are already being sued for having sold on as bonds loans that had insufficient due diligence, or were badly described to the bond buyers. This could be a lot more expensive that the losses on the asset side of the balance sheet. David There’s something else the NAIC should be worrying about (but probably isn’t). How much of the losses in the sub-prime and other asset-backed markets are going to end up as underwriting claims. Banks are already being sued for having sold on as bonds loans that had insufficient due diligence, or were badly described to the bond buyers. This could be a lot more expensive that the losses on the asset side of the balance sheet.

David

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