Regulator Focus on Insurance Woes May Help Credit Risk Management

More private insurers are pulling coverage and withdrawing from property and casualty markets they deem high risk, presenting the banking industry with a new set of potential risks. If certain collateral were suddenly impossible to insure, banks would find property lending perilous or even untenable in those affected markets. “It’s a dealbreaker,” said Matt Bryant, an executive vice president and director of credit risk at Frost Bank, of lending against potentially uninsurable assets.�…