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Understanding a Changing Regulatory Landscape

Market Due Diligence

Understanding a Changing Regulatory Landscape


Our client was interested in pursuing an investment in the lender placed insurance market. Recent regulations had been established, but many industry experts believed that they had not gone far enough.  In order to move forward with the transaction, our client needed to understand the regulatory environment (current and future) in addition to the competitive landscape.

Target Profile

  • Current regulatory official who could explain newly established regulations and the potential for revisions.
  • Senior individual from a large financial institution who can explain how they handle this product internally.
  • Former individual from a competitive company who could provide a valued perspective on the competitive dynamics

The Search

This search in particular was challenging given recent negative publicity in the media which labeled these products as predatory.  We had to develop language which better explained why we were reaching out and the interest of our client.  In the end, we were very successful aligning our clients with a number of very relevant individuals who could address all their key concerns.

The Results

Splitting the project into three components, we identified, vetted and set up calls with six individuals. One call was set up on the first day of the project! Representative advisors include:

  • Former CMO, competitive firm
  • Former Senior Vice President of Research and Education at the Mortgage Bankers Association
  • Current Director, Center for Insurance Policy & Research, NAIC
  • Current EVP, Operations, large institutional insurance provider

Last Word

Our client decided to walk away from the deal after conversations with the advisors confirmed the unstable regulatory environment.

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