Challenge

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.

Is the regulatory environment around lender-placed insurance unstable enough to make us walk away?

Target Profile

  • Current regulatory officials who could explain newly established regulations and the potential for revisions.
  • Senior individuals 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

“In an increasingly competitive market, we endeavor to identify and leverage value-add due diligence and board-level resources both pre- and post-closing. Without a doubt, we found benefit in the use of Apex Leaders’ Due Diligence services.”

~ Nate Good, Prairie Capital

The Search

Given recent negative publicity in the media which labeled these certain insurance products as predatory, we needed to excerise serious caution and confidentiality during research and advisor vetting. To avoid inflammatory encounters, we developed 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 Chief Marketing Officer at a competitive firm
  • Former Senior Vice President of Research and Education | Mortgage Bankers Association
  • Current Director, Center for Insurance Policy & Research | NAIC
  • Current EVP of 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.