REP & WARRANTY INSURANCE UPDATE
We get lots of questions around Rep and Warranty Insurance. It's a popular product that continues to evolve, so thought it would be helpful to share some of the highlights from AIG's recent report:
- Because of the increasing popularity and demand for Rep and Warranty Insurance, there is a record number (25+) of carriers in the RWI marketplace. As a result of increased supply, coverage is broader and rates are lower.
- Claims frequency is about 1 in 5 policies. Claims around financial statements (tax breach, for example) are the most common.
- Quality third party diligence (QoE, Tax, Legal, Information Technology, etc) is critical to Rep and Warranty underwriters and will make all the difference
You can read the full report at https://www.aig.com/mandaclaims