Mortgage-related insurances. Report of the Pecuniary Loss Working Party

Document description

Mortgage Indemnity Guarantee (MIG) Insurance is a class of business which appears to have received relatively little actuarial attention in the past, although it has been transacted for a considerable number of years. This lack of actuarial investigation may be associated with the fact that MIG was historically perceived as profitable, even after the payment of substantial commissions to the lending institutions, and may even have been regarded as 'money for old rope'. The apparent profitability was reinforced by the accounting conventions employed, and latterly profits may have been more apparent than real.