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NAB in proposed LMI tender with US insurer

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Australian Broker | 08 May 2017, 08:25 AM Agree 0
The move comes as the US insurance giant seeks to step up its local presence and shake up the Australian LMI market
  • TMAC | 08 May 2017, 09:07 AM Agree 0
    Very happy that the current duopoly appears to be coming to an end. Unfortunately any discount in LMI premiums is likely to go straight into the banks pocket and not passed onto to the borrower. Maybe NAB may stand by its current mantra "More Give Less Take" or am I just kidding myself!
  • Tony | 08 May 2017, 10:57 AM Agree 0
    Another group of thieves moving in!
    The enormous profits these MI providers generate from borrowers who can least afford it is disgraceful.
    With such a small default rate the lenders should take the risk themselves at a much cheaper rate.
  • Dave Robinson | 08 May 2017, 01:09 PM Agree 0
    OMG why do people who don't understand the LMI market feel the need to comment. Firstly the duopoly (as it has been put) is not coming to an end. If you read the AFR story in full and relied less on AB for the information you would have a far better idea of what is going on and just how much smaller the LMI market looks to be heading.

    And yes they do make profits but have you seen the last set of financials? Mmm that's what I thought. LMI is a cyclic business and it's hitting the downward part of the cycle right now, hence Arch are coming in to take over the LMI space. The default rate is about to climb and you should be asking yourself "why don't the lenders do their own LMI?" and the answer is that there is no money in it. Banks are risk managers and the risk with LMI is far too great for them.

    I hope that helps clear up some of the misconceptions you may have.
  • steve Reid | 08 May 2017, 01:56 PM Agree 0
    The way that Genworth and QBE are treating the broker business is a joke they pick what they want....
    We need more players to move the existing players into a More Can Do attitude like when we have 4 more players they used to chase the business....

    Like even when a deal ticks all the boxes they use the oh the borrowers are two rent reliant or they have two credit cards we have to decline
    More players is a Real must and yes have a look at the Last years Profit why would they change ....... LMI remember what the Cab companies around Australia said when UBER turned up ( they side go for it the rest is history )

    They have Forgot one Big word its call service and not to say have a go at there premiums OMG

    Remember this !!!

  • CM | 08 May 2017, 02:28 PM Agree 0
    Well said Dave
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