NEW YORK–The subprime mortgage market collapse may not seriously affect insurers from an investment standpoint, but there are concerns about ripple effects and professional liability claims that could result, brokerage firm experts said.
In a panel discussion today at the Marsh & McLennan Companies headquarters here, company executives discussed the "Subprime Shakeout" and how deeply the effects from resulting housing lending failures will extend.
Subprime mortgages are loans made to individuals with bad credit or whose income may not have been sufficient to pay the mortgage. Many of these subprime loans were adjustable rate mortgages that homeowners are now finding hard to repay as interest rates rise.
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