Oklahoma City-based BancInsure, a former provider of insurance to community banks that lost surplus as a result of the recent financial crisis, announced it has reentered the insurance marketplace with a new business strategy focusing on non-financial customers and with a $30 million capital investment from its new owner, Foster Jennings Inc., a New York-based diversified financial services holding company.
Following financial losses in 2011 and 2012, BancInsure became the subject of administrative proceedings by the Oklahoma Insurance Department. The issues involved in those proceedings were resolved after Foster Jennings acquired BancInsure from BMSI Holdings Inc. and made its capital investment.
Separately, BancInsure’s community bank business was acquired by AmTrust Financial Services Inc.
Lisa Bays, chief executive officer, BancInsure, said all legal and administrative matters against the company have been dismissed.
The New Strategy
The new strategy will involve writing business in the program distribution segment of the industry, where managing general agents and program administrators focus on insurance for specific types or classes of businesses, from commercial auto fleets and real estate agents to marinas and wind turbines.
Chief Operating Officer and Underwriting Head Michael Beasley said the company has already been in the market and is considering programs involving these and many other types of businesses.
Beasley said the company “will provide auto, general liability, property and surety coverages for a variety of programs – typically, accounts with between $3 million and $20 million in premiums.”
Beasley, who has been involved in the property/casualty insurance industry for 22 years, acknowledged that, as the company no longer writes insurance for banks, it will need a new brand name, and hopes to have one soon.