Insurmark/Floodwatch and Bankers Insurance Service, two divisions of Aon Underwriting Managers, have combined their forces to introduce a new insurance solution, Global Portfolio Protection Program (GP3), to financial institutions that own or service mortgage loan portfolios.

The two units will underwrite this product together on behalf of Certain Underwriters at Lloyd’s.

Aon said that the Global Portfolio Protection Program will offer approximately 8,000 US financial institutions mortgage impairment protection, mortgagee errors and omissions coverage , foreclosed/real estate-owned property and liability insurance, and force-placed hazard and flood insurance in single insurance policy.

The insurer added that combining these coverages on one policy form mitigates the potential for coverage gaps, administrative difficulties and reporting restrictions for financial institutions.

Bankers Insurance Service president and CEO Bill Kaplan said given the high level of foreclosures and repossessed properties at financial institutions across the US, the unit developed GP3 to provide a one-stop solution to address exposures faced by banks, mortgage banks, insurance companies and any other entity that owns and services mortgage loans.

"GP3 is designed as a package program that simplifies administration and protects an institution’s mortgage portfolio from several causes of loss for the entire life of a loan," Kaplan said.