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Avoid Insurance Verification Delays and Reduce Employee and Borrower Stress

The Difference Is in the Details: Timely Automated Insurance Verification for Borrowers

“Why am I getting these notifications? I sent in my insurance information already — twice!” Depending on the company and system you’re using for insurance tracking, this kind of noise may be an all-too-familiar sound.  It’s never a good feeling to hear that an upset borrower has called to complain that they’ve received an insurance notification — or even worse, had a policy placed — in error. That’s why it’s so important that the partner you choose for portfolio protection has done everything they can to ensure those calls don’t happen.

Collateral protection has come a long way since State National pioneered it back in 1973. In those days, when notifications and insurance submission was all done by mail or phone, even the best-run programs had to cope with a certain level of borrower noise because of unavoidable delays.

But, fast forward to today and cutting-edge proprietary advanced technology and tools are available to solve these problems — in many cases, before they ever happen.

We’ll let you in on a secret, though — not every provider has them at the same level, although they may tell you they do.

 

Do you want basic transportation or a premium ride?  See what our portfolio protection program offers that others don't. 
Because of State National’s exclusive technology solutions, and service that’s entirely focused on portfolio protection, all you’ll notice is the peaceful sound of silence — which is good for your borrowers, your staff, and your bottom line.

Watch the short video below to see how State National can help you reduce friction and borrower noise in your collateral protection program.

How State National Reduces Borrower Noise

 

State National
State National
As the leading insurance carrier in the United States specializing in CPI, State National offers single-source solutions for credit unions, banks, finance companies, and specialty lenders of all sizes. Our services are cost-effective and tailor-made to safeguard assets against uninsured collateral losses.

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Tackling Inflation and the Automobile Industry: A Simple Solution to Reduce Future Auto Loan Charge-offs

Despite Inflation, You Can Still Maintain a Competitive Advantage and Protect Your Auto Loan Portfolio   Spotlight Soundbite: The Value of Customized Portfolio Protection in the Subprime Auto Loan Market     Borrowers Are Facing Financial Stress The government’s stimulus checks have long run out, as have the grace periods many financial institutions implemented during the pandemic. Interest rates have soared and prices have inflated. Individuals have returned to work and are again bearing the costs of gas, transportation, and childcare. While cheery, the holiday season may be met equally with foreboding for some as they contemplate how to balance their checkbooks with the looming expectation of events and gifts on top of already heightened regular expenses. While buy now and pay later programs may offer temporary relief, borrowers will ultimately not be able to put off making tough decisions about where to spend and save. Unfortunately, a growing number of auto loan borrowers, and especially subprime borrowers, are choosing to drop or reduce their auto insurance coverage as a result of having to decide which bills to pay with their increasingly stretched paychecks. And these uninsured or underinsured borrowers pose a threat to your institution’s loan portfolio and profitability. The news isn’t all grim, however — State National can help protect your financial institution from the risks posed by this group. How to Minimize Charge-offs Caused by Uninsured Borrowers Do you currently use an insurance tracking system to keep track of your borrowers’ coverage status in an attempt to prevent charge-offs? It’s a good start — tracking is a critical part of monitoring your institution’s risk exposure. However, having your staff track insurance in-house is a time-consuming and inefficient solution. More concerning, even if you employ an outside vendor to track coverage for you, studies show that tracking alone is not enough to encourage borrowers to keep their insurance in force. Without a consequence for remaining uninsured or underinsured, it’s been shown time and time again that a significant portion of borrowers, particularly in the low prime and subprime space, simply will not heed warnings to bring their loans into compliance no matter how many letters or phone calls they get reminding them to do so. Without a mechanism that will actually change borrower behavior, tracking alone still leaves too much risk in your portfolio. A Persistent Problem — With an InsurTech Solution The good news is, you can more thoroughly protect your portfolio while also saving labor costs and freeing up your staff to perform other tasks to grow your business. And you can do it all easily, seamlessly, and with total peace of mind when it comes to compliance. Protecting collateral from loss is most definitely not the same as it was “in the old days” — or even just a few years ago. Advances in artificial intelligence, machine learning, and other leading-edge technology solutions have changed the game when it comes to mitigating the risk from uninsured borrowers. From software bots that can log in to insurer websites and update thousands of insurance statuses in seconds to nearly effortless multichannel borrower submission options including QR codes, email, text, web, and more, collateral protection problems of the past are simply not an issue today, especially with State National as your provider. As I like to say, “This isn’t your grandpa's CPI!”     Save Time, Money, and Aggravation — What’s Not to Like? State National’s solutions provide tracking AND protect your portfolio. We also save your financial institution time with seamless implementation and multi-option borrower insurance submission solutions. Even better, there’s InsurTrak – our custom-designed proprietary technology platform where you can view all program details in real time with just a few clicks. Additionally, you can personalize your coverage around exactly what works best for your business. Whether you need you need a full-featured, comprehensive program, one that keeps costs at a minimum for borrowers, or something in between, State National can customize a program that best fits your needs.   A Simple Solution for Reduced Risk and Increased Profitability We have heard from some financial institutions that they “have no charge-offs” because they planned and allotted for a certain amount of loss. But money lost is still money lost even if you budgeted for it! What if you could save your company hundreds of thousands of dollars this year? Well, you can! Let me show you how you can leverage State National’s advanced technology and 50 years of experience mitigating loss from uninsured borrowers to proactively protect your business against today’s unpredictable economy and the wave of charge-offs your financial institution may be facing soon. It’s not too late to protect your portfolio from what’s coming our way.  

Amazing Things Happen When Female Executives Get Together

State National's Retreat Where Female Finance Executives Go to Network and Learn A 2021 report from CUNA indicated that 51% of CEOs at credit unions and 33% of credit union board members are female. Many organizations speak at length about the value of empowering and providing opportunities to women — yet this recognition must be met with action. For example, Kim Sponem, CEO of Summit Credit Union, took action by starting The Red Shoes initiative. Filene Research Institute actively creates research reports about women in credit union leadership. These are just two of many examples across the credit union industry. Missions like these are an important part of transforming the narrative of women and finance. State National Companies also recognizes the unique leadership traits and skillsets that female leaders bring to the financial services industry. To celebrate those traits and provide women leaders from across the country the opportunity to build relationships with their peers, we created our own initiative — an annual event called the Female Executive Networking (FEN) Retreat.   Why a Retreat Specifically for Female Executives? The goal of this annual retreat is multifold: Provide valuable, meaningful, and actionable education, information, and resources to senior credit unions and financial institutions executives that they can use to move their organizations forward. Create a forum for financial institution leaders from across the country to share best practices regarding leadership, retention, business growth, and operational excellence. Provide a rich and rewarding experience that organically allows connections and relationships to grow. Empower and inspire attendees to return to their financial institutions re-energized, with new ideas for accelerating the growth of their organizations. With these goals in mind, we launched our first FEN retreat in early 2020. And, oh, how critical it was for the female leaders who participated in this first event to achieve these goals — because at the time we didn’t realize were heading home to nearly two years of quarantine and isolation! A Most Welcome Return In 2021, after waiting 18 months from our launch date, we were more than eager to resume some sense of normalcy and held our second FEN Retreat. That year’s event featured Terri Trespicio, speaker, coach, and best-selling author of Unfollow Your Passion, as our keynote speaker and workshop leader. This year, our 2022 keynote workshop, titled How Macroeconomic Conditions Will Affect Your Financial Institution, Your Customers, and Your Household, was led by Marlena Lee, Ph.D., Global Head of Investment Solutions at Dimensional Fund Advisors, and Mary Ellen Krueger, Director, Wealth Management and Partner at Aspiriant. Not only are these FEN retreats educational, inspirational, and just plain fun, we at State National are also proud of being a part of the movement to empower even more women to lead in moving the credit union mission forward. After all, studies show that more female executives in a C-suite role can improve both customer orientation and financial performance. That’s a win-win-win — for credit unions, for their members, and for women in financial leadership. If you are interested in learning more about State National’s Female Executive Networking retreat, please contact your State National Client Executive or Regional Vice President.   Comments from FEN attendees: