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Expanded Use of AI-Based WRAP Delivers Results

Our WRAP (Web-Based Robotic Automated Processing) system is continuing to increase efficiencies. WRAP now proactively searches for new policy information from 7 major carriers, including the country's top 5 auto insurers.

UPDATE! To illustrate how WRAP continues to increase in power and efficiency, in April 2023 the bots reviewed over 140,000 loans, successfully finding and updating insurance on 33% all completely automatically and with no borrower contact needed.

Expanded Use of AI-Based WRAP Delivers Results

Innovations in Robotics Processing Continues to Increase Efficiency

Robot Icon WRAP stands for Web-Based Robotic Automated Processing, and it has delivered incredible results for State National’s clients since it was introduced in 2019. In fact, you could say that our AI-based bot “team” has started a revolution in automated insurance verification.

Before WRAP, our insurance verification staff had to complete all web-based verifications manually, by logging in to insurance companies’ websites to find the data they needed. But with WRAP, thousands of borrower accounts can be automatically updated in our proprietary InsurTrak tracking and reporting system every day, without any human intervention whatsoever. This frees up our human staff members, leaving them even more readily available to help our clients maximize results from their CPI program.

These hard-working software bots are fast, precise, and tireless — reducing bottlenecks, accelerating speed, and increasing accuracy around the clock. They hate inefficiencies and love serving our clients 24/7!

Continual Improvement — WRAP Just Keeps Getting Better!

Since our initial investment in WRAP, we have continually expanded its use to search for, locate, and update our systems with up-to-the-minute, real-time insurance information.

We could see right away that WRAP was delivering remarkable results, so we quickly started looking for other places to put this powerful AI technology to work. Our research showed that 40% of all auto insurance policies canceled with the top 5 carriers (Allstate, Farmers, GEICO, Progressive, and State Farm) were subsequently renewed with one of the other five. We also noticed that many borrowers who canceled with other carriers ended up also choosing one of these 5 leading companies.

So, in September of 2020, we programmed our bots to proactively search for new policy information within these 5 large carriers whenever we are alerted that any borrower’s policy has been canceled. This happens 3 days before a notice would have been sent to a borrower with a canceled policy — which means many notices that previously would have gone out due to lack of available information now just never happen.

Little Bots, Big Results

A month after putting WRAP into action in this new way, we saw about a 30% drop in these types of notices sent to borrowers, and we expect this percentage to increase even further in the months ahead.

To learn more about how our bots work for you, watch the video.

Today, WRAP technology is doing more than ever to increase efficiencies at State National. In fact, we also added some new bots to the team that can search for insurance on new loans as they hit the State National system — searching the same 5 carriers they do for cancellations. Early results show the bots are very busy, looking up over 70,000 new loans each month with a 20% success rate (now it's even more — see 2023 update at the top of the page!) This results in a significant reduction in notices and related customer noise while the borrower is free to enjoy their new vehicle.

Our Investment in WRAP Pays off for Everyone

While it’s too early to accurately measure the overall long-term efficiency of putting insurance cancellations and new loans through WRAP, we have a foundational understanding of what our bots have been able to accomplish since we initially onboarded them as members of our State National team.

Comparing 20 accounts from 2017 to 2020, our team measured paper notices, inbound calls, and uploads to our web-based insurance portal, MyLoanInsurance.com. The results? Impressive! Paper notices went down 16.1% and inbound phone calls down 25%. That means we were able to increase total insurance verifications by 76% without adding personnel — resulting in less friction and less borrower noise.

Not only that, but we’ve also been able to utilize bots to streamline our claims processes with InstaClaim, which automatically settles some types of claims in 10 seconds or less. Claims paid in seconds, with ACH payment initiated overnight, instead of waiting days or weeks? There’s simply nothing else like it in our industry.

The past several years have seen leaps in technology that have helped us optimize how we receive and process data, and we continue to look for more opportunities to speed up and streamline our workflows. In fact, we’ve got another exciting technology launching very soon, and it promises to be a game-changer. Stay tuned!

State National’s commitment to innovation continues to translate to a positive client and borrower experience credit unions, banks, and finance companies just can’t get anywhere else.

David Crawford
David Crawford
David Crawford joined State National in 1998 and was instrumental in the creation and leadership of the centralized Service Operations for Lender Services, overseeing the continued growth of the Document Processing, Contact Center, Account Services, and Product Support groups. In 2018 he assumed the newly created role of Vice President of Strategy & Innovation, where he is the primary interface between IT and business users. He is responsible for researching, selecting, and implementing technology-based solutions to further enhance service delivery both internally and to State National’s clients.

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Compliance You Can Trust, Transparency You Can See Balancing risk management and regulatory compliance while maintaining strong borrower relationships is no easy task. At State National, we understand the weight of this responsibility. Protecting your financial institution, your borrowers, and your reputation is at the core of our work. That’s why our mission is to deliver industry-leading portfolio protection solutions anchored by innovative technology, unmatched transparency, and steadfast reliability. How State National Ensures CPI Compliance At State National, compliance isn’t just a priority, it’s built into everything we do. We know lenders face mounting challenges, including economic uncertainty and heightened regulatory scrutiny. That’s why we’ve developed a comprehensive approach that goes far beyond checklists; it’s about operating with integrity and ensuring our programs exceed regulatory and operational expectations. Industry Expertise You Can Rely On Regulatory Expertise: Our skilled team actively monitors federal and state-level mandates to ensure your program remains compliant. Whether it’s evolving regulations or precise documentation requirements, we’ve got you covered. In-House Compliance Department: Our on-site team employs strict, measurable quality control processes. Proactive Adherence: This same dedicated team manages over 50,000 regulatory filings annually, helping you stay ahead of federal and state mandates, including guidance on NCUA, CFPB, and other key industry regulations. Comprehensive Audits: Our meticulous audits and legal reviews ensure your institution is prepared not just for current regulations but also for future challenges. Proven Reliability: State National achieved the prestigious 'A' (Excellent) rating from AM Best the very first year we were eligible, and we have held that rating for 30+ consecutive years — a testament to our exceptional financial strength and dependability. Future-Forward Research: We actively collaborate with industry organizations and regulatory bodies to anticipate and adapt to upcoming compliance changes, ensuring you and your organization are always ahead of the curve. Comprehensive Risk Management Our industry-best risk management services go above and beyond to protect your institution, ensuring compliance every step of the way. From data security to borrower communication, we incorporate rigorous measures, including bulletproof audit trails and prevention-focused processes, to safeguard against potential missteps. Accurate, prevention-first approach reduces unnecessary borrower touches. Focused portfolio protection expertise with decades of specialized experience. Complete audit trails for ongoing compliance visibility. Proper licensing for all State National claims adjusters to ensure claims are always handled in accordance with required regulations. Ongoing annual training for all relevant employees on the proper handling of PII, Fair Claims Handling, best practices for data security and controls — phishing, quishing, physical security both in and out of office, and more. Borrower submission of insurance information directly to us minimizes the risk of lost documentation. As the only dedicated portfolio protection provider that is also the underwriter, we don't act as a broker like other providers do — we are able to streamline communication and eliminate unnecessary handoffs and information sharing. Taking the Extra Step at Every Step Because every state department of insurance operates differently, we've also gone above and beyond to meet each state's unique regulatory standards. We create state-specific notices tailored to these requirements, and also carefully develop all of our borrower notice cycles to align with each state's precise notification guidelines. Advanced Technology Tools for Simplified Compliance Solutions Staying compliant in a rapidly changing financial environment requires advanced tools and forward-thinking innovation. That’s why State National integrates advanced technology into every facet of portfolio protection, designed to simplify compliance while improving efficiency and control. Our proactive approach ensures that the vast majority of insurance updates — about 79% — are handled completely behind the scenes, with no lender or borrower involvement. We employ extensive automation to maximize accuracy and efficiency, including our well-established EDI process, cutting-edge AI tools including insurance search and verification technology, Intelligent Document Processing (IDP), automated text and email notifications, and more. What Does Technology Have To Do With Compliance? Because of the unprecedented speed and accuracy of these automation efficiencies, our fast, effective, low-touch resolution reduces the risk of uninsured borrowers while enhancing operational precision. With 97.5% of borrower insurance issues completely resolved prior to any certificate placement, your institution avoids the compliance pitfalls that come with false placements. The InsurTrak Advantage In addition, our proprietary InsurTrak platform simplifies insurance tracking and reporting, giving you the tools needed for real-time program oversight, clear audit trails, and automated accuracy to prepare for any internal or external review. InsurTrak also automates payment changes, adds, and refunds, heightening speed and accuracy and avoiding the slowdowns and errors that come with manual processing. InsurTrak’s transparency is unmatched by any other insurance tracking platform — you can see real-time borrower data and a complete borrower history, see any communication including chat logs, and even listen to recorded borrower calls on-demand, right in the system. All of the information you need is at your fingertips — you are never in the dark. Proven Reliability Through Experience Over more than five decades, we’ve built a legacy of reliability, with a commitment to providing consistent excellence. From our implementation team that draws on years of expertise to make every transition seamless, to our highly responsive dedicated Client Executives and Account Reps who know your individual program inside and out, we do everything we can to ensure every partnership is successful. When you work with State National, you gain more than just a portfolio protection provider; you gain a partner whose focus is safeguarding your institution’s long-term success.

SNCares 2024 Recap

Community, Care, and Connection: SNCares Year in Review From grants to giving hands, here are some of the ways we made a difference in 2024 At State National, giving back isn’t just something we do — it’s part of who we are. That’s one of the reasons we created SNCares, a companywide committee dedicated to service and philanthropy. Over the past year, we’ve had the privilege of partnering with dedicated organizations and contributing to meaningful causes that uplift our communities. From grants and donations to hands-on volunteering, our dedicated team members embraced hundreds of opportunities to make an impact. The stories shared here are just a glimpse of the meaningful work we accomplished together, both as individuals and as a company, throughout the year. We hope you enjoy this snapshot of the many ways we came together in 2024 to make a difference and help create a brighter future for those around us!