SNC Spotlight

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I Don’t Understand Why We Don’t Have All the Business!

I have said it a million times, and I will say it once more — I don’t understand why we don’t have all the business! Our blog team told me not to sound like a salesperson in this post, but I am the EVP of sales. What were they expecting from me? I’ve been selling State National’s products for over 20 years because they’re the best, so why shouldn’t I say it? It’s just a fact.

 

I'm shouting it from the rooftops!

I’ve never been shy about telling anyone who will listen about the significant and game-changing differences between us and other providers. Sometimes I’m loud about it, and I guess it sounds like I’m bragging. But in the famous words of Muhammad Ali, “It’s not bragging if you can back it up.”

So let me do just that. I will tell you exactly why our service makes your life easier and your business more profitable, and then you can decide for yourself.

So go ahead and ask, “John, what makes you so sure your company is the best in the business?”

 

Why is State National better for your institution that all other portfolio tracking and insurance providers?

Just a few of the reasons why...

Our goal is an outstanding client experience in every way. That translates to better-designed programs, better business services, a better borrower experience, and more money for you.

We’ve set up our whole business model around the philosophy that when you succeed, we succeed. That’s why State National works so hard to offer superior service, and to go the extra mile for you without taking shortcuts. Allow me to break each of these points down further.

 

 

We own the whole thing from soup to nuts.

Plain and simple. Nobody out there, besides us, manages their programs from beginning to end. What does that mean for you? For starters, State National can work with you to offer a modified program customized to fit your financial institution’s needs.

It also means that, unlike my competitors, we are the underwriter. This gives us unmatched flexibility to customize to meet your institution’s specific needs. On top of that, it also means we are the ones responsible for claims payments. With other providers, the responsibility and control fall onto the underwriter, not them. When claims go unpaid, they pass the blame — “Sorry, if it were up to me we would have paid your claim, but it wasn’t my decision.”

With State National it’s just the opposite — we are here to help your business and your bottom line. That means we don’t try to pass the buck. We actively seek to pay your claims whenever we can. We don’t send you to 5 different people for 5 different coverage claims; you deal with one empowered expert who will remind you of your policy coverages if you forget to ask, and actually coach your staff to maximize how much you’ll get. And when a claim can’t be approved, we can tell you exactly why. You deserve to know. Other providers are limited in what they can guarantee because much of the process is out of their control. Because we have more control and decision-making authority than the other guys do, we can offer better service and transparency.

 

 

Our loss ratio stays consistently in your favor, which results in more money for you.

Our loss ratio stays more consistent because we put several systems in place to ensure loss ratios most often fall in favor of the financial institution, not the other way around, and also that they stay more consistent for longer periods of time than our competitors.

For starters, we offer ongoing training for your new and continuing employees who work with us. Because what happens when there is turnover in your business? Unfortunately for financial institutions not using State National, a change in roles combined with a lack of training from your portfolio protection provider can result in unpaid claims from a lack of filing, or not knowing how to file to get maximum benefits. That unclaimed money goes right into the pockets of the agent. Not with State National — we want your staff to know how to get the best value for you.

We also have more automated services in place with our claims process. We make it easier than ever, paying some claims in just seconds using AI-based InstaClaim. Our program has been developed to ensure that more often than not your loss ratio will be where it is providing the most value for your financial institution. Our claims payment calculation on full retail value favors the lender more than any other program available today.

Do you want basic transportation or a premium ride?  See what our portfolio protection program offers that others don't. 

 

We offer the best service to your borrowers.

We are the Cadillac of the industry. When you choose us as your service provider, you are choosing a higher-value program. State National gives you a lot more for your dollar, starting with eliminating friction and borrower noise. We understand that how we represent you to your borrowers is very important, and we work to cater to their needs as an individual. And with today’s heightened consumer expectations, you have to be even more sensitive in your communications, because in today’s world an aggravated borrower has many options and platforms for leaving negative feedback

We treat each borrower as an individual, customizing our messaging for their particular needs and stage of using our service. Part of that individualized service includes over 15 targeted, borrower-friendly videos that describe their specific situation and what they need to do next. We communicate with borrowers with a lapse in coverage through mail, email, and text. We even reach out to a borrower’s co-signer. Borrowers can either call us to speak to someone, upload their insurance electronically via online or mobile, or text or email without ever talking to a person. But if they DO want to talk to someone, our onsite contact center features service others can’t match with their non-expert overseas reps, to resolve any borrower issues quickly and satisfactorily, with one-call resolution. We understand your borrower’s time is valuable and want to make it as easy as possible for them to update their insurance.

Once someone has a policy in place, we offer one-on-one care. Recognizing that at this point a borrower may be a little out of sorts, we avoid automation and switch to a direct phone call with one of our wonderful contact center teammates, who will answer any of their questions, nurture them through the process, and offer solutions.

 

How We Reduce Borrower Noise

HubSpot Video

 

 

At the end of their call, we ask borrowers to take a survey to measure their satisfaction and see if their issue was resolved. We are the only service provider in our industry that measures the quality of our calls, and then provides the results so our clients can see the quality of service their borrowers are receiving. Did we treat them with respect? Did we provide the information they needed? Were we transparent? We want to know. It might sound like a small thing, but a lot of these small things add up to a huge impact.

Better yet, because we own the whole process from start to finish, we not only record our phone interactions, we make them immediately available. There’s no need to request the recording of a call, wait for a response, wait for your request to be approved, and then wait to get the recording days or even weeks later — you can access all phone interactions between State National and your borrower instantly, without any hold-up, with one click through our custom portal, InsurTrak. We become part of your collections team, giving them real, actionable, and timely information.

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We proactively avoid friction on claims.

Part of the stereotypical insurance business model is to stall on paying claims, and for a company to try to avoid paying whatever they can. We turn that stereotype on its head. We bend over backward to be sure our clients get every dollar they are entitled to, even if it means telling our clients they’re actually entitled to more than they thought they were on a claim. We coach your staff to maximize the benefits you can get from us. Why would we do that? Sounds dumb on our part, right? No, it’s actually very smart. It’s one of the things that makes us a true partner and not just a vendor.

We want to build a relationship with you for the long term. That means it’s all about trust, transparency, and having your back. We know that making a quick dime in the short term is nothing compared to building a lasting, win-win partnership that benefits everyone involved.

 

We invest in superior technology.

With our portfolio protection product, we have a plethora of automated components on the front end to keep your information as real-time as possible, starting with our proprietary InsurTrak platform, the industry’s only system built from scratch specifically for portfolio protection insurance tracking, claims, and reporting. Where other providers have adapted technologies meant for other products and processes, InsurTrak is designed for maximum ease, speed, and transparency. When clients come to us from other providers, one thing we hear over and over again is how much better in every way InsurTrak is than what they were using before.

We’ve also invested in our WRAP (Web-Based Robotic Automated Processing) process, which uses artificial intelligence and software robots to update your borrowers’ insurance data by scanning insurers’ websites. WRAP can handle thousands of inquiries and updates in seconds, with no human intervention and with lightning speed and accuracy — and all done without ever having to contact the vast majority of your borrowers, which means less noise.

 

How State National's Robots Work for You

HubSpot Video

 

And we keep improving WRAP. Now our bots are also working to proactively search for new policy information on new loans and cancellations before ever notifying a borrower — and the results have been incredible. We’ve also got another AI-based system rolling out soon that will further revolutionize the service we provide to our clients, for even better results.

 

We simply offer the best service to financial institutions.

I sometimes get frustrated when I hear some of the things other salespeople say about how “Oh, yeah, we have that feature or benefit too” when what they have is not actually the same at all. Or they’ll talk about having specialized analytics, but somehow nobody can ever explain how those work. We don’t believe in smoke and mirrors. We can back up everything we say. I always encourage financial institutions to ask their portfolio provider for evidence and the details behind each of their product offering claims. Read the fine print. It is easy for a service provider to say they offer the same services, but do they really if the quality is not the same?

For example, as I shared earlier, we also offer a text program in addition to phone calls, email, and mail notifications when there’s a lapse in coverage. Unlike other providers, we do not just refer you to a third-party text provider. We do the work for you, setting up and managing your text program so it’s effortless for you and your staff. Not to mention, unlike others it’s at no cost to you for the life of your program. So when other providers say, “Oh, yes, we offer a texting program too,” they’re not even talking about the same thing.

 

State National Texting — for Faster Borrower Action! 

HubSpot Video

 

 

I have so many other examples — just ask me about our follow-up and request acknowledgment and personal touch, and I will get on a roll!

When I sit down and talk with prospective clients and ask them questions about their program, I listen for what’s important to them, what they like about their current program, and what they don’t like. And I can honestly say that if what they currently have is really the best program for them, I would tell them, “Sure, stick with what you have, it sounds like it’s perfect.” But in reality it’s never that way, because State National’s program is so far superior to all the others out there, and 99% of the time I can help them save more money and get better service for both their borrowers and their staff.

Many lenders will tell us it’s the relationship with their current insurance agent that keeps them from changing providers. Now don’t get me wrong, relationships are very important, but in the end the most important factor is the overall effect on your financial institution and your customers. At State National we retain business by providing the best value to our partners — it’s just the icing on the cake that I happen to be a nice guy, too, and that my colleagues and I end up forming solid, enjoyable, and lasting friendships with our clients. Why not have great relationships AND the top-of-the-line product, too?

At State National, our vision is a superior client experience. We have the best portfolio protection products, the best technology, the best components, and the best delivery because we are straightforward. When we tell you, “This is what we have,” we mean it.

Above all, state National has a team of individuals who are truly committed to you — and because of that, I honestly don’t understand why we don’t have all the business!

Want to hear even more reasons why we offer the best portfolio protection service in the business? Reach out to us and get connected. 

 

View Our Latest NPS Score!

 

John Pearson
John Pearson
John Pearson is Executive Vice President and National Sales Manager of State National Insurance Companies, where he is responsible for all aspects of the sales of collateral protection insurance (CPI) to lenders across the country. John works closely with automobile lenders and collectors throughout the country, is an expert in the CPI arena, and is a frequent speaker at various lending conferences. John holds a master’s degree in Industrial Psychology and has held leadership positions in Organization Development and Recruitment as well as Sales and Marketing.

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The Difference Is in the Details: Secure Texting

State National’s Partnership With Solutions by Text Is a Secure Way To Reduce Borrower Noise    When was the last time you wrote or received an office memo? Or had stamps handy to mail a letter? Have you dialed the operator to make a phone call lately? Or eavesdropped on a party line? Some of you may have never experienced these “old school” methods of communication — and although each of these had their charms (eavesdropping on your neighbors over a party line was sometimes just as entertaining as watching drama unfold on General Hospital!) you should probably consider yourself lucky that those days are mostly behind us. Communication has evolved to become faster, easier, and far more convenient over the years, and here at State National we are no stranger to the incredible efficiencies technology has gifted us.     Whether business or personal, emails and texting have drastically altered how we connect with each other and share information. 89% of adults check emails daily and 98% of all text messages are read within three minutes! (When was the last time you checked yours?) Both are instant and can be read and responded to at the convenience of the recipient as opposed to interrupting them with a phone call, which many people report causes them a certain amount of anxiety nowadays. Both email and texting is where it’s at these days, and each have their particular strengths. While emails can provide a little more space to respond at leisure, texts create a sense of urgency. Receiving a communication from another channel also helps reassure borrowers of the authenticity and validity of the message by adding another touchpoint communicating what is needed.   Adding Email Notifications In 2016, State National implemented email notifications to borrowers as part of the notice cycle. This provided a quick and efficient way for borrowers to respond with their insurance information through the MyLoanInsurance.com website or by replying to the email with their insurance information. On average, we saw 23% of borrowers log into MyLoanInsurance.com from the email. Considering that 2% to 5% is considered a good click-through rate for email, this result was an immediate success.   Next, Text Messages Then, in 2019, State National added text messaging to the notice cadence to further increase ease and convenience for borrowers while also instilling an urgency to submit their insurance. Like our email notifications, these text messages have a secure link into the MyLoanInsurance.com website a recipient can effortlessly access from their smartphone — which, let’s be honest, is always inches from their fingertips at any given moment. So far, we are seeing an average of 18% of borrowers log into MyLoanInsurance.com from a text they’ve received and we expect that number to continue to climb. Overall, of those who log into MyLoanInsurance.com from the email or text, over 70% are submitting their insurance!     But Is it Secure? Of course, scams and phishing are unfortunately a reality and very prevalent in the world of emails and texting and, rightly so, have everyone on high alert. Let’s face it, receiving a text asking you to provide your insurance information may cause some hesitation, but then when you receive an email a few days later, you start to think it may be legit. Then you receive the notice in the mail. OK, the recipient thinks, now I know this is my financial institution trying to get ahold of me to get this information. We want your borrowers to feel at ease that their information is protected. That’s why we include your financial institution’s logos on the emails and on the secure MyLoanInsurance.com website. If you’re a client of State National or thinking of becoming one, putting the MyLoanInsurance.com website on your loan documents or even on your website can help reinforce the authenticity with your borrowers.   The Proof Is in the Results So how does all this translate to your CPI program? Well, we have found that clients who utilize our email and texting programs are experiencing an average penetration that is 34% less than before they added these enhancements to their program. In addition, the "flat cancel" rate (the percentage of certificate placements resulting in a full refund) has decreased as much as 11%. That means fewer unnecessary certificates placed and refunds processed — which translates to less work for your staff.   The Difference Is in the Details State National’s texting and email programs are completely free of charge and State National does all the heavy lifting for you. You simply provide us the email addresses and phone numbers associated with the loans and we’ll take it from there — only reaching out to borrowers we haven’t yet received insurance information from. Should one of your borrowers no longer want texts, they can easily reply STOP and they’ll immediately be opted out, with their opt-out immediately reported back to your financial institution. We’ve worked diligently with outside legal counsel and partnered with Solutions by Text, a compliance-first provider of enterprise texting solutions with a proven track record with the FCC, TCPA, FDCPA, CFPB, CTIA, and MMA to ensure that our program is fully compliant. And since there is no advertising of a product or service, our emails are exempt from the CAN-SPAM Act. We continue to closely monitor any and all regulations surrounding these programs so you can keep peace of mind.   See what our partner Solutions by Text has to say about financial services users and texting!   There’s no doubt that the borrowers we serve are enjoying the convenience — and responding to these more modern ways of both receiving and sharing information. Who knows what the future holds for even better communication techniques? Whatever it is, you can count on State National to be ahead of the pack in offering it to our clients!

How to Explain CPI to a Borrower, Part 2: Simple Answers to Common Borrower Questions

CPI expert and Sr. Client Executive Kathy St. Clair shares her insights on how to educate borrowers about CPI and what to say if a borrower has questions about a CPI certificate placed on their loan. In Part 1, Equipping Your Staff, she shared the value of informing borrowers proactively and the multitude of resources and support State National has available to assist you. If you do not know what CPI is, we recommend first reading What Is Collateral Protection Insurance (CPI)?   Borrower Questions Covered in This Article Will I receive a refund once I show proof of insurance? I submitted my insurance, but have not received a refund Can I keep CPI as my only car insurance if I want to? How do I rectify my insurance status? Can this insurance be refunded? While you can redirect a borrower to State National at any time to be helped by one of our friendly, highly trained team members, we want to share the answers to some common questions a borrower may ask so you and your staff feel prepared to answer anything.   Borrower Questions: "Will I receive a CPI refund once I show proof of insurance?" "If I go out and get insurance, can I be refunded for what I have paid for CPI so far?" "Will I still have to pay a premium on my loan each month once I show proof of insurance?" Once State National receives proof of insurance, a refund is quickly processed and sent back to your financial institution. If the borrower had adequate insurance for the time period in question, a full refund will be issued. There may be a charge for any verified lapses in coverage. How quickly we can issue a refund will depend on the agreed-upon process, such as ACH or manual check. The refund is then posted to the borrower’s loan. In many cases, this can be done through an automated process, eliminating any manual administration for your staff. Along with quickly processing a refund, we send a notice to the borrower to let them know that their refund was processed.       "I submitted my insurance — why haven’t I received a refund?" or "Why am I still receiving notices?" This is where InsurTrak can once again come to your aid. If InsurTrak indicates that we have sent a borrower an impairment notice, you can let them know that we did receive their insurance but that the information they sent us was not complete. Through our tracking, we are making sure the borrower provides full-coverage insurance, both comprehensive and collision, with you listed as lienholder. Making the borrower aware of this can help them understand what additional information they need to submit for quick rectification.   "Is CPI considered insurance? I may want to keep CPI because it is cheaper and more convenient than my previous insurance." "Can I keep CPI as my only car insurance if I want to?" Some of our CPI partners have shared that borrowers occasionally ask about keeping their CPI insurance instead of purchasing their own auto insurance. A borrower should understand that CPI is not an equal alternative to car insurance they can buy on their own. By educating a borrower on what CPI is, you can deter them from keeping CPI. CPI is meant to cover only the cost financed by you as a lender — it is intended to protect your loan portfolio, not the borrower. While CPI provides comprehensive and collision coverage on the automobile, it does not cover the driver. CPI will not assist a borrower in covering any damages to another individual’s property. Most states also require drivers to carry liability insurance in case an accident occurs and there is another party or property damage involved.   Not realizing the specifics of their insurance, a borrower with CPI coverage will sometimes return to their lender after an accident or other loss and ask for a copy of the policy. You can let them know that even though the insurance policy is mainly there to protect the lender, and excludes damages outside of their vehicle, if they have damage to their own car they can file a claim so that they will remain in good standing on their loan. If they are not delinquent by more than 45 days, we will accept a claim directly from the borrower to repair that collateral and get them back in the driver’s seat. Please encourage your borrowers to get and maintain their own insurance.     "How do I rectify my insurance status?" "Can this insurance be refunded?" The quickest way a borrower can have a CPI certificate removed is to submit proof of insurance to their lienholder — your financial institution — or directly to State National. We use a variety of methods to collect borrowers’ insurance on your behalf, and we make it as simple as possible for them to comply. Options for borrowers to provide evidence of insurance include calling into our Contact Center, or mailing, emailing, or faxing their Declarations Page to our Service Center. But text and email notifications are the fastest and most convenient way for a borrower to provide us with insurance. Each text and email notification we issue includes a link that takes the borrower directly to our self-serve portal, MyLoanInsurance.com, where they can easily upload a copy of their insurance information. This portal features notice-specific videos walking borrowers through their solutions for verification. Alternately, they can choose to reply to the text or email with an image of their coverage details. Borrowers also have the option to provide us with their insurance company name and policy number, and we'll reach out for verification on their behalf. Our goal with this multichannel approach is to make it as easy as possible for borrowers to submit their information in the way that is most convenient for them.   Informed Staff Deliver a Better Borrower Experience All staff members who handle loans at your institution should have a basic understanding of what collateral protection is doing for you and how it works. We offer ongoing training and resources to your staff members. Your staff should also understand the premise and benefits behind the product — mainly, that it is there to protect your financial institution against uninsured losses. Here are some additional resources to build your knowledge about CPI: Short State National Animated Company Explainer Video What Is Collateral Protection Insurance (CPI)? Understanding the Differences Between CPI, Blanket, and Self-Insurance Remember, your financial institution’s dedicated Client Executive is here to help you with any of your CPI questions or needs!   To read the first article in this SNC Spotlight series, visit Part 1, Equipping Your Staff  

How to Explain CPI to a Borrower, Part 1: Equipping Your Staff

At State National, we recognize that collateral protection insurance (CPI) is not a term every borrower knows. Here, CPI expert and Sr. Client Executive Kathy St. Clair shares her insights on how to educate borrowers about CPI and what to say if a borrower has questions about a CPI certificate placed on their loan. If you do not know what CPI is, we recommend first reading What Is Collateral Protection Insurance (CPI)?