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Innovation and Client Experience

We define success by more than financial outcomes — we consider the quality of our relationships with our clients to be just as, if not more, important. Our high NPS score is due to State National’s culture, which is built around technological innovation and customer experience.

Innovation and Customer Experience

The Pillars of State National Culture

With 2020, a year like no other, finally behind us, I — like many of you — am excited about what 2021 has in store.

As an eternal optimist, I am expecting great things in the year ahead. However, I’m also a pragmatist, and I know that expecting is only half the task. Looking forward realistically requires reflection on what has come before.

Taking a good hard look at past performance is essential, whether you’re talking about personal success or a company’s success.

At State National, we define success by more than financial outcomes — we consider the quality of our relationships with our clients to be just as, if not more, important. Building lasting, solid relationships has been at the core of our business for almost 50 years.

That’s why it’s essential for us to reflect back on our partnerships each year to assess how successfully we accomplished that mission. We have several metrics we use to do this, and many are built directly into our business model, from our Annual Client Survey of Service Quality to our Net Promoter Score (NPS).

And although those scores have continued to rise year over year, we know that simply patting ourselves on the back and resting on our laurels won’t cut it. As long as there is ANY room for improvement, we want to find those opportunities and capitalize on them.

Drilling Down Into Marketplace Perceptions

To that end, in 2020, we wanted to take a deeper dive into understanding how we are perceived not only by our clients, but also in the greater collateral protection insurance (CPI) market. This goal led us to a partnership with the Mays Business School at Texas A&M University, whose team surveyed a variety of stakeholders in the marketplace — not just our clients, but also those who currently use another provider.

Overall, the results reflected our prominence in the industry and largely validated what we already knew. It was great to see that lenders who are familiar with CPI recognize that State National’s commitment to innovation has led to us having the most advanced technology available — and by quite a large margin. We also ranked higher in the areas of service speed and borrower communication.

To be completely transparent, we are so proud of the superiority of our technology and the continual, substantial investments we’ve made when it comes to innovation that we’ve talked about it a lot! For years, our messaging has highlighted our technological advances and innovations in CPI delivery.

Many of our marketing efforts as a company have revolved around telling the story of how our AI robots, VeriTrak processing system, and other innovative solutions make our programs tops in terms of speed, accuracy, and ease of use. And while that is all true, it means we may have neglected to tell another story that is just as important, and frankly, just as impressive — our service story.

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

More Benefits With Less Effort

Because our technology IS so seamless, our programs don’t require a lot of hand-holding. Our users have a dedicated Client Executive who is always available to provide whatever service and answers they need — but because the overwhelming majority of transactions go very smoothly, they don’t have to contact their CE very often outside of routine visits. In other words, it’s one thing to say that you were able to call up a service provider and they handled your problem for you, and it’s another thing to have things work like clockwork and never have had a problem in the first place.

We, internally, know beyond a shadow of a doubt that we provide better overall service than our competitors. It’s just a fact. We know it because we hear about it from clients who have transferred from other companies — including those who were with us, switched to another provider thinking “they all offer the same thing,” and then switched back after they quickly realized how untrue that really is.

We know that recorded calls immediately on demand in InsurTrak are not the same as having to make a specific request for a call record and then wait weeks to receive it. We know that offering our clients a turnkey text messaging program at no cost to them is not the same as giving them a 3rd party referral and a loan file and letting them handle it themselves. These are just two examples of how State National goes the extra step at every step.

We also know it because of our world-class Net Promoter Score of +86 that ranks us among companies known for their stellar service, like Amazon, Apple, and Tesla. And that score went up again for the fourth year in a row — during a pandemic!

True Sky & State National: Technology Partnership Enhances Member Experience WATCH THE VIDEO

Always Here for You, in Both Good Times and Difficult Times

Speaking of COVID-19, I am happy to say that our business partners gave their Client Executives an overall score of 4.9 out of 5 for how accessible and helpful they were in guiding their institutions through what was a difficult year by any standard. Our clients told us directly that our flexibility and expertise helped to provide them with a proven, stable, and reliable program in a time of uncertainty.

I know this may all sound like a lot of braggy self-promotion. But based on what we know to be true about actual service delivery, we deserve to be braggadocious! In the words of our boisterous and exuberant Executive VP of Sales, John Pearson, “I just don’t understand how we don’t have ALL the business!” In 2021 we are determined to shatter the myth that all CPI providers are the same, and will work to highlight our many distinct differentiators and exclusive benefits. When it comes to portfolio protection, State National is simply the best in the business.

That’s our commitment to ourselves, to our clients — and to our future clients. Thank you, and I wish all of you the best in 2021 and beyond.

Jeremy Clark
Jeremy Clark
Sr. Director, State National

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Now, more than ever, it is critical to protect your auto loan portfolio with GAP Vehicle values have been at historic highs for the past year If you considered purchasing a vehicle this summer, you likely experienced some degree of sticker shock. New and used vehicle prices skyrocketed earlier in 2021 and are only now showing signs of a slight slowdown. How did we get to the point where Edmunds.com reported the average trade-in value of used vehicles was up 75.6% Year-Over-Year (YOY) in June? Simply stated, it all began last year. The manufacturing shutdowns of early 2020 left dealers with low inventory levels as shelter-in-place orders lifted and consumers, armed with stimulus funds and a desire to spend, went auto shopping in droves. The resulting low dealer inventories meant that would-be new car buyers were often forced to consider used vehicle options instead. Both new and used vehicles prices started rising in response to this unusual surge in demand. Despite seeing some stabilization of vehicle pricing in late 2020, things took a turn for the worse this year due to the global shortage of microchips. According to TrueCar, a Consumer Reports partner, there still remains an inadequate allocation of microchips for automobile manufacturers, exacerbating the inventory shortages that began in 2020. With inventory down as much as 50% in some areas, willing and able consumers are paying significantly more, with 20% of all new car purchases in May 2021 transacting at amounts above MSRP. This phenomenon has not been limited to new car purchases only — CNBC shared earlier this month that the average price of a used vehicle was up 21% YOY with a 10% increase from Q1 2021 to Q2 2021. What does the future hold for car values? July witnessed a slight reduction in the rate at which vehicle prices were increasing YOY. However, Carvana’s CEO, Ernie Garcia, warns that the cost of used cars will not normalize until manufacturers can produce inventory at pre-2020 levels. Supply chain challenges are likely to cause “some lasting” impact on used car prices, said Garcia on an August 6th CNBC’s Squawk Box. Black Book, in their 2021 Vehicle Depreciation Report, paints a slightly less optimistic picture, projecting “residual forecasts to return to pre-COVID 19 valuation levels in 3 years.” How will this valuation normalization impact lending portfolios? For a variety of reasons, many consumers found themselves paying in excess of MSRP or NADA for a vehicle over the past 18 months. This reality will not change overnight — it will take the automobile manufacturers replenishing and maintaining inventory levels on a consistent basis for prices to normalize. Whether that be in 2022, or in 3 years as predicted by Black Book, the reset of vehicle valuations has the potential to negatively impact your auto loan portfolio. Black Book’s annual vehicle depreciation rates averaged approximately 13% for each of the 9 years prior to 2020, when it dropped to just 2%. As vehicle valuations fall back in line with more historic depreciation models, loans already on the books as well as loans written through the remainder of 2021 will reflect inflated sales prices. In the event of a future theft or total loss at a time when vehicle values are back to pre-COVID-19 levels, primary carrier Actual Cash Value (ACV) settlements will result in unprecedented deficiency balances. And that is where GAP can help. Essential protection for you and your borrowers GAP has always been an important risk management tool. However, in today’s economy when vehicles are still selling above MSRP or NADA, it is especially important to lenders and borrowers alike for collateral to be protected against the changes in valuation expected over the next several years. Private Passenger Auto carriers settle total loss claims based on the ACV of the vehicle immediately prior to the loss, regardless of the original sales price. Inflated sales prices mean inflated loan balances on the date of loss, resulting in increased deficiency balances — the exact thing GAP is designed to protect. Not only will your potential charge-offs be reduced with GAP protecting your collateral, but your borrowers will also be better positioned to finance their replacement vehicle without the burden of having to satisfy a large deficiency balance on their original loan. How State National's GAP is different The State National GAP product provides unparalleled flexibility in the marketplace, primarily given our unique position as the direct sales force, underwriter, and program administrator. With options to protect amounts up to 150% of MSRP or NADA, you won’t need to worry about future deficiency balances resulting from today’s extraordinary market conditions. Additionally, you can rest easy knowing your pricing is not inflated to cover agent costs or, worse yet, that you will be part of an across-the-board rate adjustment because another lender’s program is not performing as expected. If you’re looking for the most efficient GAP claim submission process (it’s true — we really do not require any supporting documentation to initiate a GAP deficiency balance claim) and fastest claim settlement time (2 to 3 days, on average), isn’t it time you consider State National for your GAP Program? Contact us today to start protecting your consumer loan portfolio from the effects of inflated auto prices — driving a more positive experience for you and your borrowers.     Contact us today to receive more information about GAP from State National. Francine Gagliano, State National Director of Client Services 817-265-2000 x1247 or fgagliano@statenational.com

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State National Employees Crowdsource to Give Their Company Blog a Name When we launched our State National blog in 2020 as part of our company’s newly redesigned website, we had a few goals in mind: To provide valuable thought leadership and educational content that could be of help to our clients, potential clients, and anyone else in the industry whether they ever became a client or not To add even more transparency (one of our main core values) around the way we do business To help others in the industry get to know more about the thoughts and insights of some of our experienced subject matter experts and assist in building relationships To share more about the company culture we’re very proud of with those in the industry and with potential future employees And of course (speaking of transparency), because we are in business — to share benefits and features of our products and services and show credit unions, banks, and finance companies how we can serve them and help them be more profitable and successful The blog has been a great success so far, and we’ve received really positive feedback about the value people are receiving from our content — thank you!

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