Thinking About Alternatives to CPI in Today's Economy?

At the start of each new year, many of us pause and reflect on our actions and accomplishments over the past 12 months. Here at State National, we’re doing the same and taking a moment to recognize and appreciate the impact that SNCares, our charitable committee, has made in the lives of those we've been fortunate enough to support throughout 2023.

Each year, State National’s SNCares charitable committee selects local nonprofits to assist as part of Markel’s Community Grants initiative. To help determine where grant funds should be allocated, the committee periodically surveys employees about the causes and organizations that matter most to them to determine focus areas for grant distribution.

At State National, we don’t see client relationships as a static part of our business; they’re a dynamic, evolving element that helps both our organization and our clients' organizations move forward. Our commitment goes beyond mere transactions; prioritizing and nurturing healthy client partnerships is vital to us, as they serve as the foundation of our company.

The Hidden Dangers of Abandoning CPI Over the past 50+ years we have seen how unintended consequences often surprise lenders who choose to switch their portfolio protection solution from CPI to a blanket policy. For many credit unions, it seems like a good option — until later down the road when both their number of uninsured borrowers AND their premiums keep rising. Without the monitoring of the loan portfolio that comes with CPI, it has been shown time and again that the number of uninsured borrowers will increase and the credit union’s losses will grow larger. To show how this plays out in a real-world example, one of our current clients* recently worked with us to run a test on their portfolio after they decided to move to blanket coverage, by continuing to track their borrowers' insurance status (to ensure their privacy, we'll call them "Best Lending Institution").