Insurance can be complex. Turn to our blog for up-to-date, relevant content to help you make the best decisions for your financial institution. With expert knowledge from seasoned industry professionals, we simplify insurance topics so you can get back to business.When evaluating a Collateral Protection Insurance (CPI) program, it's important for lenders to look beyond the surface. Understanding both the hard and soft costs, as well as the potential returns, is crucial for maintaining a healthy and successful program. Here's how you can ensure you're getting true value.
Leveraging Partnerships for Better Outcomes
The Dual Advantage of Collateral Protection Insurance: A Closer Look at Borrower Benefits Collateral protection insurance is most commonly thought of as a protection for lenders. And that is certainly correct — a well-run CPI program is an undeniably powerful risk mitigation tool that helps lenders safeguard their auto loan portfolios from loss. It's one of the best ways credit unions, banks, and other financial institutions can reduce financial risk associated with lending.
Worried the CPI on a borrower’s loan might increase the likelihood of default? Good news – it’s actually an opportunity to protect your member.
