The change of season is definitely here, and it’s the perfect time to take a deep breath, recharge your batteries and renew your focus. For lending institutions, it’s an opportune time to evaluate annual goals, reassess budgets and consider your insurance planning. Additionally, you will want to have an insurance agent who diligently shops the market and ensures you are getting the best product for the best price.
Why do you need to look at your insurance agents/agencies?
Just as a football coach continuously evaluates his coaching staff and roster to make sure he is optimizing his team for success, it’s imperative that as a lending institution you make sure you are working with the best insurance vendor who can get you the best results. Over time, insurance offerings and pricing will change, especially in highly regulated markets, so you want a vendor who is on top of that.
Why is it important to explore multiple carriers?
The marketplace is dynamic. Whether you have a new agent or someone you’ve worked with for a decade, it’s imperative that they have relationships in place with multiple insurance carriers to help you access the best products for the best price. Some might say “it is what it is,” and stick with same insurance carrier they have always had. But just as a football coach makes a coaching change in an attempt to achieve better results, it can be cost effective for a lending institution to re-evaluate their insurance programs and pricing. We were able to save one Western Pennsylvania bank $80,000 annually by taking their rates out to market.
A diligent insurance vendor will work to ensure you match or beat your current rates for hazard coverage, mortgage impairment coverage, blanket LSI coverage or any type of insurance. A benefit of working with a Managing General Agent (MGA) is that he or she will have relationships with multiple insurance carriers and be able to explore the market to give you the best option and ensure you’re not overpaying for insurance.
The bottom line?
It may be possible to have a better insurance policy with higher limits for a lower price, but you’ll never know if you don’t let anyone go out to market for you.
When’s the last time you took your products out to market? Let Lenders Risk find the best options for you. Call 1.888.600.4436.