Enabling Lenders to Monitor Credit Insurance Policies across a Portfolio of Borrowers
Today, most lenders rely on borrowers to manage and report on their credit insurance policies. In some cases, where the exposure is large, lenders tend to manually monitor the status of the policies during monthly reconciliation or at annual or biannual audits.
- More than 50 percent of credit insurance claims are rejected due to filling errors or untimely filing.
- 40 percent of insurance limits get canceled as a result of negative or lack of information.
- 45 percent of the time spent to administer the policy goes toward managing the coverage list, and 25 percent goes toward claims and collections filing.
It is becoming increasingly challenging to manage a credit insurance policy or to gain confidence in the effectiveness of the coverage, resulting in direct and indirect costs for the lenders, such as:
- Bad debts where credit protection has failed
- More administrative work of limit requests, rejections, denials, and cancellations
- Filing and monitoring claims that add to the daily work of the account executives
T.R.U.S.T. ™ Highlights
- Holds details of all policies
- Provides ongoing monitoring of all exposures
- Provides immediate notification of any change
- Monitors the claim process
- Monitors specific debtor credit limits