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 significant, lenders will manually monitor the status of the policies during monthly reconciliation or during annual or biannual audits.
Challenges lenders face when monitoring credit insurance policies manually:
- More than 50% of credit insurance claims are rejected due to filling errors or untimely filings.
- 40% of insurance limits get canceled as a result of negative or lack of information.
- 45% of the time that is spent administering policies goes towards managing the coverage list, while 25% goes towards claims and collections filings.
It is becoming increasingly complicated to manage credit insurance policies manually, and this weakens 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.™ solves these challenges by:
- Centralizing the details of all policies in one place
- Providing ongoing monitoring of all exposures
- Delivering immediate notifications of any policy changes
- Monitoring the claim process and specific debtor credit limits