August 2024 Newsletter

Upcoming Industry Events

August 6-8

GoWest Annual Executive Event - Stevenson, WA

August 12-16

DCUC Annual Conference - St. Petersburg, FL

August 14-18

National Credit Union Directors Conference - Lihue, HI

August 18-21

CUES Execu/Net - Big Sky, MT

August 20-21

The Exchange (NASCUS) - Denver, CO

August 21-23

VolCorp Forum24 - Nashville, TN

Industry News

Fed Up with Their Car-Insurance Bills, Drivers Shift Gears

US auto insurance customers are increasingly shopping around for new policies, with 50% doing so in the past year, up from 41% in 2021, per J.D. Power. Rising costs are a key driver, with the average annual premium increasing 12% to $2,278. In response, many drivers are raising deductibles and exploring pay-per-mile insurance plans, which can save money based on mileage.

The trend is influenced by higher car prices, costly repairs, and increased theft. Pay-per-mile programs, offered by insurers like Allstate and Nationwide, are gaining popularity, especially among low-mileage drivers like retirees and remote workers. However, these plans often involve tracking driving behavior.

Premiums vary by state, with Florida being the most expensive and Wyoming the cheapest. Rates are expected to rise another 9% on average in 2025. To save, drivers are also opting for higher deductibles and paying premiums upfront.

Read Full Article

yahoo.com

Global Natural Disasters Cause More Than $117 Billion in Economic Losses During First Half of 2024

US severe convective storms (SCS) were the main driver of global natural catastrophe losses in the first half of 2024, contributing significantly to the $61 billion in global insured losses, says Gallagher Re. This period marked the second costliest for US SCS on record. Over the past 18 months, SCS losses exceeded $100 billion, setting a new record.

The first half of 2024 saw numerous billion-dollar loss events, with economic losses slightly below the 10-year average. Insurers covered more than usual, and the period was the warmest H1 since records began. As El Niño fades and La Niña approaches, concerns rise for an active hurricane season, especially after Hurricane Beryl, the first pre-August Category 5 hurricane.

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insurancebusinessmag.com

What Others Are Saying About ISI

"Kendra was amazing and gave me all of the information I needed before I even asked for it! A+++ "

Miranda Jones

Rave Financial Credit Union

See what other Raving Fans are saying about ISI!

Data/Industry Trends

Potential 'Car Crash' Coming in Credit Risk in Auto Market

Brian Turner, president and chief economist at Meridian Economics, warns of a looming credit risk "car crash" in the auto market, with both auto rates and pricing spreads surging since September 2022. Auto delinquencies have doubled, and monthly payments have significantly increased due to inflation and higher finance rates. Turner advises credit union leaders to prepare for potential declines in rates by late 2024 or early 2025, which could heighten credit risk exposure.

Read Full Article

cutoday.com

What's Driving Soaring Homeowners' Insurance Rates?

Homeowners in the US are facing rising insurance costs due to inflation, increased replacement costs, supply chain issues, and legal system abuse, according to the Insurance Information Institute (Triple-I). CEO Sean Kevelighan noted that construction material price hikes have driven up replacement costs by 55% between 2020 and 2022. Natural disasters' frequency and intensity, especially in high-risk areas, and legal system abuses further escalate these costs.

Read Full Article

insurancebussinessmag.com

August Holidays, Fun Facts, and Folklore!

It's the hottest month of the year! See who August is named after, gather summertime gardening tips, and indulge in this month's recipes.

Everything you need to know about August

almanac.com

Mid-Year Insurance Program Health Check: Review and Adjust Your Financial Goals

As we reach the midpoint of the year, it's an excellent time to review your portfolio insurance goals and assess your progress. Here are some key steps to ensure you remain on track for a successful year:

Evaluate Program Performance: Examine your premiums generated compared to losses paid, losses paid by type, which portion of your portfolio is contributing to the losses paid.

Analyze Market Conditions: Stay informed about current market conditions and economic indicators. Adjust your risk assessments and lending criteria to navigate challenges and seize new opportunities. Longer term loans and increasing loan balances will and are having impacts across all types of insurance programs.

Engage with Borrowers: Reach out to borrowers to check in on their financial health, including reminding them of the requirement to provide proof of insurance as well as the additional products and services your financial institution has available for them. This engagement can help you anticipate potential issues early, reducing the risk of defaults.

Revisit Financial Projections: Update your insurance needs projections based on delinquency ratios, loan credit quality, borrower's ability to pay, just to name a few of the factors.

ISI provides comprehensive and unbiased reviews of your collateral insurance protection program. Whether your portfolio is insured by a force-placed program or a blanket program, we provide a detailed analysis on how you can further utilize your current program, ensuring its long-term success.

Click to Start Your Program Analysis and Review!

President

ISI

tmaccurdy@isicpi.com

704-957-5024

Connect with Us:

Contact Info:

Phone: 800-749-5440

Email: management@isicpi.com

Website: insurancesystemsincorporated.com

ISI is an administrator of Collateral Protection Insurance (CPI) and Blanket Lenders Single Interest (BLSI) for financial institutions. We provide insurance, lending, and marketing products to the financial institution marketplace. Our mission is to deliver the best products and services in the industry through responsive service, comprehensive coverage, and advanced technology. We combine the lender's vision and our proven plan to create a portfolio that matches the lender's needs for a successful program and partnership.