March 2024 Newsletter

Upcoming Industry Events

March 3-7

Governmental Affairs Conference - Washington, DC

March 5-6

WI CUL Collections Conference - Greenbay, WI

March 10-15

CUES Execu/Summit - Jackson Hole, WY

March 11-13

NAFCU Strategic Growth Conference - Savannah, GA

March 14-17

CU Conferences' Credit Union Spring Training Conference - St. Petersburg, FL

March 18-22

NAFCU's Regulatory Compliance School - Arlington, VA

March 19-21

CEO Executive Dialogue - Bonita Springs, FL

March 21-24

CU Conferences' Credit Union Spring Training Conference - Scottsdale, AZ

Industry News

Is Auto Insurance Keeping House Payments High?

The surge in auto insurance prices, particularly a 21% increase over the past year, is contributing to a broader economic impact. This spike is a key factor in the disparity between the Consumer Price Index (CPI) and the Federal Reserve's preferred Personal Consumption Expenditures (PCE) indicator. State-level regulatory changes, allowing insurers to increase premiums, are seen as a potential driver for this disparity. The analysis anticipates that insurance rate hikes will likely be widespread across the United States, with projections indicating an average increase of 12.6% in 2024. Factors such as rising motor vehicle maintenance and repair costs further influence these insurance expenses. While some predict a Federal Reserve rate cut in 2024 due to inflation concerns, there are varying opinions, with market watchers suggesting the Fed may not cut rates at all this year, emphasizing the need to avoid repeating the "transitory" inflation mistake of 2021.

Read Full Article

insurancebusinessmag.com

Fitch: Homeowners Insurers' Results to Improve In 2024

According to Fitch Ratings, U.S. homeowners' insurance is expected to see improvement in 2024, driven by substantial price increases and more diligent underwriting practices aimed at managing risk concentrations. Fitch anticipates industry written premium growth to exceed 12% in 2024 as carriers take pricing and underwriting actions to enhance performance. However, challenges persist, particularly for carriers in generating underwriting gains, depending on their experiences with catastrophic losses. Economic inflation has moderated, but insurers face uncertainty from cost volatility, material shortages, lack of skilled labor, and higher reinsurance costs. Fitch emphasizes the diligence in managing risk concentrations amid the potential for more frequent large convective storm events.

Read Full Article

insurancejournal.com

What Others Are Saying About ISI

"April was absolutely amazing. Prompt, professional, and clear with all her responses. She made a stressful and confusing process very easy and clear while showing her wealth of knowledge. She worked with me through my issues and got them resolved in the best of her ability while giving me a clear timeline and what to expect."

From a borrower of

Point Breeze Credit Union

See what other Raving Fans are saying about ISI!

Celebrating Milestone Anniversaries This Month

We are thankful for our lender partners, who are essential to our continued success! Listed below are those celebrating milestone anniversaries with ISI this month!

Celebrating 5 Years

Education Credit Union

Data/Industry Trends

Car Ownership Statistics 2024

Forbes Advisor conducted an in-depth analysis using the latest data to reveal car ownership rates, ownership costs (including car insurance costs), electric vehicle ownership rates, and the most popular car models in each state.

Read Full Article

forbes.com

J.D. Power Says Drivers Are Giving In to Higher Insurance Premiums

The last quarter of 2023 insurance shopping results began to confirm that consumers are getting used to the idea of higher auto insurance premiums, though slowly, according to J.D. Power.

Read Full Article

repairerdrivennews.com

J.D. Power Quarterly Shopping LIST Report: 2023 Q4

March Holidays, Fun Facts, and Folklore!

When we think of March we think of the first of spring and the return of Daylight Saving Time. Did you know "March" is named for the Roman god of war? Learn more interesting facts, important dates, and early spring recipes here!

Everything you need to know about March

almanac.com

You Are Invited to Play For a Chance to Win a $250 Amazon eGift Card!

The Men's Basketball Tournament season is around the corner and you're invited to play in the ISI 2024 Challenge tournament group for a chance to win a $250 Amazon eGift Card!

Tournament Group: ISI 2024 Challenge

Group Password: PlayBall2024

How to Play

Click on the link above to go to the 'ISI 2024 Challenge' group
Select 'Join Group' which will prompt you to login (if new user, you will need to create a login)
Enter the required group password: PlayBall2024
Submit your bracket after the official tournament bracket release on Sunday, March 17th, and before tip-off time of 12:15pm ET on Thursday, March 21st. Brackets cannot be submitted or edited once the first game in the first round begins on March 21st.

Learn More About How to Play! You will need to login (or create a login) to view this page.

You do not have to know anything about basketball to play! Different autofill options are available to create a bracket.

With Increasing Insurance Premiums, the Accompanying Rise in Deductibles Prompts the Question: Can Borrowers Manage the Cost?

The borrower has insurance, why should you care about the deductibles on their policy?

The higher the borrower's deductible, obviously the more money they must come up with to have their collateral (Home, Auto, Boat, etc.) repaired from damage. If your borrower cannot come up with the funds to cover their deductible, they will not be able to repair their collateral. Upon foreclosure or repossession, the collateral could have unrepaired damage even though the borrower had insurance.

An increased deductible is a sign the borrower is trying to decrease their insurance premium cost, which could be an indicator they are having financial hardships. While this may be an indicator of financial hardship, higher deductibles are also a direct result of how expensive insurance premiums have become.

Should you raise your allowable deductible limit? Possibly, because premiums are increasing, but you should also have a procedure in place to review the loans with a deductible higher than the allowable limit to ensure the borrower can afford it.

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.