October 2023 Newsletter

Upcoming Industry Events

Join ISI at Lending Solutions Consulting Inc.'s Collections Institute, October 17-19

Our President & CEO, Taylor MacCurdy, will host a session on CPI on October 19th at 9am CT (10am ET)!

Registration & More Information

October 10-13

Southwest Lending & Collections Conference - San Antonio, TX

October 11-12

Credit Union Connect - Franklin, TN

October 11-13

Inspire Conference - Atlanta, GA

October 17-19

LSCI's Collections Institute - Schaumburg, IL & Online

October 19-20

MACCU Fall Conference - Greenville, SC

October 24

Virtual Cyber Security Summit - Online

October 24-26

LSCI's University of Lending - Tampa, FL

October 27

Kids Classic Golf Tournament - Beaumont, TX

Industry News

Car Sales Are Slowing. Car-Listing Websites Are Just Getting Started.

As auto retail is finally shifting from a seller's market to a buyer's market, online marketplaces, such as CarGurus and Cars.com, have become a valuable research tool for shoppers. High interest rates are making consumers choosier and dealers look to online platforms to list their inventory. In addition to subscription fees, dealers can also pay for advertising slots and additional features their potential customers might value, such as online appraisals and loan screening. CarGurus even has a transaction platform that makes instant offers and acquires inventory outright.

Read Full Article

wsj.com

Student Loan Payments Are About to Drain $8 Billion a Month From Consumers, and Spending Will Start Contracting Early Next Year

After being on pause for the past three years, 27 million borrowers will start paying back their student loans this month, draining billions of dollars a month out of their pockets. As a result, consumer spending is expected to slow sharply, turning negative early next year. It is also predicted that student loan delinquency rates will quickly reach pre-pandemic levels or above. Surging mortgage rates and higher credit card spending have significantly boosted household debt. Additionally, credit card and auto loan balances by younger consumers are transitioning into serious delinquency and have jumped past pre-pandemic norms.

Read Full Article

businessinsider.com

Raving Fan Review of the Month

"Tiffany is always so helpful. I very much enjoy working with her to help our members!"

Rave Financial Credit Union

See what other Raving Fans are saying about ISI!

Data/Industry Trends

What the UAW Strike Means for Auto Lenders

The United Auto Workers strike could add to new-car inventory shortages, putting upward pressure on new car prices, further weakening affordability and putting banks' auto lending revenue into question. The length of the strike will determine the ultimate impact on lenders that finance auto loans.

Read Full Article

americanbanker.com

What the UAW Strike Means for Car Buyers

Manufacturers typically don't raise their suggested retail prices during strikes, but dealers will have fewer incentives and could charge above sticker on high-demand models.

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wsj.com

Strike Follows Big Monthly Decline in Used Values

After the second-largest monthly decline ever, the potential for used-car values to climb again is at risk. Alex Yurchenko, chief data science officer at Black Book, believes it will depend on how long the strike will be. If the current strike lasts for months, he feels the used market prices will climb, at least in the short term.

Read Full Article

cutoday.info

October Holidays, Fun Facts, and Folklore!

Let's get into the fall mood as autumn comes into full swing! Learn why this month is called October, which holidays to look out for, what to do in the garden, what to bake in the kitchen, when to see the full Hunter's Moon, and more!

Everything you need to know about October

almanac.com

Auto Insurance Rates Continue to Increase

Premium insurance rates continue to increase for private auto insurers nationwide and are up 11% year-to-date in 2023, according to a report by S&P Global. Thirty-two states have seen a double digit increase in 2023, including:

Texas: 37.6% increase
Arizona, Illinois, Ohio, Tennessee: 30% increase
Nevada: 27.9% increase

From 2018 to 2023, several auto insurers have seen cumulative increases in their rates, including:

Farmers: 30.7% increase
Allstate: 27.3% increase
State Farm and USAA: 24.4% increase

Many of these increases are attributed to inflation, supply shortages, and natural disasters. It does not appear that these increases will slow down anytime soon.

What does this mean for your borrowers?

More borrowers will be rate shopping, looking to reduce their coverage, or may choose to forgo auto insurance all together. We are seeing and predicting an increase in borrowers who choose to let their auto insurance lapse because they simply cannot afford it.

Taylor MacCurdy

CEO

[email protected]

704-957-5024

We would be privileged to discuss further, contact us at [email protected].

Connect with Us:

Contact Info:

Phone: 800-749-5440

Email: [email protected]

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.