October 2024 Newsletter

Upcoming Industry Events

October 2-4

HCUA Annual Conference - San Antonio, TX

October 13-16

GoWest MAXX - Aurora, CO

October 21-25

NAFCU Management and Leadership Institute - Annapolis, MD

October 22-25

SHIFT Lending & Collections Conference - Oklahoma City, OK

October 25

Kids Classic Golf Tournament - Beaumont, TX

October 28 - 30

CU Reality Check - Atlantic City, NJ

October 29-30

Wisconsin Credit Union Connect - Appleton, WI

Industry News

Mercury Insurance Reveals Which Really Costs More - EVs, Hybrids, or ICE

While EVs may offer savings on fuel and require less maintenance than ICE vehicles, their insurance premiums are typically 20% higher. This is due to the higher cost of EV repairs and replacements. Over time, as more data becomes available and adoption increases, these premiums may decrease. Hybrids, which don’t need home charging and have better fuel efficiency than ICE vehicles, are a solid option for those not ready to transition to an EV, though hybrid batteries will eventually need replacement.

EVs have lower routine maintenance but may require upfront costs for home charging setups. Hybrids serve as a practical middle ground, offering fuel efficiency and a reduced carbon footprint without the additional costs tied to EVs. Ultimately, the decision depends on personal budget, preferences, and driving habits.

Read Full Article

insurancebusinessmag.com

Home Insurance Costs Surpass Inflation, Leading to Record Shopping Rates

Homeowners and renters insurance costs have surpassed inflation and auto insurance increases, driving more customers to shop for new policies. The JD Power 2024 US Home Insurance Study reports a record 6.8% of homeowners are now shopping for new insurance, up from 5.9% two years ago. High rates are the main reason, with 37% of customers facing rate hikes likely to seek alternatives.

Despite the shopping increase, only 2.2% switched insurers. Bundling home and auto policies has also declined. Clear communication from insurers about rate hikes can reduce customer dissatisfaction and the likelihood of switching. Chubb and Erie Insurance lead the rankings in homeowners and renters insurance, respectively.

Read Full Article

insurancebusinessmag.com

What Others Are Saying About ISI

"ISI provides world class service in everything they do. Anytime we have questions, concerns, or just need a more complete explanation on something, I know I can call Tiffany and get everything resolved. She goes above and beyond on every call to ensure that the success of the credit union. I would highly recommend ISI to anyone!"

Mark McCracken, Lending Manager

PWC 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 15 Years

Duke University Federal Credit Union

Data/Industry Trends

As Indirect Lending Falls, So Goes the Auto Market Share

Credit unions have reduced indirect auto lending due to tight liquidity, causing a significant drop in their market share. Indirect loans, which once drove growth, comprised 55% of vehicle balances by mid-2024, but auto loan growth has since turned negative. After expanding indirect lending in 2022, many credit unions shifted to direct lending as liquidity tightened. As a result, their auto market share fell from 24.5% in 2022 to 16.1% in 2024, while captive lenders regained ground. This trend poses challenges for credit unions, especially with potential Federal Reserve rate cuts ahead.

Read Full Article

creditunions.com

Mortgage Rates Plunge to 2-year Low

After years of high mortgage rates, rising home prices, and low inventory, the housing market is showing signs of improvement. With inflation nearing the Federal Reserve’s 2% target, mortgage rates have dropped to 6.15%, their lowest since September 2022. This decline offers potential buyers a more favorable environment, but there's uncertainty over whether to lock in these rates or wait for further cuts. While current rates are historically low and could help avoid future competition, buyers should weigh their options and compare lenders to secure the best deal.

Read Full Article

msn.com

October Holidays, Fun Facts, and Folklore!

October brings a crisp breeze, colorful leaves, and the cozy feel of autumn. See what this month holds with various holidays, recipes, and more!

Everything you need to know about October

almanac.com

Recent Highlights

Here are a few photos from our company event at Main Event!

Make your Borrowers Aware that Homeowners Insurance DOES NOT cover Flood Loss.

You have made a loan securing collateral located in a flood zone, it is standard that the Financial Institution requires flood insurance covering the risk that a flood could damage the property resulting in a financial loss for the borrower and the lender.

Has the Loan Officer clearly informed the borrower why they must carry flood insurance? Does the borrower clearly know that homeowner's insurance does not cover losses from a flood?

It is likely the flood zone maps will be redrawn after the impact of Hurricane Helene. Make sure you have a process to monitor the properties securing your loans for the life of the loan. Also make sure that you are tracking the borrower's proof of insurance when they are in a flood zone.

One of the biggest lessons to take away from the destruction caused by the recent floods, is that flooding can happen even when the property is not located in a flood zone.

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.