July 2023 Newsletter

Upcoming Industry Events

July 7-11

NCUMA Summer Conference - Grand Caymen Islands

July 19

LSCU Southernmost Chapter of CUs Bowling Tournament - Miami, FL

July 23-26

Southeast Regional Directors Conference - Memphis, TN

July 23-26

CUFEN Conference - Burlington, VA

July 24

LSCI's Loan Decisioning Bootcamp - Online

July 26

LSCI's Teller/FSR Workshop - Online

Industry News

Growing Interest in Short-Term Lease Takeovers

The data from Swaplease.com, a website that matches lease holders who want to exit a lease with buyers interested in picking up a shorter-term lease (and currently, likely with lower financing rates), is showing more consumers are looking for a lease to buy out or for someone to buy out their own lease. The increase in lease buyout leads so far in 2023 is higher than they saw in 2021 or 2022.

From a lending standpoint, residual values - the projected value at the end of the lease term, are more important than the interest rate. Leasing equations and residual value projections play an important role in how much a lender makes off their lease portfolio.

Read Full Article

cutoday.info

Credit Union Loans Fueled by Growth in Auto Sales, Home Equity

As many credit unions predicted, 2023 brings solid growth in auto loans, home equity loans, and credit cards, and will be sustainable for some time. Auto lending increased by 18%, mortgages increased by 16.5%, and credit card balances grew by 15%. Members are now seeing auto dealer inventory growth and taking advantage of the opportunity to replace older vehicles. Rising interest rates have slowed asset sales, creating a tight housing market with low inventory, but mortgage lending has been better than expected in the higher rate environment. The lending environment could soon become a challenge since higher rates will slow down financing opportunities in 2023 and 2024.

Read Full Article

americanbanker.com

Car Insurance Rates Are Soaring With Little Relief in Sight

State regulators are doing little to stop the steep increases on auto insurance rates, including states with consumer-friendly laws and the power to veto increases. The loss trends have increased so much causing insurers to suffer big losses. Last year, they lost on average 12 cents for every dollar of premium written. Premiums are increasing faster than other inflation-hit items and insurers say this is driven by necessity, not greed.

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wsj.com

Raving Fan Review of the Month

“Working with ISI is always a seamless process. Anytime I have any questions or concerns I can reach out by email or phone and my representative is always willing to help. I enjoy working with them and appreciate the partnership we have grown over the years. I would recommend their services to anyone needing assistance with insurance tracking and collateral protection.”

Blaire Bechtel, Business Lending Analyst

5Point Credit Union

See what other Raving Fans are saying about ISI!

Data/Industry Trends

Atlantic Hurricane Season Off to an Early Start as Two Named Storms Form

Tropical storm Bret and Cindy are the first case of two named storms in the tropical Atlantic in June since record keeping began. The historic event signals an early and aggressive start to the Atlantic hurricane season, whose peak usually runs from mid-August to mid-October.

Learn More

Hurricane Season Has Begun, But Are Homeowners Prepared?

Recent findings from a survey done by the Insurance Information Institute, in coordination with Munich Reinsurance America, Inc., has found most people don't realize the risk and power associated with weather risks.

Learn More

Homeowners Perception of Weather Risks: 2023Q2 Consumer Survey

Read Full Report

July Holidays, Fun Facts, and Folklore!

See the summer weather map and get seasonal advice for a month dedicated to freedom, independence, and celebrations of country and culture!

Everything you need to know about July

almanac.com

Car Insurance Rates are Soaring and Insurance Verifications are Rising.

As the article above discusses, the increased cost for auto insurance is causing more drivers to shop their coverage with other carriers. This is resulting in more drivers cancelling their coverage with their prior carrier and reinstating their coverage with a new carrier. As an insurance tracking administrator, this is resulting in more insurance verifications. When the borrower changes their insurance carrier, they do not realize they need to send a copy of the new insurance to the financial institution. This is resulting in more inquires to the borrower to obtain a copy of their new insurance. We are finding that many of the drivers do not have some of the crucial items required by a financial institution listed on their policy like the lienholder and acceptable deductibles. We are also finding that in some instances, CPI is more affordable than primary insurance. Make sure your staff is aware of your requirements of an insurance policy, so you can assist your borrower if they are contacted by your insurance tracking provider.

Taylor MacCurdy

CEO

tmaccurdy@isicpi.com

704-957-5024

We would be privileged to discuss further, contact us at management@isicpi.com.

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.