This article was originally posted on CUInsight.com
In the dynamic landscape of financial services, the convergence of technology and customer empowerment is reshaping traditional practices — especially when it comes to insurance tracking. Insurance tracking is a crucial component of risk management for financial institutions. By continuously monitoring borrowers' insurance status, lenders ensure that collateral remains protected, reducing the risk of uninsured losses. Effective insurance tracking programs employ a combination of digital platforms and strategic communication to streamline the verification process and improve borrower responsiveness.
One such evolution is the adoption of borrower-centric insurance tracking — an all-encompassing approach that protects your loan collateral and your borrower relationship, simultaneously. Keep reading to explore 4 strategies to keep your borrowers at the center of your risk management program.
- Encourage Borrower-Led DIV
Digital Insurance Verification (DIV) is a revolutionary approach that enables borrowers to effortlessly verify their coverage after their loan closing simply by using their mobile phones. This transformative method not only streamlines the insurance verification process but also empowers borrowers to actively participate in ensuring their coverage compliance.
Digital platforms can provide a paperless follow-up to mailed notices and encourages a seamless, borrower-led insurance verification 24/7/365. Financial institutions that incorporate DIV into the loan process help their organization to maximize insurance verifications while minimizing administrative burden.
- Adopt Strategic, Omnichannel Notice Timing
Many lapses in insurance are merely lapses in communication. An effective program...(continue reading here)