Three Key Benefits of Outsourced Insurance Tracking
With the housing market softening in many of the U.S.’s biggest cities and new foreclosure filings increasing as of late, many banks may find themselves seeing a greater need for mortgage hazard insurance or commercial hazard insurance. When homeowners and business owners stop paying their bills, insurance premiums can often be the first to lapse, and the last thing any lender wants is financial responsibility for losses that an insurance policy would normally cover.
But the rules and regulations that govern these insurance policies can be complex and keeping up with them is a full-time job in itself. Reassigning duties to ensure that your mortgage hazard insurance needs are thoroughly covered may leave other important areas lacking. For many lenders, Outsourced Insurance Tracking (OIT) is the answer. Read on for three of the top reasons having insurance tracking services is crucial in today’s market.
Improved Risk Management
Having a larger-than-normal number of foreclosures or pre-foreclosures on your books can be risky in itself. Letting a property’s insurance lapse or paying too much for a force-placed insurance policy or flood insurance policy, can increase your risk on each of these homes.
By outsourcing your insurance tracking services to an outside agency, you can transfer this risk (and responsibility) to a company that specializes in this service. An OIT provider can work with you to tailor each of your insurance policies, creating an effective risk management model across all your portfolios.
Highest and Best Use of Employees’ Time
Tracking hazard insurance can be a tedious and sometimes even mindless task that consumes quite a bit of an employee’s time. But doing it right every time is tough, which means it’s not the sort of task you can necessarily place on an entry-level worker. OIT allows you to assign each employee to the tasks that they’re best suited to, reducing your overhead and the risk that certain items might fall through the cracks.
Increased Customer Satisfaction
If your bank has been sending out quite a few force-placed insurance letters, you may have noticed an increase in the volume of angry phone calls to your customer service representatives. No one likes to get one of these letters and dealing with the aftermath can be an unpleasant experience all around. Outsourcing your insurance tracking can reduce the number of these letters you need to send, improve your customer satisfaction rate, and help to maintain your status as a community partner.