May 2024 Newsletter

Upcoming Industry Events

May 8-10

WI League Annual Convention & Expo - La Crosse, WI

May 10

ICUL 10th Annual Women's Leadership Conference - Lombard, IL

May 14-16

DakCU Annual Summit - Larchwood, IA

May 15-17

CUCP 5th Annual Summit - Nashville, TN

May 19-21

CrossState Connect Annual Convention - Atlantic City, NJ

May 21-23

FinovateSpring - San Francisco, CA

May 25-29

NCUMA Annual Spring Conference - Amelia Island, FL

Industry News

The Risky Economics of 'Going Bare' Without Homeowners Insurance

In the US, a growing number of homeowners are opting to go without home insurance, a trend known as "going bare." According to a study by the Insurance Information Institute (III) and Munich Re, 12% of American homeowners are now uninsured, up from just 5% in 2015. In some areas, like Florida, this rate is even higher, between 15-20%.

This decision means that if disaster strikes, homeowners are left to cover the costs themselves. The average annual home insurance premium is now $1,759, a 23% increase from the previous year, making insurance unaffordable for some. Additionally, some insurers are pulling back from high-risk areas, making it harder for homeowners to find coverage.

Financial planners advise against going without insurance, citing the high costs of rebuilding after a disaster. To mitigate insurance costs, homeowners can shop around for the best rates and discounts, increase deductibles, or consider changing their policy type. However, these solutions may not be suitable for everyone, and going without insurance remains a risky decision with potentially significant financial consequences.

Read Full Article

insurancebusinessmag.com

Watch for This "Hidden Risk"

Jim Fish, chief marketing officer at OPUS IVS, warns of a "hidden risk" in auto lending due to rising auto repair costs, not just for collisions, which could challenge borrowers' monthly budgets and contribute to rising delinquencies. He notes that as credit unions extend loan terms to record lengths, vehicles are more likely to require repairs, especially with the increasing complexity and cost of vehicle technology. While advanced driver assistance systems (ADAS) are reducing collision rates, they significantly increase repair costs, with radar systems alone costing around $1,500 to replace. Fish advises lenders to consider these factors when assessing consumer risk and loan affordability.

Read Full Article

insurancebusinessmag.com

Latest Hurricane Outlook Predicts One of the Most Active Seasons on Record

The 2024 Atlantic hurricane season is expected to be one of the most active on record, with warm water and lower wind shear contributing to this outlook. Meteorologists predict 24 named storms, 11 hurricanes, and six major hurricanes. The increased storm activity is attributed to a combination of factors, including record warm Atlantic Ocean temperatures and the potential transition from El Niño to La Niña, which could create conditions favorable for more and stronger storms. Forecasters also anticipate a higher likelihood of storms making landfall due to a specific weather pattern that could direct storms towards the Caribbean and the United States.

Read Full Article

weather.com

What Others Are Saying About ISI

"I wanted to take a moment to let you know that the customer service we have experienced with ISI has been top notch. All of the ISI representatives have been extremely helpful, knowledgeable and prompt in resolving any problem that arises. We have also found the portal to be user friendly and we love the live chat feature! I have also found fewer member complaints with regards to coverage added to their loan in error. Keep up the great work!"

Melissa Douglas VP of Lending and Collections

Midwest Regional 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 5 Years

Affinity Credit Union

Data/Industry Trends

Mechanics Voted: These are the Most Durable Cars for 2024

Reliability is crucial for car buyers, who value both exceptional performance and durability. The most reliable cars are known for their longevity, low maintenance costs, and consistent performance. They come from a variety of brands, both established and new, offering options for every driver. These cars are not just vehicles but trusted partners in the journey of life on the road, offering efficiency, safety, and a reliable driving experience.

Read Full Article

msn.com

Mortgage Rates Forecast for 2024: Experts Predict How Much Rates Will Drop

Mortgage rates have surpassed 7% in 2024, with the average 30-year fixed rate at 7.17% as of April 25, according to Freddie Mac. Experts predict rates to remain above 6.5% in the near term, with varying forecasts for the year-end rate. Despite expectations for rates to recede over 2024, uncertainty remains about whether they will drop enough to significantly impact home affordability.

Read Full Article

forbes.com

May Holidays, Fun Facts, and Folklore!

April showers have brought May Flowers! The month of May is named after the Roman goddess Maia, who oversaw the growth of plants. See what the May calendar holds and gather some seasonal recipes, gardening tips, and more!

Everything you need to know about May

almanac.com

If Your Borrower Can't Cover Car Insurance Costs, Can They Truly Afford the Car?

Are you factoring in insurance costs when extending a car loan to your borrower? Surprisingly, the answer is often NO. If your loan process requires insurance on the auto, why overlook the significant expense it imposes on them?

The average nationwide insurance cost (figures my vary based on source) stands around $2,100 annually or $175 monthly. Lenders might argue that borrowers cannot afford force-placed insurance. If so, then why can't the lender afford their own primary insurance?

During loan closures, as loan officers discuss the borrower's insurance obligation, it is crucial to calculate the average insurance expense for the entire term of the loan. For instance, if the borrower is financing a vehicle over 72 months and the average cost of insurance is $175 per month, they must be able to afford to pay $12,600 in insurance premiums over the life of the loan.

The borrower must have a comprehensive understanding of the total financial obligation, including insurance premiums, before securing a car loan.

To learn more about the average cost of insurance across the country, please follow the link: The Average Cost of Car Insurance in the U.S.

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.