Academic journal article ABA Banking Journal

What Are You Doing to Keep Credit Insurance Working? Consider a Smart Alternative

Academic journal article ABA Banking Journal

What Are You Doing to Keep Credit Insurance Working? Consider a Smart Alternative

Article excerpt

After years of service, your long-standing credit insurance program probably delivered on its promises to your financial institution and your customers. But to keep it going today, many lenders find it a struggle. That's why more and more top U.S. lenders have turned to debt cancellation type programs or what we collectively call Debt Management Programs[R].

Why the struggle with credit insurance? Lenders tell us many factors have converged, including new regulations, frequent rate and form changes, inconsistent features and benefits, complicated disclosures, and more. Sure, these lenders could continue to work their credit insurance program, accepting the additional risks, burden, and work required. But more and more lenders have given serious consideration to displacing their credit insurance offering with a Debt Management Program. And they are launching these programs with the help of Aon Integramark.

Debt Management Programs make it possible for lenders to offer one product for all states, sold at one rate, with simplified and uniform disclosures, as well as other marketing and sales benefits. …

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