BEDFORD, Tex.-With the recession driving up the number of auto repos-and some of those coming in following an accident-CUs are finding they need help filing insurance claims.
State National Companies explained that more credit unions are asking for assistance with getting claims paid when repos roll in with damage. According to John Pearson, EVP-national sales manager, that demand should continue through the second half of the year.
"We are branching out and handling credit unions' outside insurance claims," said Pearson, who noted that State National has typically stepped in for CUs when members get a car loan but fail to secure car insurance. "Now we are finding a lot of our credit union partners need help working with the insurance companies themselves."
Pearson said that credit unions are finding that persuading the insurer to pay the claim promptly can be difficult because insurers are not dealing with the customer who purchased the insurance on the car. And by making good on the claim, the insurer is not securing any goodwill from an individual who will continue to buy insurance.
"In paying a third party, like the credit union, insurers tend to not pay as quickly as the primary insured," Pearson said. "They do not prioritize those claims. We can help because we know how to deal with insurers-we know how their backrooms work, we ask the right questions, and we get the claims paid."
In the pipeline is an effort to make possible the integration of State National software with the major credit union core processing systems. "We are trying to take the work out of the credit union's hands-completing forms, filing claims, doing inquiries, monitoring payments, etc.-by integrating with the major core processors."
Pearson expects that eventually it may lead to paperless claim filing for the credit union and virtually all of the data fields populated automatically. "We will be able to pull data from State National, public records, insurers, and the credit union's system."
