With Inventory Costs Up, Should Lenders Re-Evaluate Their CPI Rates?
The pandemic-driven increase in the cost of used auto inventory has driven the severity of auto physical damage claims up. As people are returning to work, the frequency of auto physical damage claims are on the rise. What does this mean for lenders with CPI programs?
Behind the Curtain: The Anatomy of a CPI Program
The cost tied to installing and maintaining CPI is important to understand. A CPI administrator performs and is responsible for intricate, specialized duties when handling various aspects of a CPI policy. The insurance carrier has distinct responsibilities as well. It’s important to know how both of these organizations work and interact within your CPI program so you can optimize its success.
Creditor Placed Insurance Loss Ratios - Acceptable & Fair
At Berkshire Risk Services, our goal is to create stable and profitable CPI programs that can withstand regulatory scrutiny. One of the many ways we achieve our goal is by using our expertise to construct programs conducive to producing profitable and even-handed loss ratios.
CPI and the BHPH Fit
We all know that many BHPH customers often arrive at the finance desk without an actionable plan to insure the finance collateral. We also know that most BHPH customers can and will procure insurance when required for financing. So what’s the problem? It’s this: Buying insurance is not the same keeping insurance, and many BHPH customers fail in the latter. So then, how does a BHPH dealer or special auto finance company respond to the inevitable uninsured exposure of its finance collateral?