The economic repercussions of the pandemic are many and far-reaching, and we’ll be feeling the effects for some time. Still, we can look back now and get a better sense of how it affected lending in general and how well-positioned the industry is to face the future.
In other words, customers are still in need of credit insurance, perhaps now more than ever, and are eager to have conversations about the valuable protection it can provide. And they will be looking to their financial institutions, as trusted advisors, for help.
These conversations are must-haves. Not only does credit insurance bring a greater level of protection to your customers, but it also lays the foundation for lifelong customer relationships. In a word, insurance still matters.
All of this leads us to a simple point: people are ready to hear about protection. Given that, is your institution offering customers the protection options they need?
We need to talk about insurance
If the past year has shown us anything, it’s the value of protection on mortgages and loans. But with the dust settling, the financial industry needs to look beyond COVID to see what new normal is taking shape.
Part of this changing landscape is the tremendous potential for insurance to grow: according to CMHC data only 1/3 of Canadians have creditor insurance on a mortgage and only 40% on a line of credit. With so many still without protection, this is a timely opportunity to make credit insurance part of the conversation.
Raising customer awareness about insurance gaps in their finances should be front and centre for financial institutions, and now is the ideal time to review the portfolios of your existing customers to see where they are with coverage and where they need to be. Does the client have a loan with you? If so, have they purchased protection? If not, why? What are their current and future needs?
The insights that arise out of this gap analysis should be built into the existing conversations you’re having with clients – as well as the starting point for initiating new ones – about the solutions that are available to them. Companies like Valeyo provide a balanced protection portfolio for multiple loan types and situations, so that you can provide the best range of protection solutions to your customer.
Despite the physical distance we had to put between us this year, business is still about relationships, so make it a priority to reach out to see how a customer is doing. Letting them know that their protection is on your mind opens the door to the conversation that both of you need to have.
Valeyo is here to listen…and act
There is a real opportunity right now to reach out to customers – all of whom are stepping out of the pandemic with their financial security top of mind – where you can help address their needs gap and provide peace of mind. Protecting the customer is what insurance does, and what you can do for them.
It is also what Valeyo does best.
Valeyo has been offering insurance programs for 40 years, and we’re always ready to help. Our full suite of coverage options can be tailored to meet your institutional needs – so you can meet those of your customers. Working directly with you, we help develop and manage a customized, compliant protection program that is in line with the specific goals of your institution, delivering end-to-end solutions that grow your insurance portfolio, mitigate risk and, in light of this current opportunity, give you the tools to provide the protection that your customers are looking for.
Leveraging our extensive experience and turnkey creditor insurance programs lets you lend with confidence, a confidence that you can then pass on to your customer, so that they feel ready and secure for anything that comes their way, knowing they’ll be protected.
Contact Valeyo today to speak with an insurance expert.
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