Let’s talk about insurance verification for your members. Do you offer it? And should you? And… what do we mean by “insurance verification,” exactly?
Here, we’re talking about making sure that your members have adequate home and auto insurance. Many don’t. And that can cause problems.
But, if you do offer insurance verification, you can expect:
- Increased member engagement,
- Reduced complaints around CPI/force-placed insurance
- Lower risk on your loan portfolio.
If any of this sounds good—and we assume it does—then read on to learn about what Woop Insurance is doing.
What Is the “Use Case” for Insurance Verification?
When a member drives off the lot or closes on a home loan, it’s easy for things to slip through the cracks—like insurance coverage. Every loan backed by collateral, from auto loans to mortgages, requires insurance protection.
But here’s the problem: nearly 30% of borrowers leave the dealership or the closing table without enough insurance to meet the loan requirements.
When insurance gaps happen, credit unions are left with a tricky situation. To protect themselves, they often have to issue force-placed insurance or collateral protection insurance (CPI) on the loan.
The issue? Members hate it.
Much like overdraft fees, CPI frustrates members and strain their relationship with the credit union. No one wants to be told they have to pay more—especially when they didn’t even realize they were underinsured in the first place.
Credit unions need a way to ensure their members are adequately insured from the start—without complicating the loan process or damaging relationships. That’s where Woop Insurance steps in.
How Woop Insurance Does It
Woop Insurance helps credit unions eliminate the headache of post-loan insurance verification by making the process seamless for both members and lenders. Through its automated platform, Woop ensures that members know exactly what kind of insurance they need for their loan and helps them get it before the CPI process starts—all through the credit union.
By guiding members to secure the right coverage upfront, Woop reduces the number of members who are unnecessarily put into the CPI process, saving members from unexpected expenses and frustration.
On average, Woop’s service saves members $683 per year and helps avoid unnecessary CPI policies. More importantly, it preserves the trust between members and the credit union, ensuring that their small oversights don’t become major relationship-breakers down the line.
For credit unions, Woop’s solution not only protects against loan risk but also minimizes reputational damage. Members who avoid CPI are far more likely to remain loyal and satisfied for the long haul.
Woop Insurance takes a traditional punitive insurance verification process and turns it into a value-added experience for your members.
The Nitty Gritty Product Details
Verification is an easy place to start, but Woop Insurance offers a lot more than insurance verification. They also offer members an insurance dashboard, a marketplace, and education about their options.
What they’ve found is that they can significantly improve member engagement while also improving member finances. Plus, when members follow through with insurance verification (or shopping), they reduce risk on the credit union loan portfolio.
The whole thing integrates directly into the credit union’s loan process, providing a simple path for members to get the coverage they need, exactly when they need it. All before the traditional CPI process starts.
Here’s how it works:
- Loan origination: Once a loan is originated,, Woop’s platform verifies the required insurance coverage and walks the member through any gaps. This happens prior to CPI process, so your current Collateral Protection program remains intact without any changes or disruption (except fewer members receive those pesky notifications).
- Additional insurance verification: If a member needs to secure additional coverage, Woop helps them find the right insurance product (within the credit union’s ecosystem).
- Continuous monitoring: Woop’s system keeps tabs on insurance coverage throughout the life of the loan, ensuring that a member gets the coverage they need and helps to avoid any costly post-loan corrections and protects the credit union from unnecessary risk.
Woop saves time for credit union teams and simplifies what can be a complicated process for members. There’s no need to track down missing coverage or resort to CPI later.
Want to learn more about Woop Insurance? Check this out:
