Lenders and insurers spend countless hours communicating with each other, but they still have no common language for key information identifiers such as loan, policy, and claim numbers. Nor has there been an aggregate source of critical data points for both sides to use. Underlying this cross-industry communication breakdown are data elements that don’t connect easily, such as loan numbers, policy numbers, or name and address combinations. But some long-standing barriers to efficiency are about to fall.
The threefold efficiency challenge
Lienholder-verification processes can consume time and resources. Some insurers report that lenders account for 10 percent of inbound contact—a constant onslaught of e-mails, phone calls, faxes, and letters that can divert resources from helping and servicing policyholders. In addition, these inefficient systems can raise costs and lower customer satisfaction. The lender-insurer ecosystem faces three critical productivity challenges surrounding loan verification:
- For loan underwriting and administration, it’s labor intensive to verify insurance coverage for collateral and continually monitor loss-payable clauses and insurable interests to meet regulatory requirements.
- For insurance underwriting and policy administration, resources are redirected from policyholder services to respond to requests for verification and address updates from lenders.
- For total loss claims, it’s a manual process that can take as long as three weeks to confirm the payable clause and loan payoff.
Found in translation
Verisk is rolling out CV- VaaS™ (Verification as a Service), which is powered by Loan Verifier™, a new contributory database that collects lien information in concert with Verisk’s policy and claims databases to connect key information between lenders and insurers. Loan Verifier leverages a half century of Verisk’s data science and compliance expertise, bringing “multilingual” data to the articulation of components when two entities share lien, policy, or claims information. Supported services include the following:
- CV-VaaS adds to Verisk’s suite of coverage and lienholder verification and compliance solutions for lenders and insurers.
- Lien:Check™ enables claims personnel to obtain and verify lienholder payoff data for use during the total loss settlement process, as well as for additional claims use cases that involve lienholder data.
These tools work in real time, potentially yielding significant competitive advantages for insurers and lenders that use them. And they’re modeled on Verisk’s highly successful suite of Coverage Verifier contributory data solutions, including CV-ALIR® for state-mandated automobile liability insurance reporting and CV-Exchange® for loss payee, mortgagee, and producer notifications.