How insurance coverage can improve a borrower’s ability

Over the past few years, lenders have put a microscope to their processes to see where they can improve the lending journey. But there may be one area they are not looking at yet. HousingWire sat down with Kara Shipulski, vice president of relationships at Liberty Mutual, and Sean Larney, relationship manager at Liberty Mutual, to discuss how partnering with a well-known insurance company is helping to attract borrowers.

HousingWire: With rates rising and refis falling sharply, mortgage companies across the industry are now having to do more with less to be profitable and competitive. What are the overlooked opportunities for lenders to gain recognition for their original offerings and increase efficiency?

Kara Shipulski: As mortgage companies look to become more profitable and competitive, they find themselves putting more effort into expanding their relationships with customers beyond just making loans.

One way that lenders can grow their relationship is by expanding their products, and some of the most important products include other financial products such as car, home, or small business insurance offered by the lender.

Providing access to things like this helps the mortgage company make things easier for their customers, which helps build trust, and encourages repeat business and future referrals. Offering these close-by products also helps the lending company to be more profitable, allowing them to focus on producing their core products instead of cutting costs – a win-win for everyone.

HW: How can partnering with a well-known insurance company improve the relationship between borrowers and lenders?

Old Larney

Sean Larney: Risky lenders keep customers happy and profitable, but how do lenders ensure their customers get the most credit? Satisfaction. Increasing lender satisfaction helps the lender gain trust which leads to more customer engagement.

In a world where the lender’s choice of lenders seems endless, one way a lender can attract a customer’s attention and get them to do more is to offer extra cash.

Offering even one additional item next to a rental item shows the customer that you understand the entire home buying process – you see them as a homebuyer on the journey, not just a requester and that helps solidify your position as their rental choice. A borrower can improve brand consideration quickly by contacting a strong company near home insurance. The key here is to provide these services using partnerships with large and respected brands in a way that allows you to meet the needs of customers without heavy costs.

What are some of the biggest pain points for a borrower who may not have a contract with an insurance company?

KS: In many cases, the consensus on a product to distribute to customers can be overwhelming for organizations. At Liberty, we strive to make things as easy as possible for our partners through responsive and personalized service from a dedicated Relationship Management team*. The team is especially united to understand the needs of the employees in different industries related to accommodation and can help the partner to look at the problems and challenges of the insurance business.

In a broader sense, consumers have become accustomed to and want simplicity in all their daily activities. For companies looking to differentiate themselves in a competitive environment and improve customer satisfaction and loyalty, offering home insurance seamlessly during the purchase process can help improve the customer experience and create a one-stop shop for all of the customer’s home buying and financing needs. Not providing seamless information can put lenders at a disadvantage compared to their competitors.

HW: How do Liberty Mutual Partner Programs work, and what do borrowers need to know to get started?

SL: We offer a wide range of diverse and innovative types of insurance, auto, home, pet, business lines insurance and more through our partner agencies. Our wide range of contracts allows us to adapt to the needs of our partners, whether it is your first time working with an insurance company, or you already have your P&C license. We have a number of ways to connect with the lender’s past experience and we are working on building our belt to provide a partnership model that maximizes value and convenience, while minimizing the cost of implementation and operation.

*The amount of program support may vary depending on the size of the group

To learn more about Liberty Mutual programs, visit libertymutual.com/partner-programsor contact us at [email protected].