Automate and Scale Protection with Creditor Insurance Integration
Questions answered:
Maximize non-interest revenue by integrating creditor insurance directly into your loan origination process. Covaleyo’s Prolender platform enables seamless integration with creditor insurance providers, allowing Canadian credit unions and financial institutions to automate insurance enrollment, approvals, and policy issuance.
Creditor insurance is a specialized financial protection product that helps borrowers maintain loan payments during unforeseen life events. It is commonly offered as an optional add-on during the origination of mortgages, personal loans, car loans, and lines of credit. The insurance benefits are paid directly to the lender, safeguarding both borrower and institution against default.
Types of Creditor Insurance:
Unlike traditional life or disability insurance, creditor insurance is tied to a specific credit product. Its relevance during loan origination makes it a critical value-added service for lenders seeking to differentiate themselves and boost revenue.
Covaleyo enables real-time integration with creditor insurance platforms. The process includes:
This fully integrated process ensures smooth delivery of insurance products while minimizing operational overhead.
Covaleyo’s creditor insurance integration provides significant strategic and operational value for credit unions and financial institutions:
Creditor insurance presents a valuable opportunity for credit unions and financial institutions to grow their non-interest income. By embedding these protection products directly into the loan origination process, lenders can offer optional coverage at the point of sale, where borrower engagement and acceptance rates are highest.
Each policy sold generates a commission or fee for the financial institution, which adds to revenue without increasing lending risk. Because creditor insurance products have relatively low administrative costs and are scalable through automation, they provide a high-margin, recurring income stream. Over time, consistent insurance adoption can make a meaningful contribution to an FI’s bottom line.
Creditor Insurance Integration with Covaleyo is activated in as little as one day, allowing lenders to begin offering automated protection services without delay.
Contact Covaleyo today to launch creditor insurance integration and bring seamless, embedded protection into your lending process.
A Loan Origination System (LOS) needs to enable Credit Unions to streamline their lending processes as well as ensure they can add additional functionality without a significant impact to operations. An integrated LOS has numerous benefits including reduced errors, efficiency gains, and additional channel options.
Creditor insurance helps borrowers cover loan payments in case of death, disability, illness, or job loss. It is offered during loan origination and paid directly to the lender.
It connects your LOS to an insurance platform, enabling real-time application, approval, and policy issuance without manual steps.
It provides borrowers with peace of mind and offers lenders a new revenue stream while reducing default risk.
Yes. Covaleyo’s platform ensures regulatory compliance and data security through secure API connections and audit trails.
Lenders receive full training, technical support, and access to Covaleyo’s LMS for ongoing success.
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