Shifting to Digital in Overdrive

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That’s Just How We Roll!

ITC Digital

Who had “Total Shift Toward Digitization” on their 2020 mortgage and insurance industry bingo card? Anyone?

Remote online notarization (RON), digital signatures and a slew of other futuristic-for-this-industry methods have become the norm out of necessity. The modern replacements that had been patiently waiting for widespread adoption suddenly had the green light. That includes the next big industry thing: process automation for sourcing data – specifically in the homeowners insurance verification process.

Process Automation, Meet Homeowners Insurance

Process automation allows businesses to digitally acquire information from sources, drastically reducing the chance for delays and human error.

Traditionally, lenders manually contact insurance agents and carriers to verify homeowners insurance (HOI) on every home purchase and refinance transaction – a time-consuming process that can significantly delay a mortgage closing and frustrate lenders, insurers and consumers.

We realized this was a roadblock, and we knew we could do something about it. So we created Nexsys Clear HOI℠. Clear HOI takes the time and frustration out of verifying HOI by allowing lenders to pull Evidence of Insurance from participating insurers with the click of a button. No phone calls, faxes or emails required.

“We’re going directly to the sources. Instead of calling a homeowners insurance agent in town to send a (declarations) page, we can go straight to the big insurance company — with the client’s permission — and pull that data directly,” said Bob Walters, president and COO of Quicken Loans, as he spoke at Digital Mortgage 2020 in September. “Two great results are occurring because of that. It’s easier for the consumer. They don’t have to go rummage through their files and find these things. The second thing is the data quality is better. When you go straight to the source, you don’t have ‘page 10 wasn’t readable.’ You don’t have the possibility that someone might intervene. When you have multiple intermediaries touching it, opportunity for foul play goes up, (as) does the ability to lose pages, to have smudges and things like that. The fewer hands that touch data, the better.”

With Clear HOI, verified lenders can retrieve current insurance policies instantly, and insurers can always be confident that the consumer has provided consent for sharing their information. All this happens within moments, versus days; and all information is secure through an industry-leading encryption process and cloud-based technology.

Our innovative platform automates third-party requests and creates consistency in communication. It sends policy information using the same format every time, eliminating potential data input errors and other delays. “What Clear HOI does for lenders and insurers is that it allows both sides of this process to work with only one standardized entity, rather than deal with literally thousands of different players,” said Nexsys Executive Vice President Mike Lyon. “Think of Clear HOI like a digital middleman – but in this case, it’s a middleman that creates a metric ton of efficiency instead of bogging down processes.”

With three of the top five US insurers already live with Clear HOI and several other carriers soon to be live, Nexsys maintains a 25% market share that is sure to grow in the coming months. Want to learn how Nexsys Clear HOI can streamline your HOI processes?

Visit us at ITC Global 2020

Digitally stop by our virtual booth at InsureTech Connect’s ITC Global 2020 conference. We’ll be in the Global Expo Hall. Or, you can submit a request and we’ll personally reach out to you with more information.


About the Author:

Nexsys Technologies® is a FinTech company founded by mortgage industry gurus and dedicated to delivering smart, innovative solutions. Our mission – provide streamlined and reliable tools to make mortgage closings more efficient, effective and (dare we say) enjoyable for everyone.
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