But deciding if CPI is right for your credit union is only the first step. Step two is choosing a CPI provider. Selecting the wrong provider can increase your administrative workload, provide minimal benefit and, even worse, damage member relationships. In contrast, a good program from an established CPI provider is easy to manage, delivers consistent protection and protects the valuable member relationships you have worked hard to cultivate.

In choosing a CPI provider, you should evaluate four critical factors:

1. Experience

You should look for a provider that specializes in CPI. With insurance regulations and the insurance marketplace continually changing, only a provider that offers CPI as its core product can truly provide the expertise and support you need to make your program a success. Such a provider should also provide staff dedicated to serving your CPI program, in contrast to dividing its time among various other complex insurance products.

You should also evaluate how long a provider has been writing CPI and how much premium they currently write. Confirm that the provider underwrites all its CPI business, in contrast to assigning programs to unaffiliated carriers. Ask how many clients the provider has, and look for credit unions in its client list whose business and member makeup are similar to your own and talk to them.

An insurer that specializes in CPI should also exhibit the willingness to make your program a success because they share in that success. Will the provider work with you to keep your program running well and financially sound? Will it indemnify you in the contract?

2. Insurance Tracking Technology

Your CPI insurer should provide an online system that gives you access to tracking technology–providing instant access to insurance records, customized management reports, billing options and other information–and that requires little manual work on your end.

Additionally, this online information should be updated in real-time, rather than in overnight batches. Electronic data interchange should enable the provider to receive automatic updates when a borrower's insurance is renewed. The provider should also offer a regular, monthly reporting of premiums earned and claims paid.

Information security is also a top priority. Your CPI provider should have third-party data security certification to assure both your credit union and your members that your data and member information are adequately secured.

3. Service

A well-run and efficiently serviced CPI program will have minimal impact on your staff's workload and enhance the relationship you have built with your borrowers. Your provider should offer dedicated service teams, separate from the general call center, for your staff. And the call center reps should be trained and monitored versus industry standards. Your CPI provider should also be willing

to visit you personally to ensure that you are satisfied with the service standards it maintains.

The company should offer a unique 1-800 number for your credit union so that when borrowers call with questions, service can be personalized, and calls can be handled 24/7. Additionally, your CPI provider should provide a wide range of additional service options, including interactive voice response, fax and Web self-service, which enable your members to communicate any time, anywhere to avoid the issuance of unnecessary notices or policies.

4. Claim Payment

Another critical measurement of a CPI program is how the provider fulfills its promise of protection when claims occur. This begins with the technology a provider offers to report claims. The reporting system should be available online, intuitive and easy to use, and the provider should be willing to train your employees on how to file claims and provide ongoing training as you hire new staff. You should also be able to check on the current

status of claims, including viewing appraisal reports and photos of vehicle

damage.

Be sure to ask your provider some tough claim questions. How much loan documentation is required with a typical claim? What is the turnaround time on a typical claim? How are skip claims handled?

In a competitive auto loan marketplace with increasingly tight margins, protecting your loan portfolio is critical. CPI is the best way to provide that protection, but only a stable, experienced and technology-savvy provider that is committed to outstanding service can assure the success of your CPI program.