The Cost of Manual Insurance Verification: Is It Worth the Time and Effort?
It’s no secret that the insurance verification process can be a real hassle. But is the extra time and effort required worth the cost? In this blog post, we’ll take a look at the pros and cons of manual insurance verification and offer some tips on how to make the process as painless as possible.
When you consider how much time, energy, and resources go into manually verifying homeowners’ insurance, it is evident that the costly and tedious process is outdated.
Many costs involved
According to numbers gathered by a third party, the true cost of manually verifying insurance can be broken down into numerous categories and steps.
Loan officer and processor
A loan officer that tracks down a client to make corrections and gather information costs on average $1.61 per minute. If just those few details take only five minutes to assemble, the overall cost is now $8.
Add in the duties of the loan processor (follow-up calls, reviewing information, keying in data, etc.) at an average of $.60 per minute for 15 minutes of estimated work, and the total cost of verifying sits at just over $17.
The mortgage side
The responsibilities of the mortgage underwriter – loan parameters, setting and clearing conditions, etc. – cost an average of $.93 per minute. Adding a total of $4.65 for an estimated five minutes of work, the manual cost has increased to $21.70
A mortgage quality assurance assistant adds an extra $1.98 to the cost ($.66 per minute for an average of three minutes) to compare the policy against LOS.
The overall cost
With all the different steps and duties outlined, the cost of manually verifying homeowners’ insurance averages $23.68.
That is a lot of time, effort, and money to complete a somewhat simple task
How LenderDock helps
Through a lightweight integration, you can now couple specific policyholder data with LenderDock and instantly present third-party financial institutions with real-time, verifiable policy information.