Securian Financial Partners With Open Lending on Innovative Auto Loan Insurance Protection for Credit Unions

Rhea-AI Summary

Securian Financial has partnered with Open Lending to provide insurance protection for credit unions and other auto lenders. This collaboration will leverage Open Lending's Lenders Protection™ program, known for its sophisticated analytics and risk management capabilities, enabling credit unions to offer competitive loans to underserved borrowers. David Seidel of Securian Financial emphasized that this partnership will help credit unions expand their member base and grow their businesses. Chuck Jehl of Open Lending praised Securian's high ratings and strong history with financial institutions. This development marks Securian Financial as a key player, offering various insurance and protection products to over 6,000 financial institutions across North America.

Positive

• Securian Financial's partnership with Open Lending enhances credit unions' ability to offer competitive loans.
• The Lenders Protection™ program combines advanced analytics and enhanced underwriting.
• Securian Financial's insurance solutions bolster credit unions' risk management.
• Over 6,000 financial institutions in North America leverage Securian Financial's solutions.

Negative

• None.

Financial Analyst

The partnership between Securian Financial and Open Lending signifies a potentially beneficial alignment for both parties, especially for credit unions and underserved borrowers. Credit unions, which often serve as key lenders for people who might not have access to traditional financial services, could now offer more competitive auto loans without assuming additional risks. This could lead to an increase in loan volumes, which in turn can boost revenue streams for these institutions.

From a financial analyst perspective, the collaboration might yield increased profitability for credit unions through enhanced risk management enabled by Open Lending's sophisticated analytics and underwriting processes. Furthermore, Securian Financial stands to gain from this partnership by expanding its insurance footprint and tapping into a segment that aligns well with its existing services, potentially resulting in higher insurance premium revenues.

However, there are also potential risks. If the analytics and underwriting models fail to accurately predict risk, it could result in higher-than-expected default rates, negatively affecting both Open Lending and Securian Financial.

In the short term, investors might not see an immediate financial impact, but in the long term, this strategic partnership could result in stronger financial performance for both Securian Financial and credit unions involved.

Market Research Analyst

The market implications of the Securian Financial and Open Lending partnership are noteworthy, particularly in terms of market expansion for credit unions. This collaboration can make credit unions more attractive to borrowers who have been underserved by traditional lenders. The ability to offer competitive auto loans will likely enhance the market position of credit unions, attracting new members and retaining existing ones.

From a market perspective, this partnership can drive customer acquisition in regions with high concentrations of underserved borrowers. By leveraging Open Lending’s analytics, credit unions can offer tailored loan products that meet specific market needs, potentially increasing their market share.

Moreover, this partnership could set a precedent in the industry, encouraging other financial institutions to adopt similar models, thereby fostering a more inclusive lending environment. However, the success of this initiative depends on the effectiveness of the risk analytics and the underwriting process.

In summary, this partnership may significantly enhance the appeal and competitive edge of credit unions in the auto loan market over the long term.

ST. PAUL, Minn.--(BUSINESS WIRE)-- Securian Financial and Open Lending have announced a strategic partnership for Securian to provide insurance to credit unions and other auto lenders through the Lenders Protection™ program offered by Open Lending, a leading provider of automotive lending enablement and risk analytics solutions for financial institutions.

“We are excited about our partnership with Open Lending to help credit unions reach new members and grow their businesses,” said David Seidel, Securian Financial’s U.S. head of Affinity Solutions. “The Lenders Protection program combines sophisticated analytics and enhanced underwriting with highly-rated insurance—empowering credit unions to offer more competitive loans to underserved borrowers within return and risk expectations. We are proud to be a new carrier in this program, bringing another Securian Financial solution to credit unions and auto lenders throughout the United States.”

“We are pleased to add Securian Financial as an insurance partner for our Lenders Protection program,” said Chuck Jehl, Interim CEO of Open Lending. “With high ratings and a long history and familiarity with our credit union and other lending institution customers, they are a great addition to our program.”

Credit unions and distributors interested in learning more can find a Securian Financial sales professional to talk to in their region at https://www.securian.com/contact-us/financial-institution-contact-form.html and contact Open Lending at https://www.openlending.com/contact-us/.

A go-to provider for financial institutions and associations

Securian Financial’s Affinity Solutions business is a go-to provider of insurance and other protection products to more than 6,000 financial institutions and associations in the United States and Canada. Securian Financial offers a diverse portfolio of specialty property & casualty, life, accident and supplemental health product options—all backed by customized solutions and exceptional service.

ABOUT SECURIAN FINANCIAL

To be confident in your financial future, you need to trust the strength and commitment of the companies you choose to work with. For more than 140 years, the Securian Financial family of companies has been developing innovative insurance and retirement solutions to meet the evolving needs of individuals, families and businesses. Offered through partnerships with employers, financial professionals and affinity groups, our products help bring peace of mind to more than 23 million customers throughout the United States and Canada. We are trusted by our partners and customers to fulfill our purpose of helping to build secure tomorrows. For more information about Securian Financial, visit securian.com or follow us on Facebook, Instagram or LinkedIn.

ABOUT OPEN LENDING

Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based pricing, risk modeling and default insurance to auto lenders throughout the United States. For over 20 years we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit openlending.com.

This is a non-admitted product and may be placed with/procured from a surplus lines insurer only by a properly-licensed surplus lines broker. Coverage may not be available in all jurisdictions.

Securian Financial is the marketing name for Securian Financial Group, Inc., and its subsidiaries.

DOFU 7-2024
3701895

View source version on businesswire.com: https://www.businesswire.com/news/home/20240710711791/en/

Securian Financial

Jeff Bakken, Media Relations

651-665-7558

jeff.bakken@securian.com

Source: Securian Financial

FAQ

What is the partnership between Securian Financial and Open Lending about?

Securian Financial has collaborated with Open Lending to provide insurance to credit unions and auto lenders through the Lenders Protection™ program.

How does the Securian Financial and Open Lending partnership benefit credit unions?

The partnership allows credit unions to offer more competitive loans to underserved borrowers by utilizing advanced analytics and enhanced underwriting provided by the Lenders Protection™ program.

When was the Securian Financial and Open Lending partnership announced?

The partnership was announced in a recent press release from Securian Financial.

What is the Lenders Protection™ program by Open Lending?

The Lenders Protection™ program is a lending enablement and risk analytics solution that combines sophisticated analytics with high-quality insurance to help financial institutions manage risk and provide competitive loans.

How does Securian Financial's partnership with Open Lending affect the stock symbol LPRO?

The partnership is likely to positively impact Open Lending's stock symbol LPRO by enhancing their service offerings and market reach.