S7 E12: How Payment Insurance Enhances Consumer Financial Health

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Jun 26, 2024

Danielle Sesko, Director of Product Management at TruStage, discusses the importance of payment insurance in lending to enhance financial health. Topics include safeguarding borrowers, digital lending, consumer financial struggles, and the revolutionizing impact of embedded payment insurance on the lending industry.

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ANECDOTE

Early Career and Insurance Value

Danielle Sesko started her career during the 2008-2009 financial crisis, dealing with bank failures and mergers.
This experience shaped her appreciation for insurance's role in providing economic stability and financial protection.

INSIGHT

How Payment Insurance Works

Payment insurance links directly to loans to protect borrowers from job loss, disability, or death.
It helps maintain lender resilience by preventing missed payments and reducing defaults.

INSIGHT

Challenges of Opt-in Insurance

Insurance sold as an opt-in product faces low take-up and adverse selection risks.
Embedding protection broadly in loans creates a stronger risk pool and makes insurance more affordable and effective.

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Alex is joined by Danielle Sesko, Director of Product Management and Innovation at TruStage, to delve into the crucial role of embedded payment insurance in lending and its potential to enhance consumer financial health.

How does payment insurance safeguard borrowers against job loss or disability, lower delinquency rates, and boost lender competitiveness? Danielle and Alex explore the rise of digital lending and discuss why the need for payment insurance across the lending industry has grown over the past few decades.

With consumers one paycheck away from making a loan payment— and unemployed consumers being forced to take out loans while they struggle for months to find a new job— loan payment insurance is more relevant than ever before. So what role can it play in helping consumers to become more financially secure? And is there a way to design a better product that benefits both consumers and lenders?

To learn more about Cornerstone Advisors, visit https://www.trustage.com/business/insights/financial-trends/embedded-payment-insurance-digital-lending-research?utm_source=fintechtakes&utm_medium=LEN_B2B_cmg_np&utm_campaign=cornerstone-whitepaper&utm_content=link_subject-line_webinar-asset-link&utm_term=june-2024

00:04:46 - Payment Insurance Products

00:06:40 - Protecting Cash Flow with Loan-Connected Insurance

00:07:50 - Consumer Lending and Payment Insurance

00:14:55 - Digital Lending Simplified

00:20:07 - Shrinking Bank Market Share Post-Crisis

00:21:44 - Specialized Lending Ecosystem for Digital Lenders

00:28:46 - Consumer Financial Health’s Impact on Insurance

00:32:39 - Living Close to the Edge: Financial Struggles Across Segments

00:41:19 - Loan Protection Against Economic Risks

00:52:28 - Embedded Payment Insurance Revolutionizes Lending

00:56:03 - Impact of Collections on Business

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Follow Danielle:

LinkedIn: https://www.linkedin.com/in/danielle-sesko-cpa-770b3312/

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