Bancinsure Auto Insurance Review

In 1985, a group of 15 state banking associations established an insurance company that specialized in exclusive products for financial institutions. Today, all of them are still actively affiliated with the organization. A niche company, Bancinsure strives to produce products that will offer value to banking businesses. In fact, all of the board members are actively involved in the industry. 

Bancinsure is owned by BMSI Holdings. In the state of Oklahoma, it is listed as a foreign for-profit organization. As the only independent insurer to the banking industry, Bancinsure does not offer auto insurance to everyday consumers. It is licensed in 48 states.

For banking businesses, coverage may be available through the property and casualty product lines, Advantage and Advantage Plus. This shelters routine operations and liability such as damage to equipment and buildings, medical liability, professional liability, and flood insurance. Specific types of damage that are covered include debris removal, hazardous clean up, income protection, computer hardware and software protection, utility services, and rental properties. To receive and compare car insurance quotes for FREE enter your ZIP code in our car insurance comparison tool 

Automobile insurance is a type of property insurance; however, it is not typically covered under a property liability policy. Normally, it would be purchased separately under a commercial vehicle policy. This rule may vary from state to state. Bancinsure does guard against the loss of property that occurs during transport.

Other products:

• Financial Institution Bonds cover fraud, theft, and other dishonest actions by bank employees.
• Director Officer Liability protects against legal claims of wrongful denial of loans, inappropriate credit extensions, and other actions. 
• Director Officer Entity is a type of blanket coverage that extends the liability policy to the bank and 
• other employees.
• Excess Deposit Bonds protect daily deposits that exceed the FDIC limits.
• Kidnapping, Extortion, and Ransom insurance protects institutions that handle sensitive information and technology, transfer large amounts of money, or are high profile.
• Health Savings Accounts are a fast growing industry segment. This Insurance product is designed to protect consumer investments in Health Savings Accounts.
• Flood Insurance is available to all lenders that are federally accredited and are involved in extending real estate loans.
• Extended Professional Liability products combine multiple safeguards into a single policy. It is designed to protect both the bank’s assets and those of the Directors and Officers.

Baninsure operates two smaller subsidiaries- Matterhorn Financial and Builders Edge. Matterhorn provides credit related products to lenders. Performance Bonds, Mortgage Protection, and Master Property and Liability coverage are the most popular lines. Builders Edge offers financial protection for the construction industry. Building contractors, suppliers, and subcontractors are commonly serviced through this ancillary group. 

A third arm of Bancinsure is BMSI Marketing, located in Oklahoma City, Oklahoma. It handles all of the sales and marketing functions for the parent company, as well as banker consulting services. In addition, it shares several executive officers. The former National Sales Director, Joe Perkowski, was recently appointed as Assistant Vice President. Other key executives include:

• Galen Pate- Chairman
• Rodman Frates- Chief Executive Officer and President
• Lisa Bay- Vice President and General Counsel
• James Cross- Vice President of Claims
• William Funk- Vice President of Marketing
• Mark Krienke- Chief financial Officer
• Lynette Parmley- Vice President of Human Resources

Bancinsure Financial Strength

In the current poor economy, Bancinsure is struggling to maintain its status quo. While 2009 realized a 36 percent increase over earnings in 2008, the most recent report for 2010 indicates that the situation has not improved much.

Products, such as the Financial Institution Bonds and the Director Officer Liability, have resulted in underwriting loses. This scenario represents a common trend among other financial institutions. Bancinsure’s five year returns have shown high fluctuations in surpluses. Currently, the company reports a surplus of $37,000,000. This is down from the previous year by over two million dollars. 

Bancinsure’s financial strength rating was downgraded in August 2011 from an A- to a B+. A.M. Best rates insurance companies based on its ability to meet financial obligations and service the ongoing needs of consumers. In addition, it also looks at the potential for short-term performance over 24 to 36 months. While the credit rating remains good, the general outlook for Bancinsure is reported as negative. See how Bancinsure’s financial strength ratings compare to other car insurance companies in our car insurance reviews page.

Active Partnerships:

• Arkansas Bankers Association
• California Bankers Association
• Colorado Bankers Association
• Illinois League of Financial Institutions
• Community Banks of Iowa
• Kentucky Bankers Association
• Minnesota Bankers Association
• Montana Bankers Association
• North Dakota Bankers Association
• Oklahoma Bankers Association
• Oregon Bankers Association
• Independent Banks of South Carolina
• South Dakota Bankers Association
• Tennessee Bankers Association
• Texas Bankers Association
• Utah Bankers Association
• Washington Bankers Association
• Wisconsin Bankers Association
• The Bankers Bank

While Bancinsure does not offer individual auto insurance, it does have a stellar line up of products for the banking industry. Consumers report a very high satisfaction rating and are loyal to the organization. As a unique provider of niche industry offerings, Bancinsure offers exception customer service at competitive prices. Get cheap car insurance quotes for FREE by entering your ZIP code in our car insurance comparison tool.