Insurance: Time to rethink your approach?

By on December 18, 2020

first_imgHaving organizational commitment and the right delivery structure can make a world of Karen BankstonAlmost every credit union offers some form of insurance coverage for members—from credit life and disability options to a full range of property, casualty, and life insurance products, says Jeffrey Chesky, president/CEO of Insuritas, a CUES Supplier member based in E. Windsor, Conn.However, Chesky suggests that many credit unions may benefit from examining two aspects of their insurance offerings:Organizational commitment to this product line. “Credit union executives get up every day and think intensely about gathering deposits, making loans, and even offering investment services. Many don’t think of insurance products with the same discipline,” he contends.Delivery structure. Traditionally, many credit unions have referred their members to third-party insurance providers, which may raise regulatory hurdles in terms of sharing members’ information, dilute brand equity, and make enrollment more cumbersome, he says.The downside of both these issues is the likelihood of significantly lower revenue production, he cautions.Under the pro column of offering insurance, Chesky lists “a fairly simple licensing process” and no balance sheet or repayment risks. Plus, “it provides a wonderfully elegant experience for the member because so much of the data the credit union has on the member to underwrite loan risk is exactly the same data that an insurance carrier needs to price claims risk,” he says. Both credit unions and insurance carriers base their underwriting on character and collateral. continue reading » 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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