The two organizations formed a strategic alliance to offer auto, home and renters insurance to members of credit unions participating in CUNA Mutual's MEMBERS auto and homeowners program, which has generated more than $26 million in fee income for participating credit unions. In 2007 alone, the program paid credit unions $7.4 million in noninterest income.
Since 1998, the MEMBERS auto and homeowners program has helped individuals through losses and disasters by making $1.5 billion in claim payments, said Bill Jolicoeur, a CUNA Mutual vice president who has overseen the program for the company.
Some 3,200 credit unions representing more than 38 million eligible members participate in the program.
"The fact that we've had a 10-year strategic alliance with an industry leader like Liberty Mutual shows strength and stability," Jolicoeur said. "The relationship also needs to be celebrated because it helps credit unions build additional relationships with their members and improves credit unions' bottom lines."
The alliance has been mutually rewarding for both companies, adds Melanie Foley, Liberty Mutual vice president and manager of direct marketing.
"CUNA Mutual brings the expertise in managing credit union relationships and marketing to credit union members, while Liberty Mutual brings innovative products, varied distribution channels and prompt and dependable claim service," Foley said.
To commemorate the 10th anniversary of the alliance, each company donated a new guitar to a silent auction held last week during CUNA Mutual's Discovery Conference in Hollywood, Fla. The guitars were autographed by members of the music group, the BoDeans, who performed at the conference. The guitars sold for $925 at the silent auction, which raised more than $13,500 for the National Credit Union Foundation's disaster relief fund.
CUNA Mutual expanded its alliance with Liberty Mutual in 2007 to enhance its workers' compensation insurance program. Liberty Mutual also is currently the second largest workers' compensation insurer in the U.S. The alliance has allowed CUNA Mutual to expand its offering of workers' compensation insurance to all 50 states and the District of Columbia.