At one point, members of SRP Federal Credit Union had access toa hodge-podge of insurance products from different carriers offeredthrough a bevy of third-party vendors.

The $694 million credit union in North Augusta, S.C., said itwanted more as its 103,678-member base continued to expand acrossthe state and into Georgia. The goal was to build a comprehensivesuite of insurance products to protect members, their families andtheir small businesses, according to Ed Templeton, president/CEO ofSRP.

One of the main differences this time around was invitingmultiple carriers to bid on a member's auto, home and businessinsurances to ensure that the best combination of price andcoverage for the insurance they need to buy, year in and yearout.

“Everyone was excited because they knew it was the right thingto do,” Templeton said.

After determining its new focus, SRP launched SRP InsuranceServices LLC in March. Since then, the credit union said it hasseen about 150 to 180 leads into the agency each month.

To help exceed those thresholds, SRP partnered with Insuritas,an East Windsor, Conn.-based firm that helps financial institutionsset up their own insurance programs. The company runs theback-office operations, providing caller ID technology andmanagement systems to provide members with quotes and otherinformation.

“Their quote to sold ratio continues to increase,” said AngelaBecker, Insuritas assistant vice president of client development,adding the agency's quote-to-sold ratio in May was more than 49%,which was above its goal of 39%.

SRP Insurance offers access to traditional auto, home, dental,health and life insurance but has also ventured into niche areas such as petinsurance and identity theft protection. Members can also getquotes on legal service plans, a network of licensed physicians formedical consultations and other non-traditional policies.

In addition to providing a shopping cart for insurance productsthat allows members to shop, compare and buy multiple products frommultiple carriers with a single-check out experience, they can alsocreate an online insurance record, according to Jeff Chesky,president/CEO of Insuritas.

Most activity came through word of mouth and the firm's websiteduring the early months of the insurance agency's rollout, Beckersaid. The next phase is the deployment of a series of marketing andeducation campaigns that taps into when a member has an insuranceneed.

Since insurance can be a critical part of every loan transaction, these efforts will include targeted offersfor insurance that is connected to SRP's lending program, accordingto the credit union. Another campaign will target a member when heor she is getting an insurance policy renewal notice in the mail,according to Becker.

“The traditional local agency model never has an agent calling amember and offering to requite their insurance to see if they cansave time and money,” Chesky said.

Finally, the SRP insurance firm said it has deployed an entirelyonline insurance agency experience that will tap into onlinebanking activity. The credit union will be testing digitalmarketing strategies as well, leveraging its ability to extendtargeted insurance offers to members using an entirely digitalplatform when life cycle events would suggest they might needhelp.

“Since 100% of a credit union's members' buys auto and homeinsurance from someone every year, it is important to havesystematic marketing and communication campaigns that focus on themember's need for insurance when the timing is right,” Cheskysaid.

Before SRP Insurance Services got off the ground, there had tobe buy-in from the top. Chesky said Templeton has taken personalresponsibility for making sure that the members understand thatthat he has built a comprehensive insurance offering and that hismembers should never have to go outside the credit union forcoverage.

“With 100% of a credit union's members buying auto and homeinsurance every year, it is a great when the CEO actively isengaged in promoting the idea of having a new insurance aisle inthe store – obviously not a physical aisle,” Chesky said.

Staff commitment was so high at SRP, that Templeton believed histeam would have it made it work, even if he didn't want to.

“I didn't have to motivate, they were prodding me to go faster.It was pure enthusiasm for the product and the product line,” herecalled.

Between weekly calls and on-site training, Templeton said heactively worked as a facilitator for his team, meeting with staffto make sure that each team member understood their responsibility,and working to ensure that everyone stayed on task while keepingthe end goal in mind.

Becker said Templeton's involvement was invaluable to the launchof the insurance agency.

“He did a great job managing the people involved in the process,while also allowing me to work with the team members,” she said.“His expectations and his leadership were critical to a timelyagency launch.”

According to some industry estimates, more than 60% of creditunions sell insurance products. Over the past year and a half, interest hasincreased in large part due to the cooperatives seeking strategiesto open up new income streams.

Indeed, some credit unions are starting to turn to insurance asa source of fee income, Chesky said. For one, this source annuitizes,paying commissions year after year, as long as the agency is thebroker of record on the policy, he explained. With auto policiesinside credit union-owned insurance agencies enjoying a seven-yearaverage duration, the fee income lasts more than twice as long asthe net interest income on an auto policy while having no capitalof repayment risk, he noted.

“Unlike the fee income from mortgages that can whipsaw violentlywith shifting market conditions, everyone buys their auto and homeinsurance every year, creating a very predictable fee incomestream,” Chesky said.