Credit Unions Beef Up Retail Insurance Services
Two credit unions have announced big changes in their retail insurance operations.
Vermont Federal Credit Union, which is headquartered in Burlington, Vt., and has $415 million in assets, announced Wednesday that it has hired Insuritas, an insurance-agency outsourcing firm, to provide a virtual “insurance aisle” in which members can shop, compare and buy insurance products online.
Headquartered in East Windsor, Conn., Insuritas offers life, medical, pet, warranty, AD&D, credit life, and other insurance products via CU-branded e-commerce portals. It has partnered with over 95 financial institutions, according to a release, and is headed by President and CEO Jeffrey Chesky and COO Gregg Skipper.
“Through this partnership we own the agency, offer a complete array of insurance products to protect our members, their families and their businesses, and we build a powerful new fee income stream,” Vermont FCU President and CEO Bernie Isabelle said. Vermont FCU has 35,000 members.
Also, Redwood Credit Union, headquartered in Santa Rosa, Calif., has announced it acquired Bay Area-based SST Insurance Brokers. SST has become part of RCU Insurance Services, which is a wholly-owned subsidiary of Redwood CU. The credit union, which has $2.5 billion in assets and about 200,000 members, said acquiring the full-service agency will allow it to provide local, in-person consultations and other benefits.
SST will transition to the broker for RCU Insurance Services, which offers auto, home, commercial and other products to members. SST, formerly Sylvester, Schwarz and Tugaw, was established in 1979 in Los Altos, Calif. It became SST Insurance Brokers Inc. in 1997 when Douglas Mahon, who has became an employee of RCU Insurance Services, bought the firm.
“This transition will allow us to streamline the process and work directly with members, which improves our ability to meet their needs,” RCU Services Group Executive Director Bobbi Beehler said. The credit union said it expects to move policies to the new structure over a one-year period.