Insurance Momentum Builds for CUs in 2004

WEST PALM BEACH, Fla. -From an increasing number of credit unions getting into the insurance business by either opting for a turnkey solution, buying an existing agency or forming their own, to a few well-known credit union insurance providers teaming up-2004′s insurance moves have been far from dull. Early in the year, St. Paul-based Minnesota Life Insurance Company acquired Indianapolis and Dallas-based Allied Solutions to provide credit unions with one-stop shopping for insurance, lending and marketing products. Popular turnkey insurance agency solutions provider Banc Insurance Services not only teamed up with management consulting firm MarshBerry to launch a new company MarshBerry Banc Insurance Services but was also acquired by integrated computer systems and ATM and debit card transactions processor Jack Henry & Associates in September. The acquisition is part of Jack Henry & Associates’ strategy to enable clients to provide their retail and commercial members with competitive insurance products and convenience. Over in California five credit unions created their own solution to a rising workers compensation crisis by forming the Credit Union Self Insurance Group. Requirements for credit unions interested in joining CUSIG include a fiduciary study a minimum of $500 million in assets, an experience modification rating of less than 1.02 and a minimum payroll of $5 million. In addition, credit unions with operations outside of the state are not covered. It is estimated that by 2005 credit unions participating in CUSIG may experience a 20-60% decrease in premiums.