MADISON, Wis. — In an industry first, CUNA Mutual Group has teamed up with Denver-based Gateway Services Group to offer CUNA Mutual's credit insurance and debt cancellation products.
The move marks the first time someone other than CUNA Mutual employees will be marketing insurance products for credit unions. As part of its overall three-year transformation CUNA Mutual has been incorporating new sales processes and technology to better connect and serve credit unions. According to Jim Buchheim, vice president of PR & communications for CUNA Mutual, the new arrangement is a "natural progression" since distribution has been one area CUNA Mutual wanted to improve.
"CUNA Mutual's partnership with Gateway Services Group reflects new thinking and a new, dynamic approach to serving the needs of credit unions," said CUNA Mutual President/CEO Jeff Post. "We understand credit unions have established relationships with trusted advisors like Gateway Services Group and, through this agreement, we're expanding our distribution capabilities and the collaboration we have in the credit union marketplace. We see this as another positive step in strengthening and improving our company."
Recommended For You
The CUSO, Gateway Services Group, provides insurance and investment consulting and support to more than 100 credit unions, representing nearly seven million members and more than $75 billion in assets. In addition, Gateway Services Group will offer CUNA Mutual products to credit unions affiliated with Quality Service Organization, a wholly owned subsidiary of Gateway Services Group.
"CUNA Mutual is the last company left in the industry that is a direct writer of products for credit unions, which helps cut some layers of costs and our partners encouraged us to explore the possibility of a collaboration given the new direction CUNA Mutual is taking," said Gateway Services Group Founder/CEO Scott Jentz. "It is a win for all parties involved–our clients represent substantial buying power and offering debt cancellation has been a growing priority for our company while CUNA Mutual has an opportunity to innovate its distribution model–the result is that this ultimately is really great for credit unions."
As part of the deal, Gateway Services Group retains ownership of its book of business and will have some say in the group pricing.
Staffers in the insurance side of the CUSO will use CMG as the underwriter for debt cancellation and credit insurance products while working with CMG support service staff. As far as which company takes the lead it will be handled on a case-by-case basis for now based on which has the primary relationship.
While the agreement will initially focus on credit insurance and debt cancellation, the possibility of expanding product offerings will be explored. –[email protected]
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
