Insurance is something virtually everyone buys year after year, but fewer than 25% of credit unions offer it, according to recent data from Callahan & Associates, and that could mean big opportunities to snap up market share for credit unions willing to venture into the space.
"One thing I always say is, 'The days of the free toaster are done,'" Brett Harner, an insurance services specialist at CUSO Financial Services, said. "What I mean by that is members are increasingly looking for value-added benefits from their partnerships and their relationships. By offering insurance solutions, it's just another way to acquire new relationships and deepen relationships for our member institutions, as well as add noninterest income."
About 5% of credit unions' overall noninterest income comes from insurance sales, making it a great, member-friendly way to diversify income streams, Corrin Maier, director of CUNA Mutual Group's TruStage program, noted. Members reward credit unions for offering insurance, she said, stating that members who buy through the TruStage program have a 92% year-over-year retention rate at their credit unions versus 86% for members who don't have policies through the program.
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