5 Reasons a Credit Union Should Offer Insurance Services

Credit unions are known for their excellent customer service, low interest rates and fees, and high savings rates. They put their members first and go above and beyond by providing personal attention and financial education. A smart way to build on the trust you’ve already developed with your customers is to offer another helpful resource: credit union insurance services.

If a customer comes to you asking for an auto loan, you’re perfectly positioned to not only provide that loan but the insurance to cover the vehicle, too. The same goes for other types of loans – like mortgages and business loans.

Why Your Credit Union Should Provide Insurance Services

By providing top-rated insurance options to your current customers, you won’t just increase market share. You and your members will also experience several other outstanding benefits.

1. Fill the Need You See Right on the Spot

100% of your credit union members need insurance. Whether they’re coming to you to take out a mortgage, acquire a small business loan, or buy a new car, they’ll require insurance to protect their assets.

Even members who don’t need to take out loans will still have insurance needs. And who is better positioned to offer insurance services than an institution they already trust?

You’ve already built the relationship. Now, you can deepen that relationship by offering an easy solution – a value-added benefit. Value-added benefits are the services you provide in addition to your primary products and services. They can help you increase member retention, build loyalty, and increase your revenue and bottom line.

2. Build Your Credit Union’s Non-Interest Income

Are you looking for ways to diversify your income streams? Offering your members insurance services is a brilliant way to boost your non-interest income. According to the National Credit Union Administration, non-interest income increased 29% ($5.9 billion) from 2020 to 2021.

Insurance can be a stable source of non-interest income for credit unions. It can help you maintain profit margins and offset losses when interest rates are low. Earn extra revenue through insurance commissions and premiums.

3. Incorporate a Turnkey Business Unit

Some insurance agencies are poised to offer their services to financial institutions, including credit unions. Instead of providing insurance services by acquiring an agency or starting one from scratch, you can incorporate a turnkey business unit.

In other words, your credit union can partner with an experienced insurance agency that’s ready to begin selling insurance to your customers immediately. This can be a more sustainable business approach than starting an agency from scratch.

A turnkey business unit will include the services, products, and sales representatives to start earning revenue for your business quickly. An insurance partner can also handle the marketing needed to get the word out about your new offerings.

An agency should have the tools and technology to push you ahead of your competitors. You can offer your customers online shopping options and accurate price indications from some of the top insurers in the nation. Advanced technology also allows you to track metrics in real-time and personalize the customer journey. With user-friendly price comparison tools and custom-fit insurance solutions, you can go above and beyond your customers’ expectations.

4. Utilize a Fully Licensed and Trained Sales and Service Team

Some argue that you should only sell insurance if you’re an experienced and qualified insurance professional (versus a loan expert). But by partnering with an established insurance agency, you’ll have all the resources you need to inform and delight your customers.

You can work with a top-notch team of highly skilled and licensed insurance agents who will represent your credit union as a branded business unit. The team should provide outstanding customer service and drive profitable results for your business year after year.

5. Have Everything You Need for Marketing and Driving Results

In addition to the technology and customer service aspects, a full-service agency can handle your insurance marketing needs. They should help you spread the word that you offer insurance in-house while also remarketing to current customers so they stick with you long-term.

Coverage Direct uses advanced Salesforce integrations to operate efficiently and track metrics in real-time. We can handle everything from the moment your client requests an insurance quote. Our automated remarketing process will even notify your customers when it’s time to renew or if their rates increase.

Cutting-Edge Insurance Solutions for Credit Unions

Coverage Direct uses cutting-edge technology that provides credit unions a branded business unit almost immediately. We have a top-notch sales and service team with every member licensed and trained to drive and retain lasting results for your business.

We pride ourselves on our personalized service – something you typically only get from small local firms. And our insurance products are best-in-class. We partner with some of the top carriers in the U.S. to give customers the best value and pricing available.

Learn more about our company values and services.

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