CUNA Mutual Tightens Underwriting To StemCards Losses
MADISON, Wis. - (05/09/06) Escalating losses in itsplastic cards coverage have caused CUNA Mutual Group to implementnew underwriting guidelines, the credit union insurer announcedMonday. Among the new requirements are that credit unions ensurethat CVV/CVC is being validated for all Visa and MasterCardtransactions, including PIN debit transactions; follow claims andrecovery documentation requirementsor else claims will bedenied; and implementation of a 24-by-7 365 fraud monitoring andresponse capability by Aug. 1. The company also said it will bestrengthening its underwriting by more carefully evaluating eachcredit unions plastic card program, with more attention toindividual loss experiences, portfolio activity and exposure tofraud. CUNA Mutual reported a 56% rise in plastic cards losses lastyear to $89 million, with an equal amount of uncovered losses alsoaccrued by credit unions. The new underwriting guidelines go intoeffect with policies renewing on or after August 1, 2006. CUNAMutual currently has around 5,500 credit unions with our plasticcard coverage.