Insurance Center Does Not Meet Projections

LONG ISLAND CITY, N.Y.-The Turn Key Insurance Center from United Nations FCU Financial Advisors did not prove to be the engine of growth that its architects hoped.

Launched in mid-2011 ("CUSO Makes A 'Turn Key' Offering," May 9, 2011), the project didn't receive the interest that the CUSO's leaders expected it to, said Stephen Ryerson, president of the CUSO. The platform is still available to credit unions, but it is only used by a few small credit unions, said Ryerson, and has simply not had the large-scale appeal it was expected to generate.

"One of the things we've found-and this is an issue throughout the industry-is that credit unions seem to take on programs and products, but aren't really committed to the process," said Ryerson. "They just look at it as incidental, incremental income. UNFCU is quite unique in that we use insurance as a core product on our retail services platform, so all of our staff are very much engaged in the process, including needs assessment."

While the Turn Key project did not pan out as hoped, United Nations FCU and its CUSO are preparing to launch another product-"the only unemployment insurance product available in the United States," said Ryerson.

Working through a partnership with Assura, this product, "Income Assure," would enable users to supplement their state unemployment benefits up to a maximum of 50% of their previous income. Users pay a premium for the service, which ties into his or her ability to receive unemployment benefits.

Ryerson said that due diligence on the product has been completed and all parties expect to sign contracts in the coming weeks. "My hope is that in February we will be communicating into the credit union space through various channels that this product is now available."