MADISON, Wis.-Not only should credit unions be making loan applications available online, but they can boost their non-interest income revenue by adding an option for insurance quotes at the end of those applications.
"There's two things you need when you drive off of a car lot: to show that you can pay for the car and that you have insurance," said Corrin Maier, director of CUNA Mutual Group's MemberCONNECT, which manages the company's TruStage insurance brand. "Credit unions are doing very well at making sure members know they can get financing, but they could make that loan a lot more valuable if members knew that they could save money on insurance at the credit union."
CUNA Mutual has added the option for auto insurance quotes at the end of its LoanLiner.com online auto loan application, and Maier said that one out of every eight users moves on to get an insurance quote after completing that application.
Online insurance quotes are just one new channel for helping deliver non-interest income, and Maier said that TruStage is working on creating more awareness of its products via social media in 2013, even if that just means offering statistics and trying to engage members through that channel.
"You can't go out and say 'Life insurance is cool, you should buy it,' but it's trying to make it more relevant and demonstrate to credit union members that we understand you."
Maier stressed that auto insurance "is a great first step into insurance if credit unions aren't already playing in that game." Not only is it complementary to the CU's core business of lending, she added, but nearly everyone needs it.
"While the margins won't be super high on what they earn, the volume will be higher than many of the other insurance products out there."
Finding ways to introduce non-interest income-generating products at relevant times is crucial, said Maier. She pointed out that life insurance ties well to events like getting married or having children, "so there's a great tie to understanding that the credit union is not only going to help the member make their dreams come true, but make sure they're protected once they do that."
