INDIANAPOLIS — The second half of 2009 will keep CUs focused on services that reduce their expenses and manage risk, reports Allied Solutions, which predicts that involuntary unemployment insurance coverage could see even greater interest.
"Involuntary unemployment types of coverage, in this economy, are gaining attention," said Allied president Chris Hilger. "Many of our traditional insurance products and services, as well, like CPI and GAP, are getting closer looks, because they serve multiple needs. Often they are revenue generating, and they mitigate some of the risk CUs or their members have."
Hilger said if his prediction holds, the rest of the year will be a "repeat of the first six months. Credit unions are feeling the strain from the economy and are very focused on any product or solution that addresses cost control and risk," he said. "Bond and directors and officers coverage continue to be very good programs."
Hilger said Allied has also seen increasing interest from credit unions in its payday lending product, which could remain in demand as the economy struggles. "I think we will start to see a recovery later this year, but it will be slow-all the way through 2010. What will hold things down are commercial real estate and residential sales. It's still a mixed bag, and there is a great deal of uncertainly out there."
Allied Solutions is a national provider of insurance, lending and marketing products to financial institutions.
