Few companies are more intertwined with both the history and future of credit unions than CUNA Mutual (remember Mother Mutual?), so any change in its leadership can mean a decade of repercussions for its CU and CU member policyholders.
Three months into being the company's new CEO, Bob Trunzo says things have proceeded pretty smoothly, and that he's found credit unions "appreciate the continuity and the stability of the company" and that its focus will continue to be on lending channels and member-facing products, with nothing "earth-shattering" in the pipeline.
Which I'm going to assume is probably just fine with most CUs, which have had their earths shattered plenty over the past few years, thank you.
Those past few years, especially the recessionary years, have had as much of an effect on CUNA Mutual and insurance executives as they have credit unions, according to Trunzo. "The company is leaner and a little more focused on the member, because that affects capital and how we remain relevant to credit unions," Trunzo said of the recession, adding, "When you stand by the customer during a difficult time that bond and partnership gets stronger."
Greater App-titude
Looking forward, Trunzo, who succeeded Jeff Post as CEO and who has been with the company for nearly nine years, said CUNA Mutual will continue to place a premium on mobile solutions, such as its AskAuto app and MemberZone app (for its financial advisors). He noted that in 2011 4% of the loan apps it was seeing were coming from the mobile channel; by 2013, it was 20%.
If you and I are playing Word Association and I say "nimble," I'm betting you don't shout "insurance company." And yet that's what Trunzo said CUNA Mutual has strived to become, especially in that mobile/tablet channel. "We've innovated with mobile devices and Web-based solutions. Most companies have been slow adopters, but I think we've probably been faster than most."
To better deliver on the consumer experience it looked outside CUNA Mutual to hire Susan Sachatello away from Land's End and Limited Brands to be its new SVP and business leader of Trustage, the company's consumer business. "We said we have enough actuaries and underwriters; give us someone who understands the experience members want. Pretty soon you have an internal culture in which you are getting innovation from the ground up. The team that drives that member experience is younger and more channel-oriented. Many of the innovative channel techniques we have brought to the table have come from retail."
But not all channel experiences are inherently alike. It's one thing to spend 99 cents to buy a song from iTunes, it's quite another to deliver all the disclosures that come with an auto loan or insurance policy. Trunzo said CUNA Mutual has worked to boil down products and associated disclosures to be as simple and clear (but still legal) as possible.
"We've also aligned our spending in call centers to match that technology and experience. That's a lot of work to create that positive member experience. We closely monitor feedback and (the resulting reports are) required reading for our senior execs. Those surveys really help us. We take it and we act on it and it shapes our product thinking."
Some other thoughts shared by Trunzo during a sit-down with Credit Union Journal:
- Despite the spotlight on mobile, he said the company still very much likes the "direct" channel, and has about 400 CBSI reps in credit unions. "It's more face-to-face with financial planners," he said.
- Under Jeff Post, CUNA Mutual diversified its business lines, including expansion into crop insurance. Trunzo said he has no similar expansion plans on his calendar. "We're really happy now with the diversity we have. We are really confident we can continue to grow the credit union business."
- Trunzo, who oversaw rollout of the new Trustage retail line prior to being named CEO, said he remains "very happy" with that rollout. "The lesson learned in Trustage is if you create and brand and support a value promise and an experience that is different and focused, credit unions will embrace it." Trustage added one-million members in 2013 to bring its total to 14.3 million.
Target, Financials & The Future
- The Target breach hasn't meant any losses to CUNA Mutual from CUs filing claims, but it still has had an effect. "One of the things it has made us do is to continue to go back and look at how we are protecting our own member data and what can we learn from that breach. We take cyber-security very seriously."
- Trunzo said CUNA Mutual exited 2013 with good financial momentum. It recorded $162 million in net income in 2013 on total operating revenue of $2.8 billion. Strong results in lending and its lending, life, health and casualty products helped offset weather-related losses in crop insurance.
- What's ahead? "I think over the next year what you will see from us is more clarity around our short- and long-term vision. We are driving toward what I think will be a compelling issue for our stakeholders."
Frank J. Diekmann can be reached at
