a case study of fairwinds credit union’s groundbreaking online insurance agency (webinar handouts)
DESCRIPTION
Fairwinds Credit Union launched a successful insurance agency, having over 5,000 members visit and shop for insurance online in just 30 days in this recorded webinar with Insuritas and Fairwinds Credit Union. Download the presentation slides at http://www.nafcu.org/insuritasTRANSCRIPT
Opening an Insurance Aisle @ Fairwinds CU
December- 2011
• Jeffrey Chesky– President & CEO - Insuritas– Founder, BIS/Insuritas– Experience
• Fleet, CBT, Bank of New England• MassMutual
– Contact Information• [email protected]• (860) 653-1134• www.nafcu.org/insuritas
Moderator
• Phil Tischer– Chief Operating Officer
• Fairwinds Credit Union– $1.5 b in assets– 147,000 members– Orlando, Florida
Executive Panelist
Phil Tischer, COOFairwinds Insurance Agency
• Founded:1998, Purchased ‘04 by JHA• Taken Private 6/08• Client Base: Financial Institutions Nationally
• $130 m to $15 b in assets – avg. $2.3 b• Over 4.2 million households
• Business Model: Two core capabilities• Install & Operate Start-Up Agencies • Take over operations or integrate into existing agencies
• Master Agency Operations Center in Hartford, CT• Process 6,000 leads per month• Quantum Agency Platform integrates into financial institution
operating environment.
Insuritas History
SPECIALITY
THRESHOLD
DIFFERENTIATED
LOW
HIGH
HIGH
LOW
PerceivedAdded Value
CompetitiveIntensity
Middle Mkt.Commercial
StandardPersonal
SmallCommercial
Large Commercial
SubStandardPersonal
COMMODITY
100% of Fairwinds Members Buy Insurance EVERY year
• 100% Members Buy Annually• Annuitizing Fee Income• Drives Earnings • Promotes Retention• Protects from Incursion • Expands Wallet Share• Expands Market Share
80-90%
• There are TWO times when Fairwinds members need to talk about insurance1. Loan Requires Insurance2. Renewal Notice in Mail
• There is new place where members are interested in shopping– On Line Banking & Social
Media
Instant of Interest
Time
Response Rate
The Science of Integrating into the ‘Instant of Interest’
The Fairwinds Executive Challenge
• Decide to own an Insurance Agency• Decide between Buy, Build, Outsource or Partner with local
agency• Decision to Outsource with Insuritas• Build a sales & marketing plan focused on tightly managed
contact information transmission to agency around member needs
• Leverage the CU’s Brand Equity, online banking and social networking activity
• Utilize sales, carrier relations and ‘backroom’ operations of Insuritas Master Agency
• Provide executive leadership to Fairwinds personnel on agency value proposition
Manage Capital, Execution & Reputation Risk
Questions for Mr. Tischer
Why did you decide to enter the P&C business?
Questions for Mr. Tischer
Did you consider purchasing a local agency?
Questions for Mr. Tischer
How do you connect members to the agency? –
Questions for Mr. Tischer
Do you have goals – and are they important?
Questions for Mr. Tischer
Are your customers buying insurance from your agency?
The Technology & Social Networking Challenge – Connecting with Quantum
• Systematically collect policy expiration dates– On-boarding– Online Banking– On Platform
• Seamlessly offer home insurance quotes during mortgage application
– Quantum Platform integrates DU File into agency system
• Quickly offer auto insurance quotes during consumer loan process
– Quantum Platform integrates consumer loan application into agency system
• Use direct mail and email to communicate to member when they get a bill in the mail
– Direct Mail– Email– Online Banking reminder
FAIRWINDS X-Date Collector 24,000 already
FAIRWINDS X-Date on Platform
Member Data
Member Data
FAIRWINDS Social Media Connection
Leveraging Email & Online
Postcards to the Home
Leveraging Brand & Value
FAIRWINDS On-LineLogout
Quantum @ Work - Mortgages
Member Data
Saving Time & MoneyDelivering Better Service Experience
Member Data
Leveraging Quantum – Auto Loans
Member Data
Questions for Mr. Tischer
How have your crew members accepted insurance as a new product offering and a permanent aisle in the store?
Questions for Mr. Tischer
Tell us about the web portal and your members online shopping for insurance.
Your Auto Quote in Minutes
Nation’s First Bind-on-Line
Questions for Mr. Tischer
Tell us about the Agency Install – was it effective, were technology and telecommunication links easily integrated?
Questions for Mr. Tischer
You are the key executive in charge of the agency – along with all of your other COO responsibilities – a lot of executives on this call wonder about how much time and effort you put into this initiative month over month?
Questions for Mr. Tischer
Tell us about the financial reporting, information transmission, and agency activity reporting inside the program?
Questions for Mr. Tischer
Any closing thoughts on your decision to open an Insurance Agency Aisle in your store?
Questions & Answers
Contact InformationJeffrey Chesky
[email protected](860) 653-1134
www.nafcu.org/insuritaswww.insuritas.com