A Case Study of Fairwinds Credit Union’s Groundbreaking Online Insurance Agency (Webinar Handouts)

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