Build Your Credit Union s Insurance Business with Affinity Marketing

Build

 

Your

 

Credit

 

Union’s

 

Insurance

 

Business

 

with

 

Affinity

 

Marketing

May

 

16,

 

2013

    

10:00

 

– 11:15

 

a.m.

Facilitated by Stephen Arnold

Sponsored by

www.mcul.org

Exposition

INTRODUCTION

Stephen Arnold,

Vice President, Direct to Consumer TruStage™_{Auto & Home Insurance Program}

Stephen is responsible for helping to protect members with a broad portfolio of property and casualty products through a multi-media, multi-channel approach. His management of strategic partnerships with leading national property and casualty carriers, Liberty Mutual Insurance and Esurance, has attracted more than 50% of all credit unions in the U.S. and protected over 480,000 members.

– Liberty Mutual Insurance : “A” AM Best Rating (third highest on a 16-point scale), 3rd_largest Property & Casualty insurer in the U.S., 14 year partnership with TruStage Auto & Home Insurance

– Esurance and Allstate Company: “A+” AM Best Rating (second highest on a 16 point scale), third most shopped car insurance company among online shoppers.

Stephen has been a leader at CUNA Mutual Group since 2006 and is as a Credit Union Development Educator. Stephen earned an MBA from the University of Wisconsin-Madison and continues to call Madison Wisconsin his home.

Credit unions gain access to TruStage insurance through CUNA Mutual Group’s successful direct to consumer program, MemberCONNECT -- protecting over 13.6 million members.

TruStage Auto & Home Insurance

Program

Over $1 Billion of premium and more than

800,000 policies inforce

MEMBER MOMENTS VIDEO

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AGENDA

−

Insurance

−

Consumers

−

Growth

PART I: INSURANCE

61%

of Americans trust credit

unions, versus 23% of Americans

who trust the U.S. financial system

as a whole**

* LIMRA, 2010 Life Insurance Ownership Study ** 2012 Chicago Booth/Kellogg School Financial Trust Index

3 in 10

households

have no life insurance

protection*

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CONSUMERS DRIVEN TO PROTECT FAMILIES

77% of American employees say they live

paycheck to paycheck1

$68,274 is the median income it would take a

family of four to live a middle-class lifestyle2

even though the median household income is $50,0203

40% of U.S. households with children

under 18 could not meet everyday living

expenses with, or if they suffered, the loss of a

major breadwinner.4

50% of U.S. households have unmet life

insurance needs5

1 _{Source: CareerBuilder Survey, 2010}

2 _{Source: Pew Research Trends, The Lost Middle Class, Fewer, Poorer, Gloomier. August 22,2012} 3 _{Source: U.S. Census, 2012}

4 _{Source: LIMRA 2010 Life Insurance Ownership Study}

5_{Source: 2012 Insurance Barometer Study, Understanding Consumer Perceptions of Insurance LIMRA}

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WHAT’S STOPPING CONSUMERS FROM TAKING ACTION?

*Source: Trillion Dollar Baby Growing Up, Author(s): Cheryl D. Retzloff, 8/5/2011

35%

stated that

no one has contacted me*

54%

haven’t gotten around to it*

56%

feel they lack

knowledge (difficult to

know what to buy or how much to buy)*

77%

are faced with competing

financial priorities*

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DISTRIBUTION MODELS

−

Affinity Partner Model

−

Agency Partner Model

−

Agency Purchase Model

−

Hybrid Model

PART II: CONSUMERS

69%

of members say

their credit union is more

likely to do what’s best

for them, not just its own

bottom line.*

* “Customer Advocacy 2010: How Customers Rate US Banks, Investment Firms and Insurers”, Forrester Research, March 2011

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KNOW YOUR CUSTOMER

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UNDERSTANDING MEMBERS

AND THE MOMENTS THAT MATTER MOST

Members aged 55+ earnedADVANCED DEGREES, and their undergraduate degrees, in the SAME AMOUNT OF TIME as many Gen Yers take to earn their undergrad degrees alone.

Avg # of days 45-54 year-olds

spend shopping for a car _1970s 1990s TODAY

GRADUATING FROM COLLEGE

BUYING A CAR

PLANNING A WEDDING

How long does it take to plan for the big day?

Source: The Changing Life Events of Credit Union Members in 2013, conducted and sponsored by TruStage

6.5 Months

8 Months

11 Months

Avg # of days 18-34 year olds spend shopping for a car

100

82

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UNDERSTANDING MEMBERS

AND THE MOMENTS THAT MATTER MOST

51%

of 45-54 year olds saved for their kids’ college education(s).

Today

60%

of those 18-34 year olds are saving for college for each of their kids.

71%

of members aged 18-34

began their retirement planning

at age 25 or younger.

SAVING FOR CHILDREN

Younger members

are MORE LIKELY

TO PLAN for their kids’ COLLEGE EDUCATION(S).

44%

of those aged 45-54

began planning for retirement

at age 25 or younger.

PLANNING FOR

RETIREMENT

Source: The Changing Life Events of Credit Union Members in 2013, conducted and sponsored by TruStage

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CONSUMER CHANNEL PREFERENCES

MULTI-CHANNEL EXPOSURE CONTINUES TO BE A REQUIREMENT

DRIVEN BY CONSUMER PREFERENCE

1_{Source: LIMRA and Life Insurance Foundation for Education (LIFE), “The 2012 Insurance Barometer Study”} 2_{Source: LIMRA, Understanding Life Insurance Buyers and Nonbuyers, 2012}

3 _{Source: comScore’s 2011 Insurance Shopping Report}

83% of consumers use the Internet as part of their life insurance buying process1

51% of new life insurance customers purchased direct, either by mail or phone2

70% of consumers go online to get an auto quote3

33% of consumers call a local agent or work through a call center to make their

auto insurance purchase3

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PART III: GROWTH

WHAT IS A BRAND?

“A brand is the set of expectations,

memories, stories and relationships that,

taken together, account for a consumer’s

decision to choose one product

or service over another

.”

- Seth Godin, American entrepreneur, author and public speaker

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WHAT IS THE VALUE OF A BRAND?

A brand is an asset which can be valued

− For many companies, brand is the most valuable asset

− Per BusinessWeek: Brands account for more than one-third of shareholder

value

Top 10 Global Brands

Brand Value ($M)

As a % of Market Cap.

Coca-Cola $77,839 48% Apple $76,568 15% IBM $75,532 35% Google $69,726 37% Microsoft $57,853 26% GE $43,682 20% McDonald's $40,062 45% Intel $39,385 38% Samsung $32,893 14% Toyota $30,280 19%

Source: “Best Global Brands 2012, Interbrand; “FT Global 500”, Financial Times, 12/31/2012

A BRAND CAN BE A VALUABLE STRATEGIC

ASSET

“If this business were split up, I would give you the

land and bricks and mortar, and I would take the

brand, and I would fare better than you.”

- John Stuart, CEO of Quaker Oats from 1922 to 1953

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WHAT DOES A BRAND CONSIST OF?

−

A name

−

A visual identity

−

A set of values/attributes

−

A promise (of some benefit)

−

An experience

…a reason for a relationship

TruStage Insurance products

empower credit union members

to protect the achievements and aspirations

of the people who matter most in their lives.

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MemberCONNECT®

CUSTOMIZED BY CREDIT UNIONS

Empower members

to protect the achievements and aspirations of those who matter most

Create deeper and stronger

member relationships

Earn valuable

non-interest income Individual Life Auto Insurance Home Insurance AD&D Medicare program

Annuity (piloting in 2013)

_CHANNELS

Call Centers Online Mail Face-to-Face

MEDIA

Direct Mail Digital Media CU Referrals Cross Product Media

PRODUCTS

CREDIT UNION

VALUE

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TruStage.com

ONLINE PRESENCE

QUOTE AND BIND

auto insurance online

ENROLL in the no-cost

AD&D coverage and have the option of purchasing additional protection

ESTIMATE COST of coverage

and help understand amount of life insurance needed

Guided Demo

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SOCIAL MEDIA

FACEBOOK

RELATIONSHIP BUILDING

& PLACE FOR

CONVERSATION SOURCE OF CONTENT,

SHAREABLE & CONSUMER-FACING

AWARENESS OF RICH

HISTORY & CONNECTION TO CREDIT UNION MOVEMENT

“Like” Us Today!

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EMAIL MARKETING

TO PROSPECTS AND CUSTOMERS

Inform members about TruStage products that are available as a benefit of their membership

Inform about order status and updates on policy information Educate customers about additional products available and facilitate sales process

Communicate TruStage news PROSPECT MARKETING PILOT

TRUSTAGE CUSTOMER MARKETING

TO: Policy Owners & Members Interested in TruStage SENDER: TruStage

CONTENT: Created by CUNA Mutual Group CAN-SPAM/OPT-OUT COMPLIANCE: TruStage Owns

TO: Members SENDER: Credit Union

CONTENT: Provided by CUNA Mutual Group CAN-SPAM/OPT-OUT COMPLIANCE: Credit Union Owns

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MOBILE APPS

ATTRACTING YOUNGER BORROWERS

Device

Average

Age

Median

Age

Desktop/Laptop 40 29

Tablet 38 27

Smartphone 31 25

INTRODUCING AskAuto™

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AskAuto™

−

At the right place and at the

right time

−

Instant notifications to

Members

−

Attracts younger

demographic

−

Loan growth

−

Tools to enable efficient

mobile lending

_™

BRINGING IT ALL TOGETHER

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CONCLUSION

Q & A

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THANK YOU

Stephen Arnold

Vice President, Direct to Consumer

TruStage

™

_{Auto & Home Insurance Program}

CUNA Mutual Group

stephen.arnold@cunamutual.com

www.mcul.org

Annual Convention and Exposition