Back in September I blogged about a recent statement made by CUNA MUTUAL/CUMIS regarding future actions they would take in light of recent downgrades by AM BEST and FITCH. It sounds like my forecast may have hit it's mark. I recently heard that the strategy is to non-renew credit unions and selectively offer renewal terms to those that CUNA MUTUAL/CUMIS feels are a good fit. The renewal will have significant changes to the terms of the prior policy.
This could be significantly challenging for most credit unions.
- Does your credit union have the resources and expertise to identify the change in terms and conditions?
- Does your credit union have the resources and expertise to understand how these changes effect the credit union's ability to transfer risk?
- Have you developed a contingency plan? Have you identified insurance brokers that can offer competitive terms and have the expertise to develop risk management strategies for credit unions?
This couldn't come at a worse time for credit unions.
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