London, 27 May 2010
Mortgage Finance Gazette
CUNA Mutual Group has signed up seven building societies in the last year to distribute its products including mortgage payment protection insurance (MPPI) and life cover.
This represents a significant entry into the UK building society sector, which currently contains 51 societies. These new additions have contributed to a 7 per cent revenue growth for the company during the 2009/10 financial year.
This increase in building society interest has been fuelled by two major factors. The first was the 2009 launch of two signature products that are simplifying the insurance market, Mortgage Cover+ and Family Life+. The second reason is the level of existing business conversion that CUNA Mutual is able to achieve – around 90 per cent. CUNA Mutual says this is much higher than the industry average and means that building societies can make the switch with minimal disruption to their customer base.
Mortgage Cover+ offers mortgage policy holders who lose their jobs through accident, sickness or involuntary unemployment up to £2,500 a month for 24 months. Cover starts at under £5 a month.
Family Life+ is a whole of life protection product which provides cover for up to 12 family members, from £2 a month. Unlike traditional life insurance policies, it offers immediate financial payout enabling bereavement costs to be covered: 98 per cent of payouts happen in the first 48 hours of claims.
Jim Dunne, director of Scottish Building Society, which offers the Family Life+ product, commented: “This new insurance policy is low cost and designed to meet with needs of individuals who are without life cover or are perhaps under-insured. It is an ideal product to ensure a fast and straight forward pay out for families, particularly for expenses such as funeral costs.”
CEO of CUNA Mutual Group Paul Walsh said: “Our partners like the ease of doing business with CUNA Mutual due to our ability to remain true to our mutual ethos. That’s why more building societies have chosen CUNA Mutual, and we see this trend increasing throughout 2010.”
CUNA Mutual Group’s client base in UK includes Furness, Melton Mowbray, Progressive, Saffron, Scottish and Vernon Building Societies.