Iowa Credit Union Acquires Digital Insurance Business
Coverage Direct is now a CUSO for Collins Community CU.
Collins Community Credit Union of Cedar Rapids, Iowa announced Wednesday that it has acquired the Coverage Direct digital insurance business and folded it into its family of CUSOs.
Zach Mefferd and Ryan Swalve launched Coverage Direct in 2016 in a 700-square-foot office in West Des Moines, Iowa. It leverages insurance technology to provide turnkey digital insurance agencies to credit unions.
It is now a CUSO of Collins Holding Company, a wholly-owned subsidiary of Collins Community ($1.5 billion in assets, 91,305 members).
Stefanie Rupert, president/CEO of Collins Community and chair of Collins Holding Company, said having Coverage Direct structured as a CUSO allows greater proceeds to return back to its credit union partners.
“There are options for credit unions to own their book of business or receive proceeds of the policies placed. It’s really the ideal scenario,” Rupert said.
“Zach and Ryan piloted a white-label insurance agency, Collins Insurance, that is proving to be successful for both the credit union and its members,” she said. “I look forward to bringing more opportunities and value to the credit union movement with this partnership.”
Coverage Direct’s website said its business model allows credit unions to offer a product every member needs. “Before funding a home, auto, or business loan, you always require proof of insurance. Why not fill that need on the spot? Your clients will welcome the opportunity to acquire insurance from someone they already trust.
“It’s a natural, convenient addition for them and an additional recurring revenue stream for you. Win-win,” as stated on the website.
Mefferd said Coverage Direct always aligned with the credit union movement’s People Helping People philosophy.
Those at the company “pride ourselves with being able to offer cutting-edge technology like the largest insurance agencies, but with the added component of a service team who prioritizes being genuine and caring,” Mefferd said. “And now, with this partnership and being a CUSO, that gives us an even better platform to serve the credit union industry.”
The vision of Collins Holding Company is to support credit union growth and innovation by driving solutions for the distinctive challenges credit unions face. Their CUSOs include commercial and small business lending, insurance, prefunded health benefits, executive benefits, investment advisory and real estate. One of the CUSOs is CourseMark, LLC, of Wayne, Pa., which offers credit unions prefunded employee benefit plans, executive benefit plans, charitable donation accounts, and advisory and portfolio management services.
Other credit unions forming digital insurance CUSOs this year included Suffolk Federal Credit Union of Medford, N.Y. ($1.6 billion in assets, 67,435 members) in April and Greater Texas Credit Union of Austin ($981.9 million in assets, 81,954 members) in January. Both were developed through Insuritas, a digital insurance agency platform provider based in East Windsor, Conn.