ProfitStars Insurance Agency reports three new outsourcing contracts
23 June 2006 | 2734 views | 0
Source: Jack Henry & Associates
Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading provider of integrated computer systems and ATM/debit card/ACH transaction processing, today announced that its ProfitStars Insurance Agency Solutions Group has been contracted to provide its outsourced property and casualty (P&C) insurance agency solution for three financial services organizations - Louisiana-based Red River Bank, Texas- and Oklahoma-based First National Bank of Weatherford, and Tennessee-based ORNL Federal Credit Union.
The ProfitStars Insurance Agency Solutions Group enables financial institutions to own complete insurance agencies without the significant capital investments required to build or buy agencies, or the inherent operational and reputation risks. Through a cost-effective outsourcing service, financial institutions leverage ProfitStars' turnkey insurance agency solution to offer the high-demand personal and commercial lines of insurance that are provided by many of the industry's leading carriers. This turnkey insurance distribution solution also provides proven sales professionals and strategies; complete back-office services; and ongoing access to insurance industry experts.
Red River Bank
Red River Bank serves the commercial, retail, and wealth management needs of central Louisiana residents; and also is in the process of expanding into the Shreveport and Bossier City markets in northwest Louisiana. According to Wylie Cavin, the bank's vice chairman and COO, "As a bank that is strategically focused on the growing needs of the local markets we serve, we recognize the need and benefits of offering our customers a full slate of financial products and services. We identified property and casualty insurance as a key product addition that will allow us to deepen our customer relationships, enhance customer convenience, and further strengthen our competitive edge. We believe the ability to establish and operate a full-service P&C insurance agency backed by the industry expertise and the competitive P&C insurance products provided by ProfitStars will expedite our time-to-market and maximize our near- and long-term success."
First National Bank of Weatherford
Texas-based First Baird Bancshares, a four bank holding company that includes FNB Weatherford, FNB Mid-Cities, FNB Baird, and FNB Munday; and is affiliated with First Security Bank in Beaver, Oklahoma, serves a diverse market that includes commercial, retail, rural, and agricultural customers. Zan Statham, director, said, "Based on the growing demand for property and casualty insurance products that we are experiencing, we decided to expand our insurance offering with P&C products for our retail and commercial customer bases. We evaluated our operational alternatives and decided an outsourcing relationship with ProfitStars is the most efficient and cost-effective approach for expanding our bank's insurance offering. Partnering with ProfitStars will enable us to own the agency and the entire book of business, will require minimal start-up costs, and will provide ongoing access to highly competitive P&C products, proven sales support, and complete back-office services."
CU Community, LLC
CU Community, LLC is a wholly-owned subsidiary of ORNL Federal Credit Union, a Tennessee-based community credit union with approximately $1 billion in assets and more than 100,000 members. According to Linda Morris, president of CU Community, LLC, "Our decision to incorporate a property and casualty insurance agency into our business operations was based on our desire to provide credit union members with the ability to obtain access to a wide variety of cost-effective insurance products and services with the ease and efficiency of 'one-stop shopping.' ProfitStars' insurance agency outsourcing solution provides us with a full-service agency that will support our focus on member service as well as providing the CUSO with a new avenue for revenue generation. We are excited about the opportunity to offer the P&C products provided through ProfitStars to ORNL FCU and other credit unions through our CUSO."
Jeff Chesky, group president of ProfitStars Insurance Agency Solutions Group, said, "We believe the diversity of these new clients demonstrates the broad appeal that our insurance agency outsourcing solution has. As financial services organizations of all asset sizes and charters look for new sources of non-interest income, new ways to expand wallet share, new points of competitive distinction, and additional ways to reinforce customer retention, we expect continued interest in our outsourced insurance agency solution. Our ability to dampen the capital risks and virtually eliminate the operational and reputation risks associated with launching an insurance agency solution makes our outsourcing approach extremely attractive for financial institutions that own or are considering purchasing a local agency."