Source: Jack Henry & Associates
Jack Henry & Associates, Inc. (JKHY), a leading provider of integrated computer systems and ATM/debit card/ACH transaction processing, today announced that its Banc Insurance Services (BIS) subsidiary has been selected to provide UniTrust Financial Services, LLC, one of the nation's leading CUSO consortiums, with a turnkey outsourced insurance agency solution.
UniTrust was created by a group of credit unions that serve the DC metropolitan area, and provides the participating 11 credit unions with the ability to pool their capital resources to fund ongoing product, service, and technology enhancements that benefit their members. These credit unions collectively represent more than $3 billion in assets.
According to John R. Blair, Jr., chairman of UniTrust, "Credit unions are creating strategic partnerships to leverage their resources and pool their capital investments to further expand the range of products and services available to their members. Initially, UniTrust built a successful and growing investment program that is shared by our credit union affiliates. Based on our goal to position each of these member-owned cooperatives as a highly competitive one-stop, single source financial services organization, we then decided to establish a full-service insurance agency. Our staff evaluated all of the operational alternatives, and BIS clearly demonstrated that its turnkey outsourcing solution will expedite our speed-to-market with high-demand insurance products, will require nominal start-up costs, will virtually eliminate operational risks, and will enable us to leverage extensive industry expertise and proven sales programs from day-one."
Jeffrey Chesky, president of Banc Insurance Services, said, "The market place continues to confirm that our insurance agency outsourcing solution is the ideal choice for growth-focused, cost-conscious organizations like UniTrust. We are particularly excited to support this collaborative CUSO, its participating credit unions, and their distinct member bases with the insurance distribution solution that provides the best combination of price, convenience, and selection. Entering the insurance industry is a strategic milestone for this CUSO and its credit unions, and the confidence they have placed in our end-to-end distribution solution is extremely rewarding."
BIS enables financial institutions to own a complete insurance agency without the significant capital investments required to build or buy an agency, or the inherent operational risks. Through a cost-effective outsourcing service, financial institutions leverage BIS' 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 seasoned sales professionals and proven sales strategies; complete back-office services, including billing and claims processing; and ongoing access to insurance industry experts. Insurance carriers provide the insurance products and assume both the underwriting risk and full responsibility for the policy benefits; BIS' insurance professionals deal directly with consumers and facilitate the entire distribution process; and the financial institution owns the entire book of business, including the member/customer relationships, the policies sold, ongoing policy renewals, and the resulting commissions.
Tony Wormington, president of Jack Henry & Associates, concluded, "UniTrust is another new client that exemplifies how our focused diversification acquisition strategy is expanding Jack Henry's market presence and potential. Our focused diversification targets best-of-breed products and services that can be sold outside our base of core information processing clients to virtually any financial services organization - regardless of asset size, charter, or core processing solution. We are excited about the market opportunities this acquisition strategy is generating, and about the significant new clients we are adding to our roster."