MADISON, Wis. — TruStage said it expects this month to restore several services disrupted by a July cyberattack, but life insurance systems will require several more months of work, while also saying it will use Q2 royalty payments to determine Q3 royalty payments.
In a new update, CEO Terrance Williams acknowledged that recovery has taken longer than anticipated and that credit unions have faced increased workloads, difficult member conversations and manual processes during the disruption.
“While we still have considerable work ahead, October will be a very active month across several areas of our business,” Williams wrote.
He cautioned that returning capabilities will not immediately restore full service. Some processes will remain limited or require manual workarounds while the company restores underlying systems.
Restoration Plans
TruStage’s phased recovery is focused on restoring services in a stable, secure and resilient manner, Williams said. He outlined the following developments:
- Retirement: BenefitsForYou participants who previously established digital accounts have begun regaining access to certain online information, including account balances. Phone support remains available.
- Credit Union Protection: TruStage anticipates restoring the ability to issue and update commercial policies for credit union customers.
- Lending: The Payments Protection Calculator Service is expected to return later in October to support November calculations. Near the end of October, TruStage expects to begin supporting new guaranteed asset protection, mechanical repair coverage and payment protection business while reducing manual workarounds.
- Accidental Death And Dismemberment Insurance: Restoration progress is expected to expand the company’s ability to handle claims and servicing requests over the next month.
- Life Insurance: TruStage has begun processing policy surrender requests, but backlogs and delays remain. Restoration work is expected to continue over the next several months.
Hardship Assistance Begins
Williams also said the TruStage Foundation has partnered with an unnamed third-party nonprofit to assist customers experiencing extreme financial hardship directly connected to the cyberattack.
Potential needs include housing instability, the risk of utility shutoffs, dependent care, transportation problems and other urgent circumstances.
TruStage teams are reviewing claims and customer inquiries and referring potential cases to the nonprofit, which independently determines eligibility and provides assistance directly to customers, Williams said.
Initial payments have helped prevent the loss of housing and fund repairs to a family’s only means of transportation to work, according to the update.
The assistance is a gift that does not require repayment and is separate from any claims payments or benefits customers are entitled to receive, Williams said.
Modernization And Financial Impact
TruStage is rebuilding significant portions of its technology environment in the cloud, accelerating modernization and investing in systems intended to improve long-term security, stability and resilience, Williams said.
Although the cyberattack has had operational and financial consequences, the company does not expect it to materially affect its long-term financial position or ability to serve credit unions and their members, he said.
Williams cited S&P’s recent reaffirmation of TruStage’s A+ financial strength rating. He also said A.M. Best and Moody’s issued public comments in August indicating no changes to their existing ratings or outlooks following the attack.
“While the numbers matter, we know confidence is earned through actions,” Williams wrote. “We will continue working with urgency, communicating transparently and supporting your teams as restoration advances.”
Update on Royalty Payment Amounts
Separately, TruStage said it will use second-quarter royalty payment amounts to make third-quarter payments to credit unions because its ongoing systems outage has prevented it from reliably calculating the amounts owed, the company said in an update to credit unions.
The temporary payment approach applies to TruStage’s Consumer Insurance Solutions business and comes as the company works to recover from the cyberattack that knocked many of its systems offline, the company said.
TruStage said matching the second-quarter payments are intended to approximate the amounts due for the third quarter of 2026. Once actual amounts can be calculated, the company said it will notify each credit union of its third-quarter royalty payment amount.
Additional Details
Any underpayment will be added to the next royalty payment owed to the credit union, TruStage said. If the estimated payment exceeds the actual amount owed, the company may deduct the overpayment from future royalty payments.
TruStage added the approach does not modify or amend any existing contract, agreement or policy between the parties.
