ST. PAUL, Minn.—A new study has found credit union members are more likely than non-credit union members to have ancillary insurance protections—roadside assistance, vehicle and property protection, extended warranties, etc.—for their high-value purchases.
The study was conducted by Securian Financial, which said it surveyed just over 1,000 consumers, of which 59% (616) were credit union members and 41% (420) were not.
The company reported that on all 15 ancillary insurance protections asked about in the survey, more credit union members than non-credit union members said they owned the coverage—with vehicle-related protections the most commonly owned by both consumer segments, followed by protections for personal property.
Covering the Expensive Stuff
“Our study found that consumers prioritize protections for expensive items like their vehicles, cell phones and big-ticket household goods because they fear the potential financial loss of costly repairs,” VP-Affinity Solutions Matt Bauler said in a statement accompanying release of the study. “Perhaps not surprisingly, due to the strong relationships credit unions have with their members, our study found credit union members are more likely than non-credit union members—often much more likely—to own insurance and related products that financially protect their purchases.”
What’s Popular
The graphic below reveals which services were most popular among those surveyed:
“Consumers associate financial wellness with stability and lack of worry when it comes to money—and many view insurance protections as key to achieving it,” Securian Financial said. “Nearly two-thirds (63%) of survey respondents said they typically protect large purchases with insurance or warranties. Again, more credit union members (69%) said this than non-credit union members (56%).”
Delayed by Economy
But, while consumers may see how ancillary protections support their financial wellness, the current economic climate limits their ability to protect everything in their lives that they would like to cover, Securian Financial said in its analysis of the findings..
The survey found 51% of non-credit unions members and 43% of credit union members said in the survey that insurance protections are not a priority for them right now due to the economic climate squeezing their finances.
Young Generations Show Interest
According to Securian Financial, the survey found there is interest in learning more about ancillary insurance protections, especially among younger credit union members.
‘Extremely Interested’
More than half of Generation Z and Millennial credit union members surveyed said they were very or extremely interested in several ancillary insurance protection products mentioned in the study. Vehicle protection scored particularly high, with 71% of Generation Z and 64% of Millennial credit unions members saying they were very or extremely interested in learning more about the product.
The survey found the most desired insurance protections Millennial survey respondents said they don’t have but wish they did are identity theft protection, term life insurance and accident insurance. For Generation Z, cell phone insurance, vehicle protection and identity theft protection are the top three most desired protections they currently are without.
What Credit Unions Should Emphasize
“Even in this tough economic environment, our study shows credit unions can grow their ancillary insurance revenue by meeting the needs of their younger members who want to better protect their financial security,” Bauler said in a statement. “Credit unions should emphasize the peace of mind these products may offer and use real-life member stories when communicating about the protections with their younger members.”
