Success Stories

• Helping a Credit Union understand its risk profile and obtain improved coverages

  Superior Federal Credit Union wanted to better understand their insurance coverage and develop strategies to more effectively manage their risk.  Superior did not have an existing broker relationship and felt it needed to bring in expertise to help them independently evaluate this. 

  Lockton helped Superior identify its risk profile and determine how to strategically manage it.  Despite having industry standard coverages, Lockton discovered numerous shortcomings that left them potentially exposed:

  • Coverage did not extend to many lending act claims, their broker dealer, or for their trust administration. 
  • The bond had restrictions that made it harder to get coverage for employee dishonesty. 
  • A coinsurance clause that could leave them with large parts of a claim uncovered.
  • Cancellable policies at any point (with 30 days notice) even though they were annual or three-policies.

  Lockton worked with the existing insurance company and others to address the shortcomings.  Four alternative programs were developed that eliminated the deficiencies, many for the same or less premium.  Lockton helped Superior objectively evaluate all the alternatives so they could be more comfortable knowing that their insurance programs now provide the right coverages for them.

• Addressing gaps in a Directors and Officers program

  With increasing questions and interest from the Board over the credit unions Directors' and Officers' coverages, a Credit Union asked Lockton to do an in depth evaluation of their current program and help them with the renewal.  The credit union wanted to determine the right D&O limits, consider if they needed "Side A Excess" limits, and ensure their coverages were sufficient. 

  Reviewing their industry standard policy identified several common restrictions:

  • the policy was rescindable, meaning it could be voided under certain circumstances,
  • provisions governing when a claim is discovered and reported could result in claims being denied
  • no further coverage for legal costs if the carrier wanted to accept a settlement offer
  • no ability to control selection of defense counsel
  • no coverage for imposed civil money penalties

  Lockton worked with management to remarket their program to the entire insurance market and several options were developed.  Ultimately the credit union secured a new program, that addressed each of these restrictions, added more coverage including a separate "Side A Excess" limit, and significantly reduced their premium.

• Developing an integrated strategic plan for benefits/retirement and healthcare reform

  With the pending healthcare reform, a credit union wanted to develop a strategic plan on what their benefits and retirement program should look like.  They sought Lockton's expertise to evaluate their current programs and formulate new plan design and strategies. 

  As with most credit unions, employee benefits were the second largest expense item and had been growing at an unsustainable rate.  The current pension plan disproportionately favored the older workforce, hindering recruitment and retention, which lead to under-utilization of the 401k plan.  The medical plan, however, encouraged over-utilization, driving cost up. 

  Lockton helped the credit union develop a five-year strategic plan with coordinated health risk management techniques that drove down benefits costs by 20%, pension costs by 15%, and enhanced the 401k plan.  Additionally, management now has a plan to address current funding needs and tackle healthcare reform implications.

• Starting Anew with Insurance

  A credit union in Ohio worked with the same carrier for 50 years, since its founding in 1962. Lockton stepped in to help guide them through the entire insurance and risk management process including a full coverage audit, benchmarking and final plan selection. With Lockton’s help, the client fully examined all of their options and made the best decision for the company.Lockton developed a new program that reduced their cost by 20 percent and fixed more than 30 coverage gaps.