CUNA Mutual Insurance Society (CMIS), which has enjoyed a 62-year relationship with credit unions and co-operatives in Jamaica, has been reorganized into a stock insurance company and renamed CMFG Life Insurance Company.
CMFG is the acronym for CUNA Mutual Financial Group.
However, reorganization will not result in any changes in existing coverage or services provided to policyholders or in the existing management, offices, staff or distribution systems, according to a release quoting David Wan, country manager for the Jamaica branch of CMFG Life Insurance.
CMFG is a 100 per cent subsidiary of CUNA Mutual Holding Company, a new mutual insurance holding outfit. Both CMFG Life and CUNA Mutual Holding are domiciled in Waverley, Iowa, United States.
Wan said the reorganization would benefit policyholders since it would allow the organization to meet the current and future needs of the market with greater flexibility.
It will “position us to be able to raise capital in the major … markets, if necessary, while preserving the mutuality of the Group, via the mutual holding company structure,” Wan added.
However, he has assured policyholders that “these changes will not affect their policy rights. There will be no change in insurance coverage, benefits or premiums."
In addition, he said, "policy rights arising from insurance and annuity contracts issued by CUNA Mutual Insurance Society will remain a contractual obligation of CMFG Life Insurance, as a stock (limited liability) insurance company.”
Wan also said the reorganization would not result in any material changes in the operations of CMIS, which officially transitioned in the local market on February 1, 2012.
Current and future policyholders of CMFG Life will be members of CUNA Mutual Holding Company, and will continue to have the same voting and other membership rights, the release said.
CMFG Life remains fully obligated under all of the former CMIS policies, it added.
CUNA Mutual provides credit life and disability, group life and disability, individual life and annuities, and qualified pension products for its niche credit union market.
At the end of 2010 the organization had approximately 510,000 policyholders and US$1.88 billion in policyholders’ surplus. For the same year, CMIS had assets of US$15.4 billion and revenues totalling US$2.77 billion.
In Jamaica, CMFG Life offers products and services such as the family indemnity plan, loan protection insurance, life savings insurance, group real estate insurance and the golden harvest savings plan, through credit unions and affiliates which have more than 900,000 members.