The Irish League of Credit Unions (ILCU) has selected US specialist insurer Assurant Solutions to provide payment protection insurance to customers with credit union loans.
Assurant, which is listed on the New York Stock Exchange, will underwrite and administer a scheme aimed at the customers of individual credit unions.
The company employs 84 people in a claims processing centre in Cork, which opened in 1999, but its underwriting business is new to the Irish market.
"Having only recently entered the Irish insurance market, we are naturally delighted that the ILCU have chosen Assurant Solutions to be the sole underwriter of this product," said Ian Moffatt, managing director of Assurant in Ireland and Britain.
Designed to cover loan payments for a specified period if customers cannot work because of accident, sickness or involuntary redundancy, the scheme will be optional for people taking out a new loan and for the holders of existing loans. The scheme also pays a lump-sum to help clear a loan if a member suffers a critical illness covered by the policy.
Assurant develops and underwrites niche insurance products, service contracts and risk-management products in collaboration with financial institutions, retailers, motor dealerships and other credit providers.
