CUNA Mutual group has been recognised as one of the world’s most ethical companies for the second year in a row.
International think-tank, The Ethisphere Institute cited that CUNA Mutual Group, insurers to the mutual sector, outperformed its industry peers in business ethics and social responsibility practices.
CUNA Mutual was one of five in the financial services companies that made the 143-strong list, where competition stemmed from more than 23 countries and 27 industries. The Ethisphere analysis assesses a set of core competencies around corporate governance, risk, sustainability, compliance and ethics.
CUNA Mutual Group was founded in 1935 by credit union pioneers, and today still works exclusively within the mutual sector and value-aligned lending institutions. Paul Walsh, CEO of CUNA Mutual Europe said: “CUNA Mutual Group is committed to working ethically – and we evidence this by how we deliver exceptional support to our customers, and our employees.. We also demonstrate this in the products developed uniquely for the mutual sector. No other insurer is searching for a transparent and affordable solution to the current lack of financial protection in the UK, but we have offered lenders and borrowers this solution in Waiver.”
Following the PPI mis-selling scandal, 42 per cent of individuals get into trouble within three months if they lose their job because they do not have financial protection. Despite having no upheld PPI complaints against it, CUNA Mutual is the only business to business insurer offering waiver in the UK to provide a safety net for its lenders and their members.
A drastic move away from the PPI model, CUNA Mutual’s Payment Waiver is simply a feature of the loan, and comes at no additional cost to the borrower. Loans with a built in waiver means that if member is unable to work due to an accident or sickness, they simply contact the lender and the payments are waived for up to 18 months. No arrears are built up, no credit scores are affected and throughout the process the loan amount continues to decrease while the person is off work, providing peace of mind when they need it most.
Three credit unions currently offer loans with waiver built in, Plane Saver, Clockwise and Scottish Police credit union, and the first building society is set to be announced in spring.
“The World’s Most Ethical Company assessment provides a means to analyse an organization’s performance in an objective, consistent and standardized way,” said Timothy Erblich, Ethisphere, chief executive officer. “CUNA Mutual Group is not only committed to its communities, but to driving performance through leading business practices. We congratulate everyone at CUNA Mutual Group for their extraordinary achievement.”