June 15, 2022
Snippets on service with Wayne Peacock, President & CEO of USAA
Insurance experts Aaron Abrahms, of Winged Keel Group and the Columbia University School of Wealth Management, and Ross Buchmueller, CEO of PURE Insurance, host Insurance 101 on SiriusXM’s Business Radio.
In each episode of the special limited-engagement series that aired in the spring of 2022, Abrahms and Buchmueller led discussions with some of the most accomplished names and CEOs in the industry. Here is our summary of their this episode with Wayne Peacock, President & CEO of USAA.
Not your average policyholder
Similar to PURE, USAA’s customers aren’t just policyholders—they’re members. Both companies have a reciprocal structure, meaning they are designed to serve a specific customer with similar values, interests and needs. For PURE, the niche is high net worth individuals and families and for USAA, it’s active or former military service members and their families.
USAA began as an auto insurance provider to Army Corps members in 1922. In the century since, USAA has grown into a Fortune-500 company that offers property, casualty and life insurance; banking; investing; and financial planning.
The reciprocal model, also known as the mutual model, enables both USAA and PURE to put power back in their members’ hands. Members own the insurance company, so when it comes to the alignment of interests between the company, its members and other stakeholders, everyone is on the same page. Peacock explains it here.
Placing power in the hands of members
With members at the model's core, members can trust that their insurance works for them. Not only does it create alignment from the top-down, but the model also lends itself to more generous coverage options, higher-touch service, better pricing and increased savings.
In practice, though, the value of a reciprocal model becomes more clear than ever in the wake of catastrophe. Hear Buchmueller and Peacock discuss below.
A word on service
Ahead of its centennial, Peacock has had the opportunity to gain perspective on the success of USAA by looking back in time—literally. Listen as he discusses digging into company archives only to be reminded, clearly and certainly, of USAA’s foundational purpose.
Keeping members at the core of the model means that service is the central focus, delivering the kind of experience policyholders seek. The levels of customer satisfaction and trust are what unite the likes of USAA and PURE and make the membership model stand out in the broader insurance landscape.