ASI Advocacy Newsletter
Staying connected with credit unions, one issue at a time.
CUChoice Initiatives
American Share Insurance (ASI) and Excess Share Insurance (ESI) recently released a new deposit insurance reform study authored by finance and entrepreneurship professor Glenn Grossman. As policymakers continue examining the future of deposit insurance, the report explores whether a system designed during the Great Depression remains the best fit for today’s financial marketplace. The study reviews the evolution of deposit insurance, the role of private insurance alternatives, and key considerations for policymakers, including financial stability, taxpayer exposure, market incentives, and consumer choice.
Over the past week, ASI has shared the report with coalitions, think tanks, congressional staff, and other stakeholders in Washington, D.C., helping policymakers and industry leaders better understand that private deposit insurance is an existing, proven option that should be part of broader conversations as Congress evaluates potential reforms to the deposit insurance framework.
As policymakers, trade associations, and stakeholders continue discussions on potential deposit insurance reform, ASI has been actively engaging in the conversation and educating decision-makers on the role of private deposit insurance within the financial services system.
Glenn Grossman
Professor of Finance & Entrepreneurship
Grace College in Indiana
Make Your Voices Heard
The strongest advocates are credit unions themselves. As ASI works to expand private deposit insurance options and strengthen the state charter system, your voice can make a meaningful difference.
If you are located in Florida, Kansas, or Kentucky, please consider signing the CUChoice petition to show your support for providing state-chartered credit unions with additional deposit insurance options.
- Encourage your peers, colleagues, board members, and members in these states to sign the petition as well. Policymakers and regulators pay attention when support comes directly from the credit union community.
- Share your experiences and communicate with local, state, and federal policymakers about the importance of preserving choice, strengthening state charters, and ensuring credit unions have the tools they need to serve their members.
- Have ideas, questions, or a story to share? We would love to hear from you. Some of our most successful advocacy efforts have started with input from credit unions in the field.
- For more information, contact Jennifer Kelly at [email protected]
Top Five Facts about Private Deposit Insurance
- American Share Insurance (ASI), founded in 1974, is a member-owned company that provides deposit insurance to credit unions. Owned by the credit unions it serves, ASI currently protects the deposits of more than 1.3 million credit union members nationwide.
- ASI provides up to $250,000 in coverage per account, offering flexibility for members with multiple accounts. In more than 50 years of operation, no member has ever lost money in an ASI-insured account.
- The private deposit insurance model supports the flexibility of state-chartered credit unions, helping them meet the unique needs of their members and communities. This includes specialized lending for agriculture, local businesses, faith-based organizations, volunteer fire departments, and other community-focused groups.
- ASI works closely with credit unions, states, and state regulators to support a safe and sound credit union system while preserving the choice and flexibility that make the state charter unique.
- Our model is designed to work with credit unions during periods of financial stress. Through ongoing monitoring, strong reserves, and capital support when appropriate, ASI has helped credit unions remain open, continue serving members, and recover from difficult situations.
Pictured: Minnesota Senator Nick Frentz | MnCUN Chief Advocacy Officer, Ryan Smith | MnCUN Director of Political Advocacy, Cynthia Callais
State Advocacy Updates
Tennessee and Minnesota both achieved significant milestones this year, with legislation advancing to allow or further support the private deposit insurance option. In both states, we are now awaiting final regulatory implementation.
These successes would not have been possible without the support and advocacy of the Tennessee Credit Union League and Minnesota Credit Union Network (MnCUN) as well as credit unions that helped educate policymakers and build support for these efforts. We greatly appreciate their partnership and leadership.
A special thank you to State Senator Nick Frentz for championing MnCUN’s legislation that gives state-chartered credit unions the choice of private share insurance.
Read article from America’s Credit Unions: “Minnesota laws expand innovation, state charter options”
Ohio House Bill 1761 was introduced in May—slated for testimony and committee review in early June.
Advocacy Updates
Tennessee and Minnesota both achieved significant milestones this year, with legislation advancing to allow or further support the private deposit insurance option. In both states, we are now awaiting final regulatory implementation.
These successes would not have been possible without the support and advocacy of the Tennessee Credit Union League and Minnesota Credit Union Network (MnCUN) as well as credit unions that helped educate policymakers and build support for these efforts. We greatly appreciate their partnership and leadership.
A special thank you to State Senator Nick Frentz for championing MnCUN’s legislation that gives state-chartered credit unions the choice of private share insurance.
Read article from America’s Credit Unions: “Minnesota laws expand innovation, state charter options”
Ohio House Bill 1761 was introduced in May—slated for testimony and committee review in early June.
Pictured: Minnesota Senator Nick Frentz | MnCUN Chief Advocacy Officer, Ryan Smith | MnCUN Director of Political Advocacy, Cynthia Callais
Federal Legislative Updates
We have strong support from Senator Catherine Cortez Masto, who is ready to introduce the Private Insurance Parity Act. To move forward, we urgently need a Republican co-sponsor in the Senate.
We are asking for your help. Outreach from credit unions is critical right now. If you have relationships with Senator Jim Banks (IN) or Senator Bernie Moreno (OH), please consider reaching out and encouraging them to support this bill.
Your voice can make the difference in getting this legislation introduced and moved forward.
For talking points or a draft email, please reach out to Jennifer Kelly.
Jennifer Kelly
AVP of Advocacy
American Share Insurance
[email protected]