Chicago-Based Insurance Brokerage Pioneers Novel Product for Large Depositors
CHICAGO, Aug. 2, 2022 /PRNewswire/ — Financial institutions and large depositors – such as municipalities, school districts, government agencies and high-net-worth individuals – will benefit from the Excess Deposit Insurance Bond (EDB) now offered by Chicago-based Parr Insurance Brokerage that guarantees cash holdings in excess of the Federal Deposit Insurance Corp. (FDIC) $250,000 limit.
The highly rated EDB program, with robust limits available based on a review of an institution’s financial metrics, enables banks and credit unions nationwide to help attract larger deposits, avoid pledging securities and facilitate compliance with state regulations designed to protect publicly raised funds. EDB features an easy approval process; premiums based on limits used, not on limits available; and, with its competitive rates, is more cost effective than alternative solutions.
For depositors, in addition to the robust maximum limit, the EDB maintains insured status and the right to file a claim and offers a certificate of insurance issued in the depositor’s name. The new product is available for all depositor types and accounts, including money market or CD.
“Most banks limit the number of brokered deposits they take because examiners generally view these deposits as risky,” he said. Melissa Neis, vice president of Parr Insurance Brokerage, which has extensive experience insuring financial institutions and also specializes in protecting high-net worth individuals and families. “The launch of this comprehensive protection shifts indemnity to the insurer and streamlines the process for banks and credit unions to manage much larger sums of cash and better serve their clients.
“The EBD product should be attractive to banks because it is an easy way for them to attract new customers and retain their most valuable customers while also meeting their funding needs,” said Neis. “In turn, the EDB offers a guarantee to government entities including municipalities, school districts, park districts and others that the substantial sums of cash they often generate via referenda and bond issues will be protected.”
High-net-worth individuals and family offices, too, can benefit from the EDB, according to Neis. “With this product, a person who receives a major inheritance of several million dollars or a family managing large cash holdings can avoid any issues or concerns faced with the FDIC limits when planning to deposit such a sum,” she said.
“And, for those individuals and government units who prefer to keep their money ‘at home’ in the community at a local institution, the EDB can help.”
Additional information regarding the application process, limits, rates and other criteria are available by visiting www.parrinsurancebrokerage.com or contacting Melissa Neis at 773.489.3001 or [email protected].
Parr Insurance Brokerage is rated AM Best A (Excellent).
About Parr Insurance Brokerage
Chicago-based Parr Insurance Brokerage provides best-in-class, customized insurance coverage for financial institutions, high-net-worth individuals, business owners, property managers and more. As an independent insurance agency, Parr works with a national and global network of established, expert carriers. Parr Insurance provides coverage for high-value homes, professional exposures, valuable possessions and collections and coverage in response to the rapidly growing sharing economy.
SOURCE Parr Insurance Brokerage