Banks Selling Insurance: Formulas for Success
U.S. Banker (10/00) Vol. 110, No. 10 p.96; Heuton, Bruce
Regional banks are turning to insurance for a new
source of revenue, but many are focusing their efforts on
insurance customers ill-suited to the banks' existing strengths,
according to a survey performed by the business consulting
division of Arthur Anderson. The time to market and revenue
growth of a bank's insurance operations would benefit
considerably from choosing insurance products best suited to
current customers and existing sales channels. For example, many
banks are choosing to sell property and casualty insurance and
discovering that they must invest in an entirely new operation
because most sales occur along with another product and outside
of the branch. Insurance products such as long-term care
policies are better suited to a regional bank because of its
existing relationships with customers and because branch staff
can be readily trained to sell these policies. An effective and
successful entrance strategy concentrates on identifying and
exploiting the existing synergies in a bank's operations.