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.


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