ACLI report: bank insurance sales depend on managerial commitment.

Insurers have been notoriously poor at selling in banks, despite the venue's access to middle-income Americans. A recent study by the American Council of Life Insurers reports that "the onus is on the insurer to go deeper into the bank management structure and ensure that the insurance process not only fits into the banker's daily routine," but also provides support to the referral process. Such support could include incentives, rewards and contests, according to "Catalyst for Change: Next Steps in Bridging the Cultural Divide Between Banks and Life Insurers." The report advocates creation of a joint business plan and educating internal bank staff about insurance product margins vs. those of bank products.

The 21 recommendations in the report came from three ACLI-sponsored workshops with senior executives of banks, life insurers, consultants, professional advisers and industry experts.

Estimated Bank
Insurance Premiums
($ Billions)

                2003    2002    2001    2000    1999

Annuities      $51.6   $47.7   $37.1   $31.0   $24.2
Credit Gov.      2.4     2.5     2.8     2.7     2.9
Commercial
Lines           14.2   11.58     8.9     5.4     4.4
Personal
P/C Lines        6.3    5.04     4.1     3.7     3.1
Individual
UH DI            3.6    2.82     2.3     2.1     1.8
Total          $78.1   $69.5   $55.2   $44.9   $36.6

Source: American Banker Insurance Association, ACLI