Insuring for life: an overview of why banks should add insurance sales--plus how they can enter the business and market products effectively.
ABA Bank Marketing › Vol. 34 Nbr. 3, April 2002
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Insuring for life: an overview of why banks should add insurance sales--plus how they can enter the business and market products effectively.
There are many reasons why banks should consider selling insurance. First, insurance is a good fit for financial institutions. Second, compared to other sources of bank income, insurance sales have relatively low risk. Insurance, for example, has no affect on capitol and no interest-rate risk. Third, insurance fees produce a regular cash flow, which is always helpful. Lastly, banks have a competitive advantage over insurance agencies in that financial institutions have more information about their customers--enabling them to identity insurance needs and target potential customers more efficiently.
In light of the attractions of the insurance market, this article will examine the basic steps that financial institutions have to take to enter the insurance market and market insurance products. Feasibility ...See the full content of this document
