Academic journal article ABA Banking Journal

Banks' Insurance Sales Increase. (ABA Resources)

Academic journal article ABA Banking Journal

Banks' Insurance Sales Increase. (ABA Resources)

Article excerpt

Bank insurance sales increased a healthy 23%--an estimated $55 billion--in 2001, according to the American Bankers Insurance Association's Study of Leading Banks in Insurance.

The study, released during ABIA's annual conference in Dallas, reports that the increase is the strongest annual growth recorded in the study's five-year history.

The ABIA study provides a comprehensive look at bank-insurance sales and focuses on types of insurance sold, marketing and distribution strategies, employee compensation and financial results.

Sales of commercial lines (commercial property/casualty, group benefits) grew 65%--more than any other type of insurance--from $5.4 billion in 2000 to $8.9 billion in 2001. Commercial lines represent 16% of estimated insurance sales compared to personal property/casualty (8%, or $4.1 billion); credit coverages (5%, or $2.8 billion); and individual life/health (4%, or $2.3 billion). Annuities represent 67%--or $37.1 billion--of estimated insurance premiums sold in 2001.

"The study shows steady growth in bank insurance sales as the industry comes into its own two years after passage of Gramm-Leach-Bliley," says Ken Reynolds, ABIA managing director. "Teams of bank-affiliated insurance agents working with bankers, investment groups, and trust departments are fueling bank-insurance sales growth as bankers develop programs to best service customers."

The study also shows that the greatest increase in the percentage of banks offering general lines insurance (property/casualty and life/health) occurred in the $1 billion to $10 billion asset-size category--63% in 2001 compared to 52% in 2000. …

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