Banks have become a force that carriers have to reckon with in insurance distribution. In 2003, the value of insurance products sold by U.S. banks reached $78.1 billion, more than double the amount just four years earlier, according to a report by the American Bankers Insurance Association (ABIA), Washington, D.C. Two trends have contributed to the growth of these sales: The continued acquisition of agencies by banks, and the growth in pre-existing programs, according to the ABIA. In recent years, the participation rate for mid-size banks ($1 billion to $10 billion in assets) has approached that of larger banks. Conversely, about one-quarter of banks with assets less than $1 billion are distributing insurance products.Customer Focus
Customer type that banks are selling insurance to Community banks that sell general insurance are as likely as large banks to target both personal and commercial customers.
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