ABA Banking Journal - September/October 2016 - (Page 51)

>>> BANK-INSURANCE SALES Building a Premium Business The not-so-complicated foundation of a healthy bank life insurance sales program BY JONATHAN E. CURLEY hy aren't we selling more life insurance?" When I first started consulting I'd usually answer by saying: "It's complicated." That answer usually didn't make the bank executive that asked the question very happy, and rarely resulted in getting me hired. But after more than 20 years of working on all sides of the bank-insurance business-as a producer, as a bank-insurance leader and insurance company life division head-it's clear to me that it is indeed very complicated. I had my own ideas why banks had not seen the success that either they or the insurance industry had expected, but I wanted to ask others in the business what they thought. I didn't want them to tell me what had gone wrong in the past-I'd spent plenty of time analyzing my own mistakes. I was much more interested in what people in the business could tell me about what we all needed to do to sell more insurance. I talked to more than 50 bank executives, bank-insurance leaders, producers, brokerage general agents and wholesalers about what they believed banks needed to be successful. What I heard was surprisingly consistent-and surprisingly simple-and it really came down to two things: banks need to build a solid foundation for their insurance business to succeed, and then the business needs to execute on a small number of fundamentals. I'm going to cover what I found out about building the foundation here. Leadership, alignment and people Leadership that both understands the realities of the economics of insurance distribution, and appreciates the unique culture that makes insurance organizations successful, is the cornerstone of the bank insurance foundation. With that understanding, leaders are able to build realistic and effective goals for the business and create an environment to hire the right people to achieve those goals. Virtually no business reaches its potential without effective leadership. But in this case the bank-insurance leaders I spoke to suggested that the senior bank executives to whom they reported needed to do a better job creating an environment that would allow the bank-insurance business to succeed. One roadblock to creating that environment for success was a lack of understanding of the economics of insurance distribution that led banks to set unreasonable, even unattainable goals. Where banks measure performance often in terms of return on equity or expense efficiency, insurance distribution rarely performs well on those two metrics. But where bank- INFO >>>>>>>>>>> Learn more at the only national event devoted exclusively to the issues and concerns of the bank-insurance industry. ABA Bank-Insurance Sales Conference Sept. 18-20, 2016 - Scottsdale, Ariz. Register at aba.com/abiaconference. aba.com/BankingJournal | ABA BANKING JOURNAL 51 http://www.aba.com/abiaconference http://www.aba.com/BankingJournal

Table of Contents for the Digital Edition of ABA Banking Journal - September/October 2016

PRESIDENT'S VIEW
UPFRONT
LEGAL BRIEFS
PICTURE THIS
COVER STORY
CECL FROM THE INSIDE: A CONVERSATION WITH FASB’S RUSSELL GOLDEN
WHERE ‘HABITS OF ECONOMY’ WERE SHAPED
HAT TIPS
CARD-LINKED REWARDS GIVE BANKS A COMPETITIVE EDGE
MARKETING
CYBERSECURITY
BANK-INSURANCE SALES
ABA COMPLIANCE CENTER INBOX
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS

ABA Banking Journal - September/October 2016

https://www.nxtbook.com/naylor/BAKS/BAKS0318
https://www.nxtbook.com/naylor/BAKS/BAKS0218
https://www.nxtbook.com/naylor/BAKS/BAKS0118
https://www.nxtbook.com/naylor/BAKS/BAKS0617
https://www.nxtbook.com/naylor/BAKS/BAKS0517
https://www.nxtbook.com/naylor/BAKS/BAKS0417
https://www.nxtbook.com/naylor/BAKS/BAKS0317
https://www.nxtbook.com/naylor/BAKS/BAKS0217
https://www.nxtbook.com/naylor/BAKS/BAKS0117
https://www.nxtbook.com/naylor/BAKS/BAKS0616
https://www.nxtbook.com/naylor/BAKS/BAKS0516
https://www.nxtbook.com/naylor/BAKS/BAKS0416
https://www.nxtbook.com/naylor/BAKS/BAKS0316
https://www.nxtbook.com/naylor/BAKS/BAKS0216
https://www.nxtbook.com/naylor/BAKS/BAKS0116
https://www.nxtbook.com/naylor/BAKS/BAKS0615
https://www.nxtbook.com/naylor/BAKS/BAKS0515
https://www.nxtbook.com/naylor/BAKS/BAKS0415
https://www.nxtbook.com/naylor/BAKS/BAKS0315
https://www.nxtbookmedia.com