Banks Have an Opportunity to Increase Life Insurance Sales,
LIMRA Reports
Windsor, CT June 11, 2002 -- Banks can capture a
larger share of the life insurance market, particularly among
emerging-affluent customers. But first they need to show consumers
that banks can meet their insurance needs, according to the results
of a consumer survey by LIMRA International.
The survey showed that only about half of consumers are even aware
that they can buy life insurance through a bank. And of those who
are aware, about 4 in 10 would consider such a purchase if they had
the need.
"This means that about one quarter of the population understands
that they can buy insurance through a bank, and are also receptive
to the idea," said Greg Grzywacz, an analyst in LIMRA's distribution
research group. "The household income group showing the highest
level of awareness is the $75,000-$99,000 range. They may be quite
receptive to marketing efforts by banks." The next highest level of
receptivity is among households with income under $25,000, Grzywacz
said, while the affluent, with income above $100,000, are least
receptive.
Price is a primary consideration for consumers buying life insurance
from a bank. Over 60 percent of consumers said lower cost would be
the best incentive for such a purchase. Another 22 percent would be
motivated by discounts or incentives on other banking products.
Banks should also emphasize that their staff has the professional
qualifications needed to sell life insurance, the LIMRA report
notes.
"Raising awareness among these receptive markets could be one of the
most effective steps banks can take to improve life insurance sales,
since only about half of consumers even know they have this option,"
Grzywacz said. "And by emphasizing added value in their marketing
efforts, such as discounts on services, electronic premium payments,
and other incentives, banks can effectively increase their share of
these markets."
