Anyone Ever Worked With Banks To Offer Your Products?

[jenjenstar]

I always seem to come across a prospect that will pull out an insurance offer they can get throught "their bank".

I'm pretty sure 1 of 2 things:
1. An Insurance company (just like mine) has some kind of exclusive deal that they will offer "information" on insurance products through their bank

2. Direct mail lists bought with names of bank/credit union members.


Anyone ever used either technique? I work in final expense

 

[BNTRS]

A lot of banks have different deals set up. Mostly for term insurance, but some have a final expense like plan. Some small banks and credit unions will work with an agent for financial person who is local.

The big names all have either an insurance wing, or an agreement with some company. Their "financial advisors" are supposed to look for insurance opportunities as well. They don't do a very good job. But they don't have to since a lot of them play heavily on the "we're you bank" card. To some people, especially older people, that means a lot.

 

[somarco]

Banks, credit card companies, etc cut deals direct with carriers or large agencies. Years ago we had a couple of agencies in Atlanta that came up with the idea of promoting life insurance and AD&D coverage by including stuffers in bank mailings.

They made a fortune.

Then the banks discovered they could go direct to carriers and cut out the agent.

I knew a guy years ago out of Nashville that put together an AD&D plan he sold to banks to market to their clients. Get a checking or savings account and get a free $2000 AD&D policy. You had the option of buying more but the bank gave you $2000 at no charge.

I tried to take the AD&D away from Fireman's Fund and put it with Maccabees (a carrier I represented at the time). This was at least 20 yrs ago. They were paying FF $3 million a year in net AD&D premiums at $0.02 per thousand per month. The agent grossed up the rate to $0.029, the bank grossed it up again to the clients and everyone was quite happy.

I tried for years to get the account and was never successful.

If you want to work with a bank you probably need to work for them. A buddy did that years ago and has done reasonably well. He is their bitch, but they pay him well and he never has to prospect.

 

[Larry Tew]

You might have an easier time getting something started with a small community bank, especially if you want to maintain any ownership or control.

 

[Dave020]

Funny story (kind of on topic) from years ago.

I was standing in line at then WAMU to make a deposit and of course the line was long and sloooooooow.

So I am listening to this "kid" selling an annuity to a senior. They get done with all of the paperwork and the kid mentions that there is a free-look period on the annuity.

Now, had he stopped there, he might have been alright. Nope, he must have mentioned the free-look feature about a dozen times in just a minute or two. I could see the senior was starting to get very uncomfortable about the annuity decision because this kid would not shut up about the free look period.

I always wondered if the senior ended up keeping the annuity or taking a pass.

 

[scagnt83]

I am currently in negotiations on a partnership with a local bank.

A friend of mine has one with another bank, and it has worked very well for him over the years.

I would be providing enhanced financial services to select clientel of the bank.
Basically annuities as CD alternatives (or using the enhanced interest rates to capture CD money walking out the door), non-med term to borrowers they are financing, financial planning/estate planning for high net worth clients, and financial planning for their business clientel.
It would be great if it works out.... we will see..
But it has been a long hard process to get here (year and a half of talks so far), and it certainly isnt a sure thing yet..


The key is to find local banks that are depository based. They like the idea of focusing on what a bank is supposed to do, and have true experts servicing their clients insurance and advanced financial needs.

I think that more and more local banks will steer clear of having their own financial services department with all the new regulations/etc. Outsourcing this service will look more and more attractive imo...

 

[jenjenstar]

Great feedback so far my insurance experts. I live in a small area with about 2-3 credit unions I'd love to target. The real question from them will be:

"what's in it for us"
"with the financial meltdown, why should we feel you guys are any different?"

everyone's so skeptical about tagging their "name" with anyone they are un familiar with. I'm thinking I want to present it as strickly a Final Expense/Burial coverage.

Any Joe-Shmoe will want to sell LIFE INSURANCE but they an now have the opprtunity to offer, "BURIAL INSURANCE"

I like the "If you open a checking/savings acct w/ ABC credit union, you can..."

IDEAS FOR THE BLANKS?
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I am currently in negotiations on a partnership with a local bank.

A friend of mine has one with another bank, and it has worked very well for him over the years.

I would be providing enhanced financial services to select clientel of the bank.
Basically annuities as CD alternatives (or using the enhanced interest rates to capture CD money walking out the door), non-med term to borrowers they are financing, financial planning/estate planning for high net worth clients, and financial planning for their business clientel.
It would be great if it works out.... we will see..
But it has been a long hard process to get here (year and a half of talks so far), and it certainly isnt a sure thing yet..


The key is to find local banks that are depository based. They like the idea of focusing on what a bank is supposed to do, and have true experts servicing their clients insurance and advanced financial needs.

I think that more and more local banks will steer clear of having their own financial services department with all the new regulations/etc. Outsourcing this service will look more and more attractive imo...

THAT IS GREAT! CONGRATS! LOOKS LIKE TIME & PATIENCE PAID OFF. What was your foot in the door baseline?
"why should we use you?" what was your answer?

 

[scagnt83]

The real question from them will be:

"what's in it for us"
"with the financial meltdown, why should we feel you guys are any different?"

Commission splits... what else. An employee gets licensed and then the bank can split business with you. You give them 30%-40% and you get a slam dunk.

Some B/Ds will give you the ability to "partner" with the bank and the bank does not have to have a licensed employee..

Your problem with FE will be to generate enough revenue for them to justify their time dealing with you.

With annuities, not only are you adding a good deal to their bottom line, but you are also able to retain clients who are leaving for higher CD rates.
So the value added by having an annuity partnership is much more than FE would be.

If you cant deliver an additional $100K/year to them (minimum) then they will most likely consider it a waste of their time.

The president of a bank (who you will initially have to convince) will know that "Burial Insurance" is nothing more than "Life Insurance".
The term "burial insurance" is nothing new, and any half decent president of a financial institution knows this.

 

[jenjenstar]

Commission splits... what else. An employee gets licensed and then the bank can split business with you. You give them 30%-40% and you get a slam dunk.

Some B/Ds will give you the ability to "partner" with the bank and the bank does not have to have a licensed employee..

Your problem with FE will be to generate enough revenue for them to justify their time dealing with you.

With annuities, not only are you adding a good deal to their bottom line, but you are also able to retain clients who are leaving for higher CD rates.
So the value added by having an annuity partnership is much more than FE would be.

If you cant deliver an additional $100K/year to them (minimum) then they will most likely consider it a waste of their time.

The president of a bank (who you will initially have to convince) will know that "Burial Insurance" is nothing more than "Life Insurance".
The term "burial insurance" is nothing new, and any half decent president of a financial institution knows this.

You're right regarding the annuity return although I only specialize in Final Expense. I figure that Final Expense would be a comfortable way to start seeing that the coverage amounts are low (for 95% of my clients under $10k) which makes it affordable. It is easy to obtain (no physcial required) & it mainly caters to the senior clients.
This could be a great way to open the doors for seniors (who mainly all recieve their Social Security directly deposited) to want to bank with them.

Thats kinda what I've got to throw around but you're right. I need more incentive. How could I better do it on a partner-level? I dnt think my little local credit union would have enough members for me to sit a desk & wait for people to want to see me about their burial insurance needs ya know.

Any thoughts?

 

[bluemarlin08]

Been down this road several times, and wasted a lot of time. The last time was a few years ago, we did such a good job at the last meeting they decided to open their own insurance company, it didn't work out so good for them. Funny thing happened at our first meeting, invited two officers to my office for lunch. My office is in a guest house behind my parents historic 200 year old home, beautiful setting. We ste down to eat, poured the tea that was in a milk jug in the fridge. As the meal started one of them asked if we always serve wine at lunch. My partner thought the jug was tea but was homemade wine. We all had a good laugh.