Insurance sold by banks on the rise

Northwestern Financial Review, Nov 1-Nov 14, 2003

Insurance premiums generated from insurance sold by banks increased 26 percent to an estimated $69.5 billion in 2002, according to a study of 406 financial institutions conducted by the American Bankers Association. Sales of commercial lines grew 29.5 percent and have grown at a five-year compounded annual rate of 32.7 percent.

Premiums for annuities sales grew by 28.6 percent and continue to account for more than two-thirds of bank insurance premiums. Personal property and casualty sales by banks grew 22.4 percent. Acquired insurance agencies were identified as the primary distribution platform for banks in all general insurance lines.