Ninety-six percent of banks currently distributing insuranceproducts believe that their insurance businesses add value for bankshareholders, with nearly 40 percent saying it adds "significant"value, according to a survey.
|The findings were made in the "2008 Study of Banks in Insurance"produced by the Washington-based Bankers Insurance Association incooperation with Reagan Consulting.
|Valerie Barton, executive director of ABIA said, "With thecredit crisis front and center, it pays to have diversified intosome non-interest income businesses. Well developed fee incomesources can lead to higher valuations for banks."
|ABIA said the study is based on a collection of annual researchabout the current and planned insurance activities of U.S. banks.It is designed as a management tool for executives who want tounderstand how the bank-insurance industry is developing, whatstrategies banks are pursuing, and what practices or approaches areproducing successful bank-insurance programs.
|The report, said ABIA, also provides a general review of theoverall insurance distribution system and the current marketpositions of the banking industry. This includes market shareanalysis, competitive advantages/disadvantages for banks, emergingtrends that will impact the insurance distribution landscape and abank-insurance update.
|The order form for the study, which costs $100 for ABIA membersand $275 for non members, can be found athttps://www.aba.com/aba/mem/2008_ABIA_Study_orderform.htm.
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