Bank Insurance Sales Up But Slowing

Other products experienced far more growth. Commercial lines premiums grew 24% to $14.2 billion, personal property and casualty premiums grew 27% to $6.3 billion and individual life-health premiums grew 29% to $3.6 billion.

The previous year, individual life-health premiums in banks grew by around 22%.

Participation in insurance sales is increasing the most among banks with more than $1 billion in assets.

Of the surveyed banks, 86% of midsized banks, those with between $1 billion and $10 billion in assets, are involved in insurance sales, nearly equaling the 86.4% participation rate of larger banks. Of banks with less than $1 billion in assets, only 26% were distributing insurance products in 2003.

The acquisition of agencies continued to be a driving force behind the growth of banks in insurance, according to the study. Of the 391 banks surveyed, 49 reported at least one agency acquisition. Of those, 89% said that they plan additional acquisitions.