Banks looking to improve their performance regarding life insurance sales may take heed of a recent report from LIMRA and one of its subsidiaries.
The 2009/2010 Bank Life Insurance Study indicated banks that have life insurance-specific sales goals see these products perform better rather than similar financial institutions that only concentrate on overall expectations for investment offers.
Of the banks examined, 60 percent had goals tied specifically to life insurance. These institutions saw almost 25 percent more "revenue penetration," according to LIMRA's report.
"It's amazing how often the most basic business practices have the highest impact," said LIMRA representative Patrick Leary.
The study also showed that having specific goals for sales representatives regarding life insurance products further improves performance for banks. Productivity for consultants with set financial expectations was 68 percent higher, while platform representatives witnessed results that were 63 percent better.
Many banks and financial institutions are trying to find ways to improve their financial standing after the government put forward reforms. The Wall Street Reform and Consumer Protection Act created a new watchdog to oversee certain products offered to consumers.