Banks collected an estimated $78.1 billion from sales of insurance and annuities in 2003, up from $69.5 billion the year before.
However, the growth rate of bank insurance sales fell to its lowest point in 5 years, according to the American Bankers Insurance Association, Washington, which reported the data in its annual “Study of Leading Banks in Insurance.”
The growth rate for both insurance and annuity sales in banks was 12.4%, the lowest level in 5 years. In 2002, the growth rate was 26%, ABIA said.
The report attributed the slowdown mainly to an increase of just over 8% in annuity premiums sold by banks last year, well below a rise of almost 29% reported in 2002.
Even accounting for their slowed growth, annuity sales still accounted for an estimated $51.6 billion, or 66%, of total bank premiums in 2003.