Agents Can Strike Gold By Selling Worksite Benefits Through Banks
Bank insurance programs currently are experiencing high activity due to banks need to find new ways to increase their revenues. From this highly charged environment, the next segment of the bank insurance market to emerge will be the small business and commercial customer. This customer provides banks a unique way to combine an entire array of property and casualty products and services with those from the life side to fashion a single enterprise solution.
There are about 25 million small businesses in the United States, representing 99% of all employers. They employ over 53% of the private work force, totaling over $1 trillion in payroll. These firms typically have 10 to 50 employees, are privately held or family owned, and represent up to $25 million in sales each.
The key point to remember is that while many of these firms do not have an insurance agent, all of them use a bank. What a prospecting gold mine for a broker or insurer working through banks.
A bank insurance agency can offer a single solution to the owners and employees of these 25 million small businesses via 3 different sales initiatives.
First, by using employee benefit programs (group and voluntary), an employer owner could customize a suite of products aimed at many of their noninsured and underinsured employees.
Second, the owner could offer benefit programs aimed at key personnel, boards of directors and, most importantly, themselves.
Third, these programs could be made more alluring by being tied to convenient bank products such as savings accounts, checking accounts and payroll deduction services.
Unlike one-on-one sales by platform salespeople to the banks customers, these small business-commercial sales present several challenges.
The first challenge is selling the new business development officer, bank branch manager or upscale bank personnel on the benefits of offering an insurance program to their customers.
The second challenge is convincing employer owners of businesses to buy into the program.