Sales growth fuels individual advisors’ practices and large organizations’ success. Banks are experiencing growth right now in life insurance sales. For the second consecutive year, the typical bank increased new life sales revenue by nearly 15 percent. Banks also saw an average profit margin of 42 percent on life insurance sales programs. Both of those numbers are according to the Kehrer-LIMRA Bank Life Insurance Sales Study.
The study found that while profit margins are favorable in bank sales programs, customer penetration remains low. That may be due to the low number of distribution channels utilized by banks. Fifty-three percent of banks use only one distribution method for life insurance sales programs, and only 27 percent use more than two methods.
As banks rely on part-time salespeople – financial consultants, agents and advisors – they are finding that agents who focus on estate planning and business succession bring in the greatest revenue, generating approximately $345,000 in first-year life commission per agent.
To find out more about the seventh annual study, visit www.limra.com.