Ninety-six percent of banks currently distributing insurance products believe that their insurance businesses add value for bank shareholders, with nearly 40 percent saying it adds "significant" value, according to a survey.

The findings were made in the "2008 Study of Banks in Insurance" produced by the Washington-based Bankers Insurance Association in cooperation with Reagan Consulting.

Valerie Barton, executive director of ABIA said, "With the credit crisis front and center, it pays to have diversified into some non-interest income businesses. Well developed fee income sources can lead to higher valuations for banks."

ABIA said the study is based on a collection of annual research about the current and planned insurance activities of U.S. banks. It is designed as a management tool for executives who want to understand how the bank-insurance industry is developing, what strategies banks are pursuing, and what practices or approaches are producing successful bank-insurance programs.

The report, said ABIA, also provides a general review of the overall insurance distribution system and the current market positions of the banking industry. This includes market share analysis, competitive advantages/disadvantages for banks, emerging trends that will impact the insurance distribution landscape and a bank-insurance update.

The order form for the study, which costs $100 for ABIA members and $275 for non members, can be found at https://www.aba.com/aba/mem/2008_ABIA_Study_orderform.htm.

Special Reports /

Banks Say Insurance Business Adds To Their Share Value

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