外语教育网
您的位置:外语教育网 > 行业英语 > 金融英语 > 相关阅读 正文
  • 站内搜索:

Growing dominance of banks

2006-04-26 13:01

"Growing dominance of banks" in commercial insurance

  One can see the “growing dominance of banks” when it comes to the distribution of property and casualty (P&C) commercial insurance, observes John Wepler, president of MarshBerry (Concord, OH). Twenty-five of the top 100 U.S. insurance brokers (excluding Aon and Marsh McClennan) are now bank owned. And while this movement is likely to continue, bank executives have to be mindful of overall industry trends, he noted at the annual convention of the Bank Insurance & Securities Association (BISA) this week in Florida.

  This is a soft P&C insurance market. Premium growth rates have been lagging since 2002, with the notable exception of storm-ravaged coastal areas. Industry-wide, P&C premium growth has fallen in the last year from 3.6 percent to about 2 percent.

  “The premium tide is no longer rising,” says Wepler, and bank agencies are no longer looking at double-digit annual revenue growth, but more on the order of 6, 7, or 8 percent.

  Recently, public brokers replaced banks as the top acquirers of agencies. This is more from lack of supply than from lack of demand, notes Wepler. Brokers have raised their offers compared with past years (unlike back in 1999, say, when they figured banks were over-paying and would fail in the insurance area) and have been “lightning quick” in getting deals done, often in 20-30 days, a time frame that most banks—which tend to be more deliberative——have difficulty matching. The public brokers have “outrun banks,” says Wepler.

  There is more interest among banks in acquiring 'benefits' firms, which have generally higher profits margins than commercial lines insurance firms—31 percent versus 22 percent. And products like group health are generally less cyclical and often have good cross-selling potential compared with other insurance products. But, again, these firms are not always easy to find in the current market.

  Therefore banks will need to concentrate more on organic growth, in particular integrating insurance with other parts of the institution, suggests Wepler.

  The integration process will be long-term, requiring some five to ten years. Banks will need to be patient, much as they were with annuities. But insurance is a product that every commercial client has to have, and eventually “banks will dominate the commercial insurance distribution system,” says Wepler.

相关热词:行业 英语
行业英语辅导课程
李 健协和医科大学医学博士,美国国立卫生研究院博士后……详情>>
李健:医学英语网上辅导名师
高 云澳大利亚注册会计师协会会员,会计专业硕士……详情>>
高云:财会英语网上辅导名师
李文沛中国政法大学博士,师从著名法学家周忠海教授……详情>>
李文沛:法律英语网上辅导名师

  1、凡本网注明 “来源:外语教育网”的所有作品,版权均属外语教育网所有,未经本网授权不得转载、链接、转贴或以其他方式使用;已经本网授权的,应在授权范围内使用,且必须注明“来源:外语教育网”。违反上述声明者,本网将追究其法律责任。
  2、本网部分资料为网上搜集转载,均尽力标明作者和出处。对于本网刊载作品涉及版权等问题的,请作者与本网站联系,本网站核实确认后会尽快予以处理。本网转载之作品,并不意味着认同该作品的观点或真实性。如其他媒体、网站或个人转载使用,请与著作权人联系,并自负法律责任。
  3、联系方式
  编辑信箱:for68@chinaacc.com
  电话:010-82319999-2371