Exploring the Gap Between FIIS Managers and Millennials — Service
ABIA Bank Insurance Connection | June 2015
I recently returned from visiting Barcelona, a city dedicated to tourists, great tapas and catering to an international clientele. In previous Intersections we have discussed the primary research we conducted on recruiting, training, retaining and growing the FIIS business and how Millennials (Gen Y) fit into our Industry and the work place. We were looking for practical insights that FIIS managers are using to close the intergenerational gaps between Baby Boomer (BB) GenX, Silent Generation (SG) and Millennials. For those of you that want our usual hard facts and data based on extensive research, stop reading right here. This is a purely anecdotal; however it has applicability to our Industry, promise.
Back to Barcelona. After only a couple of days in this beautiful city, we knew we had entered into a world where every question was answered with a “yes, of course and….” except for our first encounter upon entering the hotel.
We arrived at 7 am and our room would not be available until 3 Pm technically. We knew this and had decided to spend the first day simply walking around the city; however we wanted a place to change and freshen up before starting out. The first person to greet us was a 20-something (Gen Y) hotel check-in clerk. Her attitude was abrupt, and since one of us spoke fairly fluent Spanish, the language was not a barrier. I should also mention that this is a highly regarded hotel. She brusquely said, “Put your luggage there, here is a map and as this is Sunday morning, most restaurants are not really open yet”. Wow, talk about jetlag. We felt a bit disconcerted and seeing our expression an older women (BB) rushed over from the concierge section of the check -in counter.
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I recently returned from visiting Barcelona, a city dedicated to tourists, great tapas and catering to an international clientele. In previous Intersections we have discussed the primary research we conducted on recruiting, training, retaining and growing the FIIS business and how Millennials (Gen Y) fit into our Industry and the work place. We were looking for practical insights that FIIS managers are using to close the intergenerational gaps between Baby Boomer (BB) GenX, Silent Generation (SG) and Millennials. For those of you that want our usual hard facts and data based on extensive research, stop reading right here. This is a purely anecdotal; however it has applicability to our Industry, promise.
Back to Barcelona. After only a couple of days in this beautiful city, we knew we had entered into a world where every question was answered with a “yes, of course and….” except for our first encounter upon entering the hotel.
We arrived at 7 am and our room would not be available until 3 Pm technically. We knew this and had decided to spend the first day simply walking around the city; however we wanted a place to change and freshen up before starting out. The first person to greet us was a 20-something (Gen Y) hotel check-in clerk. Her attitude was abrupt, and since one of us spoke fairly fluent Spanish, the language was not a barrier. I should also mention that this is a highly regarded hotel. She brusquely said, “Put your luggage there, here is a map and as this is Sunday morning, most restaurants are not really open yet”. Wow, talk about jetlag. We felt a bit disconcerted and seeing our expression an older women (BB) rushed over from the concierge section of the check -in counter.
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Exploring the Gap Between FIIS Managers and Millennials — Growth
“I define myself by what I do after work as well as my work. When my company supports both my personal goals as well as my professional goals then they know me in a more holistic way and I feel connected to the company.” Millennial’s words when asked their views of growth goals.
Our recently completed primary research on growing, recruiting and training in the Financial Institution Insurance and Investment Services (FIIS) business and how Millennials (GenY) fit into this workplace; has been eye-opening. We wanted some practical insights into the strategies FIIS managers are using to close the intergenerational gaps between Baby Boomers (BB), Gen X, Silent Generation (SG) and Millennials.
In this segment of research, we asked Millennials to indicate what makes them want to support the growth goals of the company and what elements moved them to work harder. We spoke with sales representatives as well as advisors, operations and administration people.Remember that this is the generation that invented the selfie, so the managers that work well with Millennials find ways to celebrate the individual and do it in conjunction with the Company’s growth objectives.
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Our recently completed primary research on growing, recruiting and training in the Financial Institution Insurance and Investment Services (FIIS) business and how Millennials (GenY) fit into this workplace; has been eye-opening. We wanted some practical insights into the strategies FIIS managers are using to close the intergenerational gaps between Baby Boomers (BB), Gen X, Silent Generation (SG) and Millennials.
In this segment of research, we asked Millennials to indicate what makes them want to support the growth goals of the company and what elements moved them to work harder. We spoke with sales representatives as well as advisors, operations and administration people.Remember that this is the generation that invented the selfie, so the managers that work well with Millennials find ways to celebrate the individual and do it in conjunction with the Company’s growth objectives.
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How do GenXYs Think About Wealth Management At Banks and How Does That Differ from Bankers?
ABIA Bank-Insurance Connection | November 2013
That is the theme explored by industry consultant C F Effron Company and Simon Associates using ethnographic research techniques with both consumers and banking executives. What do today’s consumers really want from their financial institution? More technology? More mobile apps? More integrated asset management? What do bankers think they want?
We know that the GenXY consumers are beginning to accrue wealth, either inheriting it from their parents or grandparents, or building their own portfolios. And with today’s new technology channels, these generations that have grown up digital will certainly leverage technology to help with the crucial financial decisions now facing them. This generation is important to bankers as LIMRA estimates that GenXY assets will grow from $6.4 trillion in 2010 to over $18.3 trillion by 2020; a 186% growth and predicted to be larger than baby boomers assets by close to $7 trillion!
The research found that consumers don’t necessarily want high tech solutions in isolation; just as important, they want support, advice, and more knowledgeable people speaking to them than they currently experience in their banking interactions.
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We know that the GenXY consumers are beginning to accrue wealth, either inheriting it from their parents or grandparents, or building their own portfolios. And with today’s new technology channels, these generations that have grown up digital will certainly leverage technology to help with the crucial financial decisions now facing them. This generation is important to bankers as LIMRA estimates that GenXY assets will grow from $6.4 trillion in 2010 to over $18.3 trillion by 2020; a 186% growth and predicted to be larger than baby boomers assets by close to $7 trillion!
The research found that consumers don’t necessarily want high tech solutions in isolation; just as important, they want support, advice, and more knowledgeable people speaking to them than they currently experience in their banking interactions.
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Marketing to the Gen Xers and Gen Yers
Bank Insurance & Securities Marketing Magazine | June 2013
A lot has been assumed about Generations X and Y. They are said to be tech savvy, app hungry—and under no circumstances can they be lured into a bank branch. But is this view too limited?
A recent study, which surveyed both consumers and bankers, suggests it is. That study found that younger consumers “did not necessarily want high-tech solutions in isolation, but as importantly, want support, advice, and more knowledgeable people speaking to them than they currently experience in their banking interactions.”
The research, “Want to Know How Gen XYs Think about Banks and How that Differs from Bankers?” by industry consultant Carmen Effron, observes that “bankers within wealth management divisions often assume that the ‘high tech’ without the ‘touch’ will work. We feel this is a dangerous path to follow based on the research we recently finished.”
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A recent study, which surveyed both consumers and bankers, suggests it is. That study found that younger consumers “did not necessarily want high-tech solutions in isolation, but as importantly, want support, advice, and more knowledgeable people speaking to them than they currently experience in their banking interactions.”
The research, “Want to Know How Gen XYs Think about Banks and How that Differs from Bankers?” by industry consultant Carmen Effron, observes that “bankers within wealth management divisions often assume that the ‘high tech’ without the ‘touch’ will work. We feel this is a dangerous path to follow based on the research we recently finished.”
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The Battle for the Wealth Management Assets of Tomorrow
Wealth Management | Winter 2013
TRADITIONAL full-service brokerages now hold the majority of wealth management-oriented investable assets. Banks have already lost that battle. That is where the puck is today. But the real question is: Where is the puck going to be tomorrow?
A variety of research shows that the more investable assets an individual accumulates, the less likely that individual is to keep those assets in a bank, and the more likely that individual is to consolidate those assets with a classic brokerage or wirehouse-type organization.
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A variety of research shows that the more investable assets an individual accumulates, the less likely that individual is to keep those assets in a bank, and the more likely that individual is to consolidate those assets with a classic brokerage or wirehouse-type organization.
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SaveDaily, Inc. Announces Addition of Carmen Effron Industry Veteran to Advisory Board
PRNewswire | May 14, 2012
SaveDaily, Inc. (OTCBB: SAVY), the leading provider of low cost mutual fund investing platforms used by financial institutions, announced today that Carmen Effron, founder and President of C F Effron Company LLC, will serve on the SaveDaily, Inc. advisory board.
C F Effron Company LLC provides strategy and management consulting to numerous banks and credit unions, insurers and reinsurers around the globe. For the past 13 years the firm's focus has been to provide thought leadership, strategy and tangible results to over 100 companies. Effron Company's accomplishments include end-to-end design and deployment of new products and processes that have garnered international recognition.
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C F Effron Company LLC provides strategy and management consulting to numerous banks and credit unions, insurers and reinsurers around the globe. For the past 13 years the firm's focus has been to provide thought leadership, strategy and tangible results to over 100 companies. Effron Company's accomplishments include end-to-end design and deployment of new products and processes that have garnered international recognition.
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Books Closed More Quickly at Stronger Insurers: Report
Wall Street Journal | December 12, 2012
Stronger performing insurance companies close their books faster and work fewer days, according to a study of 100 insurance industry CFOs by accounting firm WeiserMazars.
Two-thirds of insurers that returned more than 10% on capital over a rolling 3-year period were able to close their books in just 15 days, while only a third of companies with a return on capital lower than 10% reported closing their books at the same pace, according to the study, which included 50 CFOs at companies with over $1 billion in revenue.
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Two-thirds of insurers that returned more than 10% on capital over a rolling 3-year period were able to close their books in just 15 days, while only a third of companies with a return on capital lower than 10% reported closing their books at the same pace, according to the study, which included 50 CFOs at companies with over $1 billion in revenue.
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WeiserMazars 2012 Finance Leadership Study
Big4.com | December 17, 2012
Michael Flagiello, Partner in the Financial Services Consulting Group for WeiserMazars, has an undeniable enthusiasm for his work that was readily apparent when we sat down to talk to him last week about the findings from the WeiserMazars 2012 Insurance Finance Leadership Study. The study found that 66% of high-performing insurance companies (those with Return on Capital higher than 10%) close their books in less than 15 days while only 33% of low performers (those with ROC lower than 10%) met that timeline and that a synergy between the IT and finance departments was a critical factor.
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A Ray of Light for Banks: Record Insurance SalesA
American Banker | August 9, 2011
Insurance continued to be a bright spot for banks in the first quarter, as guarantees lured customers and banks ramped up their sales efforts.
Insurance brokerage income at bank holding companies was $3.98 billion, up 19.8% from $3.32 billion in first quarter of 2010, according to the Michael White-Prudential Bank Insurance Fee Income Report. That quarter and the one before it have produced the highest totals ever recorded for holding companies' insurance brokerage fee income, according to the report.
Income grew strongly on a quarter-to-quarter basis as well. First-quarter 2011 income was 10.6% greater than fourth-quarter 2010 income, according to the report.
"I think it's the same thing we've seen since the whole financial crash started, which is the flight to guarantees," said Carmen Effron, president at CF Effron Co., a bank insurance consulting firm.
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Insurance brokerage income at bank holding companies was $3.98 billion, up 19.8% from $3.32 billion in first quarter of 2010, according to the Michael White-Prudential Bank Insurance Fee Income Report. That quarter and the one before it have produced the highest totals ever recorded for holding companies' insurance brokerage fee income, according to the report.
Income grew strongly on a quarter-to-quarter basis as well. First-quarter 2011 income was 10.6% greater than fourth-quarter 2010 income, according to the report.
"I think it's the same thing we've seen since the whole financial crash started, which is the flight to guarantees," said Carmen Effron, president at CF Effron Co., a bank insurance consulting firm.
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Bank Insurance Consultant, Carmen Effron
SNL | July 22, 2011
Insurance gets no respect, that is, within the banking system.
"Having run bank insurance programs here and in Europe, I can say that insurance does not get the kind of attention it needs and deserves because usually it is not big enough in terms of bank's overall revenue stream," said Carmen Effron, a bank insurance consultant and president of C F Effron Co. LLC.
In recent years, Effron, who was formerly president of BankBoston Insurance Agency and president of NatWest Bank's U.S. domestic insurance operations prior to their acquisition, has been helping financial institutions assess bank insurance opportunities and remove distribution channel roadblocks through sales process redesign.
In an exclusive interview with SNL, Effron discusses the challenges of distributing insurance through banks and what she believes is important to running a successful bank insurance program.
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"Having run bank insurance programs here and in Europe, I can say that insurance does not get the kind of attention it needs and deserves because usually it is not big enough in terms of bank's overall revenue stream," said Carmen Effron, a bank insurance consultant and president of C F Effron Co. LLC.
In recent years, Effron, who was formerly president of BankBoston Insurance Agency and president of NatWest Bank's U.S. domestic insurance operations prior to their acquisition, has been helping financial institutions assess bank insurance opportunities and remove distribution channel roadblocks through sales process redesign.
In an exclusive interview with SNL, Effron discusses the challenges of distributing insurance through banks and what she believes is important to running a successful bank insurance program.
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Effron Company Releases Innovative Research Aimed at Bridging the Cultural Divide Between Financial Institutions and Insurers™
Google Finance | April 25, 2011
"The Effron Company, a leading consulting firm specializing in financial institution insurance, has announced the release of its latest innovative research. Entitled "The 2011 Bridging the Cultural Divide Study," this is the fourth in a continuing investigation of the elements that are creating barriers to success for financial institutions in offering insurance products, while highlighting recommendations to support the growth of a vibrant financial institution insurance market. The study, performed in cooperation with the Bank Insurance and Securities Association (BISA), was sponsored by Affinion Group, HSBC, VantisLife, Lincoln Financial Group and Prudential.
The Study sent essentially the same robust questionnaire to hundreds of banks, credit unions, insurers and managing general agents (MGAs). Nearly 150 institutions were included in the final research, including: 1/3rd of the top 25 financial institutions; more than half of the life insurers in the financial institution marketplace; and 32 MGAs that support the intersection of financial institution, insurance and investments."
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The Study sent essentially the same robust questionnaire to hundreds of banks, credit unions, insurers and managing general agents (MGAs). Nearly 150 institutions were included in the final research, including: 1/3rd of the top 25 financial institutions; more than half of the life insurers in the financial institution marketplace; and 32 MGAs that support the intersection of financial institution, insurance and investments."
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Lack of Training Impacting Bancassurance Sales
riskinfo.com.au | August 5, 2010
"Gaps in the availability and effectiveness of bank salesperson training is contributing to reduced levels of life insurance business being written through Australia’s major banks, says a recent study.
According to RGA Reinsurance Australia’s 2010 Australia Bancassurance Study, bancassurance in Australia is well-entrenched, but is subject to what the study refers to as ’significant growth challenges.’
The study also identifies a gap in the availability and effectiveness of client data mining technology which, when combined with the lack of sales training, have an impact on prospecting of sales leads and the actual selling of life insurance business.
According to the study’s authors, specialist bancassurance consulting firm, C F Effron, the impact on bank customers of this gap in training and technology translates into a lack of awareness: ”Bank customers are still less aware than expected that they can buy life insurance through their banks."
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According to RGA Reinsurance Australia’s 2010 Australia Bancassurance Study, bancassurance in Australia is well-entrenched, but is subject to what the study refers to as ’significant growth challenges.’
The study also identifies a gap in the availability and effectiveness of client data mining technology which, when combined with the lack of sales training, have an impact on prospecting of sales leads and the actual selling of life insurance business.
According to the study’s authors, specialist bancassurance consulting firm, C F Effron, the impact on bank customers of this gap in training and technology translates into a lack of awareness: ”Bank customers are still less aware than expected that they can buy life insurance through their banks."
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Bancassurance in South Africa is expanding—yet significant cultural gaps remain between banks and life insurers
FAnews South Africa | May 2010
"Banks and life insurers in South Africa agree that bank customers are more aware of bancassurance today than they were three years ago, yet significant challenges remain as the two industries work together to sell insurance through banking channels, according to the 2010 South Africa Bancassurance and Credit Life Study “Bridging the Cultural Divide Between Banks and Life Insurers.™
The study, sponsored by RGA Reinsurance Company of South Africa (RGA South Africa), was conducted by C F Effron Company, LLC, in the first quarter of 2010. It compared and contrasted the opinions of 18 banks and life insurers regarding various aspects of bancassurance. A similar bancassurance study in South Africa was sponsored by RGA in 2007."
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The study, sponsored by RGA Reinsurance Company of South Africa (RGA South Africa), was conducted by C F Effron Company, LLC, in the first quarter of 2010. It compared and contrasted the opinions of 18 banks and life insurers regarding various aspects of bancassurance. A similar bancassurance study in South Africa was sponsored by RGA in 2007."
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Are insurers and bankers on the same page?
FAnews South Africa | April 2010
"The report is compiled by an independent US-based bank insurance consultancy firm, C F Effron Company LLC. Company president Carmen Effron was on hand to discuss the findings after a survey of South African companies, including 13 insurers and five affiliated banks. An identical questionnaire was sent to participating banks and insurers in which they were asked to respond to a range of statements using the familiar 1 to 5 scale. The average response from banks is then subtracted from that of insurers to reveal a ‘gap’ which indicates how far apart bank and insurance thinking is. A ‘gap’ of more than 1.0 points indicates a significant culture divergence. The overarching objective of the research is to answer the question: How do we make banks and insurers work more effectively together? “They’re two very different businesses – they do things in different ways – but they do have a common purpose,” says Effron."
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White House Policy May Lift Banks' Annuity Sales
American Banker | Jan 27, 2010
Analysts applauded the initiative and said it could significantly increase annuity assets this year and beyond. Carmen Effron of C F Effron Co. LLC in Weston, Conn., called it a "stamp of approval" for the annuity industry.
"Any time you get the government behind a program, it is an enormous boost for business," she said. "Think about what happened with IRAs and HSAs when the government supported them. Any time the government takes an interest in a financial product, there is an influx of information and publicity. People are going to be talking annuities, and this creates a tremendous opportunities for individual annuity carriers."
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"Any time you get the government behind a program, it is an enormous boost for business," she said. "Think about what happened with IRAs and HSAs when the government supported them. Any time the government takes an interest in a financial product, there is an influx of information and publicity. People are going to be talking annuities, and this creates a tremendous opportunities for individual annuity carriers."
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Bank Insurance Marketing to the Middle Market Consumer
The Official Society of Actuaries e-newsletter of the Marketing and Distribution Council | January 2010
By Carmen F. Effron
By Carmen F. Effron
"Forget what you hear about the banks' eminent demise, there are still over 8,100 banks doing business in the United States. To be fair, the top 10 have 50 percent of all the assets and the top three have 33 percent of the assets; however all of the banks regardless of size are dealing with the middle market consumer every day. Are the largest banks in the country distributing insurance to the middle market; the answer is yes.
From the banks' perspective the middle market consumer can be anyone where annual household (HH) income is above $35,000 and up to $150,000. LIMRA uses HH annual income from $35,000 to $99,999 and ages 25 to 64 as the middle market and estimates 41 million U.S. HH fall into this category. President Obama's definition concentrates on defining the highest level of annual income for the middle market as $250,000. In a recent nationalpayrollweek.com survey of close to 40,000 adults, 57 percent said that this top income level is too high and should be lower, while 32 percent of the people surveyed agreed with the Obama standard. Obviously, there is no set classification of the middle market consumer, so for this article we will use the LIMRA definition of middle market."
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From the banks' perspective the middle market consumer can be anyone where annual household (HH) income is above $35,000 and up to $150,000. LIMRA uses HH annual income from $35,000 to $99,999 and ages 25 to 64 as the middle market and estimates 41 million U.S. HH fall into this category. President Obama's definition concentrates on defining the highest level of annual income for the middle market as $250,000. In a recent nationalpayrollweek.com survey of close to 40,000 adults, 57 percent said that this top income level is too high and should be lower, while 32 percent of the people surveyed agreed with the Obama standard. Obviously, there is no set classification of the middle market consumer, so for this article we will use the LIMRA definition of middle market."
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