This Study explores the cultural and perceptual issues that divide banks and insurers. The 2005 Study is the second of a continuing investigation of the concerns confronting banks and their insurance partners. In 2003, the C F Effron Company, LLC under the auspices of the Financial Institutions Insurance Distribution Committee of the American Council of Life Insurers (ACLI) conducted a ground breaking study to quantify the issues that were creating barriers to success and to understand the non statutory disincentives to affiliation. These disincentives are rooted in the cultural differences between banks and life insurers—their distinctive business models, as well as how these institutions are regulated, attract customers, distribute their products, and make a profit; in essence their culture. The Study uses a statistical “gap analysis” technique to quantify the cultural issues; therefore using hard evidence to uncover and explore the qualitative issues banks and insurers must tackle to achieve success.
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