This Study explores the cultural and perceptual issues that divide banks and insurers. The 2008 study is the third of a continuing investigation of the concerns confronting banks and their insurance partners. Most sample surveys involve cross-sectional analysis. That is, they provide a snapshot of a sample of a population at a single point in time. Time however, is itself one of the most important variables in solving bank insurance issues. The study of change over time is called longitudinal analysis. Longitudinal analysis of survey data can be subdivided into three types: trend analysis, cohort analysis, and panel studies. Trend analysis examines overall change over time and cohort analysis means that the same group within that time-frame is peers or members with similar characteristics. As we now have three Bridging the Cultural Divide Studies completed in the USA, (2003, 2005 and 2008) we are using both trend and cohort analysis.
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.
Banks want programs, products, and processes tailored to their unique relationship with their customers. A customer entrusts a bank with his or her assets and expects certain basic bank benefits and services in exchange for the payment of fees. At the branch-based retail level, the relationship is uncomplicated: The bank holds your money until you want it back. To sell insurance along with bank products, banks need the person at the point of sale to be knowledgeable about both bank products and life insurance, regardless of distribution method: telephone, mail, face-to-face, or over the Internet. Insurers agree.