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Banks And Insurance: Full Scale Mergers Out - Integrated Services In

The movement to combine banks and insurance companies seems to have fizzled out, but banks and insurers are still finding ways to integrate services, Conning Research and Consulting, Inc. reports in a recently published study. According to Conning, banks have found that they don't need to manufacture the product in order to take advantage of opportunities in insurance. "Many banks have developed insurance sales programs that generate significant non-interest income for the banks, diversifying their revenue bases," said Terence Martin, Conning analyst. "Meanwhile, insurance companies have entered the retail banking market by either purchasing or chartering new banks."
"While the model of the fully integrated financial services firm has not developed as expected," said Stephan Christiansen, Conning Research Director, "it is clear from our analysis that both banks and insurers will continue to test growth opportunities in the intersections between the two industries. Banks look to increase fee income through distribution of insurance, while insurers look to increase assets under management by offering bank services to their clients."
"The Next Phase of Insurance and Banking: Rethinking and Retooling for Strategic Advancement" is available for purchase from Conning at 888-707-1177.