We just finished issue number 199 of our Online Banking Report. Given that it’s a monthly publication, you can do the math, and see that we’ve been at this for a while. We’ve covered a lot of ground, but until now, we’d never taken an in-depth look at the insurance side of online delivery.

Why? There have been so many opportunities with core deposit/credit products that the “insurance report” kept getting pushed out into the future. From the looks of it, the same dynamic has played out in the banking industry. Sure, U.S. banks took in $7 billion brokering insurance last year (and a similar amount in underwriting). But “insurance” isn’t even mentioned on the websites of 7 of the largest 15 banks. 

It’s time to rethink where insurance fits in your product roadmap. Here’s why:

• It’s a huge expense with premiums amounting to more than 7% of global GDP
• Consumers are uncertain about their insurance needs and options
• New types of insurance are even less understood
• Online/mobile delivery (will) make it much easier to compare prices and purchase
• Mobile delivery is especially valuable for the claims process for automobiles
• Potential commissions and revenues are many times the $5/mo ill-fated debit card fee
• Consumers are actually willing to pay for risk reduction/peace of mind provided

It’s a win-win for banks and their customers. And we expect a burst of activity in this area during the next few years (note 1).

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About the report
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Selling Insurance Online (link)
Can insurance help fill the fee-income gap at banks/credit unions?

Author: Jim Bruene, Editor & Founder

Published: 9 Dec 2011

Length: 48 pages, 24 tables, 11,000 words

Cost: No extra charge to OBR subscribers, US$395 for others here

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BB&T mentions insurance three times on its homepage

Notes: 
1. In addition to upping our insurance coverage here, we hope to bring more insurance innovations to our Finovate conference as well. Know a cool insurance startup with new technology? Email jim@netbanker.com for info on Finovate.