Banks Selling Insurance – Helping Customers

For the past 15 years banks have been trying to figure out how to sell insurance.

The idea is to increase fee income and leverage the relationships – “synergy” is the word that gets thrown about.

Sometimes it works OK – other times, well, not so good.

At the same time, insurance agents have done an abysmal job of selling two types of insurance:

–Employee Dishonesty Insurance

–Computer Fraud Insurance

I’m calling on banks to take over these two areas of coverage. Start selling both to your commercial customers.  Let’s find an insurer who will put together a program that allows bankers to sell these two policies.  Add cyber liability insurance to it (which most insurance agents are just starting to push.)

You sell credit life insurance and disability to your customers.  This is a more important need.  It also gets your bank out from under two incidents that cause havoc…

–Customer’s employee embezzles funds.  The customer wonders why you didn’t do more to protect them.

–Customer fails to use effective password management and their accounts get hacked.  Again, the customer comes to you after the fact.

Sell the coverage.  Partner with an insurance agent to sell the coverage.  Build a program to sell the coverage.  If nothing else, contact all your commercial customers with the following message:

Dear Customer, 

Our bank works hard to protect your money and our money.  We buy alarms, video cameras, big locks, and big vaults.  We work to provide you with safe and secure access to your accounts by computer.  We use technology to keep bad guys out – just like we use vaults, locks, and alarms.

We need your help.  Take proper measures to prevent fraud and theft.  Build good processes to protect your accounts (like one person signing checks and another reconciling accounts).  Protect your passwords, account numbers, login info, and the like.  Train your employees to be aware of phishing and other forms of fraud. Prevention and preparation.  

We promise to do our best to protect your accounts.  We can not, however, do it alone!  You have to help. 

Protect yourself from the bad guys.  Buy insurance that covers you for employees who steal from you, hackers that get access to your computers, and the liability that you could face from cyber crime.

Talk with your insurance agent about employee dishonesty insurance, computer fraud insurance, and cyber liability coverage.  Call your agent and ask if you have coverage.  Maybe this is a good time for you to invite your agent over for a chat and a review of your coverage. 

(Insert blurb here about your bank’s insurance offerings…) 


Your Friendly Banker