ABIA Annual Conference

1
ABIA Annual Conference October 8-10, 2003
Fee Income Optimism through Integrated
Marketing Programs
Presented By Nasim Ali, Executive Vice President
Marketing Sales, SBLI USA Gene Schaefer, Senior
Vice President, New York Community Bank Jim
Potter, Director of Insurance, GreenPoint Bank
2
History
SBLI was established in 1934 by Justice Louis D.
Brandeis NYCB has been selling life insurance
products since 1936 GreenPoint Bank has been
selling life insurance products since 1955
3
History
SBLI was born out of a need for low-cost life
insurance for middle- to low-income
households Savings Banks were seen as a viable
alternative to insurance companies.
4
Platform SalesGene Schaefer, New York
Community Bank
5
Success Story on the Platform
NYCB was the 18th bank in New York to open an
SBLI Department. NYCB is a 12.4 billion thrift,
with 108 offices in New York New Jersey and is
the sixth largest bank in the nation based on its
market cap. (4.1 billion as of June 30,
2003) The Bank currently employs - 300
Insurance Licensed Representatives - 120
Dedicated Reps (Series 6) - 40
Investment Specialists (Series 7)
6
A Success Story on the Platform
Third Party Products Include - Life
Insurance - Accident Health
Insurance - Annuities (Fixed
Variable) - Mutual Funds
- Accidental Death
7
Key Points for Success
- CSR model vs. Dedicated Agent Model - Bank
Senior Management Commitment - Integrated
Marketing Program - Insurance Company Support -
Wholesaling to CSR - Training - Having the right
partner
8
A Success Story on the Platform
A One Stop Shop - A Financial
Supermarket - 25 to 30 of
non-deposit fee income can come
from financial services
9
Keys To Success Services
- Executive Buy-In/Accountability
- Team Leading Coaching
- Compensation - Incentives
- Referral Program -
Goals and Tracking
10
Before You Sell You Should Know Services
- Who are your customers? - What
products should you offer? - What
Strategic Partner to have? - Who
should staff your branches? -
Should you offer Annuities?
11
MYTH Selling Insurance, Annuities and Mutual
Funds may hurt deposit growth or cause
disintermediation. FACT Selling financial
products builds brand awareness and established
the bank as a financial resource center.
12
Buy, Build or Rent a Sales Force
- Platform, Dedicated, or Hybrid -
Set-up costs - Training Advice -
Licensing Issues - Sharing the risks
- Administrative burdens customer service,
policy issuance, claims admin
13
Key Points

• Insurance Management reports through Retail
  Banking
• License all CSRs and Branch Managers
• Branch Managers report to District Managers
• Establish Premium Goals for each Branch Manager
• Introduce incentive compensation
• Reward and recognition program
• Minimum monthly goal per licensed CSR

14
Direct Marketing Telemarketing Jim Potter,
GreenPoint Bank
15
GreenPoint Insurance

• GreenPoint Bank
• GreenPoint Mortgage
• GreenPoint Credit

16
Why Utilize Direct Marketing?

• Provides incremental revenue
• Expands insurance brand awareness
• Provides ability to target hard to reach
  customers
• Allows targeted life event marketing

17
Forms of Direct Marketing

• Solo targeted solicitation
• Product Insert
• Telemarketing
• Lead generator
• Internet
• Statement Messaging
• Statement Solicitation

18
Strategies for Success

• Align programs with distribution channels and
  customer demographics
• Offer a variety of products
• Access the carriers knowledge of what works and
  what doesnt
• Utilize life event marketing
• Utilize hot list marketing techniques

19
Strategies for Success

• Track who buys develop models for future
  campaigns
• Develop contact management database

20
Paving the way to Profitable
PartnershipsNasim Ali, SBLI USA
21
Life Insurance Industry Facts Uninsured Americans

• 31 of U.S. households have no life insurance
  protection.
• Over 40 of all Americans (104 million people)
  have no life insurance coverage.
• The basic life insurance need is estimated to be
  5 trillion.

Source LIMRA, LOMA, ACLI
22
Life Insurance Industry Facts Uninsured Americans

• The percent of households that do not have any
  type of life insurance has been increasing
• The percent of people who do not own life
  insurance has been increasing also

Source LIMRA
23
Life Insurance Industry FactsUNDER-insured
Americans

• 80 of Americans who are insured are dramatically
  UNDER-insured.
• Households with life insurance coverage have far
  less coverage than they need. The median amount
  for all adults estimated at just over 30,000.

250,000 is the minimum per household
average many life insurance consultants
recommend. See Stephen Advokat, The Facts of
Life.
24
Target Audience

• Consumers
• lt80K HH Income
• (Low to moderate income segment earning 75,000
  or less HH income comprises 77.4 of the U.S.
  households.)
• Women
• African American
• Hispanic
• Asian
• South Asian
• Those with no life insurance or who are
  underinsured
• Heads of family or households
• The underserved and neglected
• The people who make America work.

Source 2000 US Census
25
Paving the Way to Profits

• Profitable partnerships
• The Financial Modernization Act -
  Gramm-Leach-Bliley has paved the way for
  marketing insurance products/services through
  partnerships with banks and agencies
• We now have a path leading us directly to the
  customer.
• THERE IS AN OPEN MARKET TO PENETRATE
• THERE IS A VEHICLE WITH WHICH TO DO IT

26
Banks Can Fill the Void
Banks are well positioned to capitalize on this
open area in the market

• Banks are trusted by consumers
• Banks are the Brick and Morter
• Banks already posses the infrastructure to
  distribute financial services products

27
SBLI USA Integrated Marketing Plan

• Multi-channel Distribution
• Bank Platform
• Direct Mail
• Telemarketing
• Internet
• Branding / Advertising

28
Integrated Marketing Plan

• Simple Products that are Easy to Purchase
• Tailored and positioned for each specific
  distribution channel
• Internet
• Thank You ADD / SeniorLife
• Lead Generation for Term Whole Life
• Direct Marketing - Mail or Telemarketing
• Simple Issue Term / Thank You Customer Advantage
  Term / Employee Group Life / Group Mortgage /
  SeniorLife / Thank You ADD / SBLI USA Savers
  Club
• Face-to-Face
• Whole Life / Underwritten Term
• Simple Issue Term / SeniorLife / Juvenile Term

29
Things to Consider

• When Comparing Life Insurance Companies Consider
• Value Affordability
• Quality Products
• Products that are easy to buy and simple to
  understand.

30
Consider Customer Service

• Remember the importance of
• Access - a company must make use of new
  technologies to reach the customer.
• Personal touch - friendly, knowledgeable service
  is key.
• Ease - convenient hours of service fast and
  reliable service.

31
Consider Banking Experience

• Questions to ask
• Is your life insurance company actively seeking
  partnerships?
• Does the life insurance company understand the
  bank culture?
• Do they provide training and customer support
  programs for bank-licensed agents?

32
Require Compliance and Due Diligence

• Remember the importance of
• A companys regulatory history
• assess compliance record
• review Blue Book
• Due Diligence, while providing valuable services
  to the customer, offers many advantages
• increased customer retention
• cross-selling opportunities

33
A Successful Relationship QA