Sales people at Black Horse Financial Services, Abbey Life's arm which sells direct to Lloyds Bank customers, do not have to tramp around seeking clients; potential contacts are already logged and analysed in abundance in Lloyds' customer records.
Some of the gilt might be coming off the bancassurance dream, however.
Half-year profits announced yesterday by Abbey Life's BHFS arm fell by pounds 16m to pounds 44m. Judging by these results, bancassurance seems to be faring no better than the industry as a whole - worse if anything. The public appears increasingly reluctant to commit itself to long-term life assurance while sales practices and commission levels remain in doubt.
All of which is bad news for banks like NatWest, whose 'bancassurance' arm is now one of the 15 biggest life companies in the UK from a standing start only 18 months ago. TSB is another bank which has hitched its future to becoming a personal finance supermarket.
Undoubtedly bancassurance will eventually become a reasonable money spinner but those who dreamt of mega bucks are likely to be sadly disappointed.Reuse content