Effron Domestic Surveys

History and Background

In 2003 and 2005, the C F Effron Company, LLC with the support of industry sponsors and in cooperation with the ACLI conducted a ground breaking surveys to quantify the cultural and perceptual issues that divide banks and life insurers. Both the 2005 and 2003 Study used a statistical ''gap analysis'' technique to quantify issues.

Entitled ''Bridging the Cultural Divide Between Banks and Life Insurers'' (2005 and 2003 Study), the Studies probed both insurers and bankers to determine their sense of importance, interest, and satisfaction covering the variety of issues each organization tackles as they develop a working relationship. The Studies concurrently examined bank and insurer view's about insurance distribution, marketing & sales, product design, risk & profitability, administration, operation and effectiveness. The results highlighted significant gaps between banks and insurers in their satisfaction and evaluated the elements needed to optimize their joint distribution relationships.

Who participated?
The surveys have attracted seventy-seven banks and insurer participants. Responses were predominantly prepared by senior level management. The respondents reflected a significant representation of the leading executives in the bank insurance marketplace and with vast experience in the bank/insurance field. Of the top 11 banks, as ranked by insurance activity revenue, six participated in the survey (9 out of the top 30). Also, six of the top 10 insurance carriers, ranked by life insurance premiums generated through the bank channel, participated in the survey.

What happened in 2004?
The 2003 Study was just the starting point. During 2004, three full day workshops were conducted to explore in-depth the more visible differences between the banks and insurers. The sessions were used to examine, discuss and develop best practice recommendations to overcome the obstacles impeding the growth and distribution of life insurance. Small group meetings were structured to foster open, creative dialog amongst the participants.

The workshops were attended by senior managers of leading companies such as Transamerica, Nationwide, Aviva, Bank of America, Washington Mutual, and National City as well as representatives from other insurers and community banks which are listed in the Whitepaper. The Whitepaper summarizing bankers and insurers thought’s and recommendation’s for market solutions.   The result of the 2004 workshops can be viewed through this website by the 2005 Whitepaper.

What happened in 2006-2007
In 2006 the second USA Survey was completed. This Study built on the previous body of work and tests a number of the hypothesis and recommendations that were suggested by the Whitepaper. The 2005 Study again probes both insurers and bankers to determine their sense of importance, interest, and satisfaction covering the variety of issues each organization tackles as they develop a working relationship.

In 2007 RGA South Africa identified Bancassurance as a key business development area and wished to expand their knowledge of this field as well as assist its clients internationally with focused research. RGA South Africa hired C F Effron Company, LLC to conduct the first Bridging the Cultural Divide Between Banks and Insurers.