Insurance: Hancock, to Boost Bank Sales, Is Trying Out Nonlife Policies

Signaling a new focus on bank sales, John Hancock Mutual Life Insurance Co. is introducing products such as long-term-care and term policies to that marketplace.

The Boston-based insurance and mutual fund company - a relative latecomer to the bank-insurance sales game - sees opportunity in selling nonlife insurance policies through banks. It has begun to roll out long- term-care insurance to its bank clients, and it is testing selling term insurance at Fleet Financial Group, Boston.

"I haven't yet seen a super successful high volume insurance sales program through a bank," said William S. Nichols a Hancock senior vice president who oversees sales through financial institutions.

In another move to increase its bank sales, Hancock has struck an agreement to sell its wares through Independent Financial Marketing Group, a subsidiary of a competitor, Liberty Financial Cos.

But it is in long-term-care policies that Mr. Nichols would like to place his largest bets. He believes investment representatives are more likely to sell long-term care than life insurance because it lends itself to sales pitches for retirement savings plan.

"A rep can offer long-term care by saying to his client 'I can help you save for retirement, and I can protect those assets if you go into a nursing home," he said.

One bank that plans to sell the policies soon is Choice One Bank, Sparta, Mich., which believes that long-term-care insurance will take off at banks soon.

"Long-term care is a natural fit because the clientele of a bank tends to be older," said Kelly Potes, vice president overseeing the sale of insurance and mutual funds at Choice One.

Mr. Potes, who has not decided which companies to include in his program, said elderly customers already have life insurance. But they lack long-term-care policies, which are a relatively new product.

"Their greatest fear when they reach that point is, 'could I get an illness that will wipe out my savings."' he said.

Hancock always believed in the potential of banks, but didn't make a serious move until it beefed up its insurance and mutual fund product line, said Mr. Nichols. In a move to more efficiently promote all of its products to banks, Hancock last March merged its insurance product and mutual fund sales divisions.

Fixed annuity sales contribute 83% of the company's sales through banks. Most of those sales come from Essex Corp., a New York-based marketer of insurance products through banks.

Mutual fund sales - through Southern National Corp., Bank of Boston Corp., and Fleet - contribute just 5% of Hancock's bank total, Mr. Nichols said. He's hoping to boost that to 20% over the next couple of years.

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