As banks look for cost-effective ways to market insurance products to retail customers, several have turned to Answer Financial, an Encino, Calif., company that offers banks and other companies a multicarrier platform for marketing and distributing insurance.
The company announced a partnership Tuesday with Clayton, Mo.-based First Banks Inc., which has $8.5 billion of assets and 170 branches in Missouri, Illinois, California, and Texas.
Banks benefit from partnership with Answer Financial by avoiding the expense of establishing a multicarrier insurance platform for themselves, said Steven Kroll, a senior vice president of marketing at Answer Financial, and banks’ customers benefit from the broader array of carriers available to them.
Answer Financial approached First Banks about a partnership, Mr. Kroll said. His company had already forged relationships with several bank clients, he said, and was looking to expand its bank base. “We were already working with several banks, so we had gotten our feet wet,” he said.
The California company’s 16 bank partners include HSBC, whose U.S. bank unit is based in Buffalo; Associated Banc-Corp in Green Bay, Wis.; Comerica Inc., Detroit; FirstMerit Corp., Akron, Ohio; Huntington Bancshares, Columbus, Ohio; National City Corp., Cleveland; and Regions Financial Corp., Birmingham, Ala.
Jeffrey Wilson, a vice president of First Banc Insurors Agency, First Banks’ insurance subsidiary, did not return calls by press time.
Hartford Financial Services Group, Jackson National Life Insurance, and Travelers Life and Annuity are among the big-name carriers offered on Answer’s platform, though banks can decide which providers to include, Mr. Kroll said.
Answer Financial develops private-label Web sites for banks that use the company’s platform, he said. On the Web sites, prospects can compare plans, get side-by-side quotes, and apply for policies online. The sites also offer detailed information on different types of insurance plans and products.
The company also maintains an agent-staffed call center. Call center agents help customers through the purchase of insurance and offer pre- and post-sale customer services, Mr. Kroll said.
Answer Financial’s nonbank clients include employers such as Best Buy, H&R Block, Sears, and International Paper.
