[spirit]

There has been news lately that the Canadian banks are positioning themselves to sell insurance in "next door" venues. Do the insurance companies have the strength to counter this trend or will they partner up? How will this affect insurance stock prices?

 

[CanadianCapitalist]

There has been news lately that the Canadian banks are positioning themselves to sell insurance in "next door" venues. Do the insurance companies have the strength to counter this trend or will they partner up? How will this affect insurance stock prices?

It's already happening. Near where I live Royal Bank has a new branch. Right next door in the same building you can find RBC Insurance. The bank and the insurance office have separate entrance but the branding, the logos etc. are exactly the same.

 

[MoneyMaker]

Are the banks selling both P&C and Life now?

 

[spirit]

What do you think of the banks now?

It has been a few years since the market crash and I made a vow to educate myself re our financial investments. By and large I am satisfied with how our money is invested but I am a little obsessed with this new area of interest and drive my youngest son crazy talking about the financial situation. It worked and he launched out of the house 2 years ago. I have been watching Manulife for a few years and wondering how they are managing to cope with all the financial uncertainty. I was always glad that the insurance and banking business were seperate and a little leery when I heard banks were going to sell insurance. Lately I have been hearing more and more about annuities and with all the baby boomers retiring I think that is a product that might be advertised (flogged) more. So I wasn't surprised to hear the banks getting involved with insurance. Now my youngest son tells me he is being scouted to work on the insurance side of one of the major banks. The pressure will be on for us to buy annuities. My humble prediction.

 

[Square Root]

I personally would welcome it if banks could sell insurance from their branches. The recent article in he G&M points out th weaknesses inherent in he current regulatory system for insurance sales. The banks will lower prices and make insurance more accessible for consumrs. Insurance brokers have been very successful in preventing banks from selling insurance but this is just to keep their own incomes intact.

 

[kcowan]

The insurance lobby is a force to be reckoned with in Canada. If the banks get to sell insurance in the branches, there will have to be blood running in the streets of Ottawa. There is no such thing as mortgage insurance because mortgages never die, they just get paid out.