Commercial Cross-Selling Strategies

Commercial Cross-Selling Strategies ABIA – Fall 2003 Conference Steven C. Terry President Hibernia Insurance Chris Melton Chairman & CEO Old National Signature Group Cindy Crawford Vice President – Integration Services Marsh, Berry & Company, Inc. Wayne Walkotten Senior Vice President Marsh, Berry & Company, Inc. Outline • • • • Overview of ONB Insurance Strategy Overview of Hibernia Insurance Strategy Critical Issues in the Drive for Success Questions & Answers Old National Bank • $9 Billion Asset Bank Headquartered in Evansville, Indiana. • Over $6.5 Billion in Deposits and $5.5 Billion in Loans. • Banking presence in Indiana, Mid-western Ohio, Southeastern Illinois, Western Kentucky, and Northwestern Tennessee. • 134 Banking Branches in Five States ONB Insurance The Old National Signature Group is the Private Banking,Trust, Brokerage, and Insurance Business of Old National. • The “Signature Select” program combines the efforts of private client group, retirement planning services, trust, employee benefits, asset management, and insurance for high net worth customers • Insurance platforms currently consist of Terre Haute, Evansville, and Fort Wayne in Indiana and St. Louis Missouri. • The agency is currently $50 M of revenue. With current acquisition activity, the agency should total $60 M+ on an annualized basis by YE 2003. ONB Strategy • Overview of ONB Insurance Strategy – Long-term Vision – Issues of Acquiring an Out of Market Agency – INBANK Insurance Unit Signature Select Client Experience Signature Select Client Experience “The Private Bank” / Wealth Management Company “The Private Bank Signature Select Client Experience” Commercial Lender Portfolio Manager Financial Planning Employee Benefits Specialist Executive Client Advisor and/or PCO Trust Administrator Financial Advisor Mortgage Specialist Commercial Insurance RPS Specialist Life/High-end Insurance Specialist Hibernia Insurance Agency, LLC • 52nd Largest Broker of US Business $35,000,000 in Revenue • Hibernia Life - $18,000,000 in Revenue • Hibernia Property-Casualty – $17,500,000 in Revenue • Personal Lines - $1,500,000 • Large Commercial - $14,400,000 – Property and Casualty & Employee Benefits • Small Commercial - $900,000 – 4 Locations in Louisiana – 109 Employees Hibernia Strategy • Overview of Hibernia Insurance Strategy – Long-term Vision – Cross-Selling Commercial Insurance to Bank Customers Cross-Selling Commercial Insurance to Bank Customers Can it Work? Yes! • • • • • Non-Profit Sports Franchise Energy/Marine Commercial Real Estate Bank Vendor $400,000 Revenue $110,000 Revenue $90,000 Revenue $43,000 Revenue $40,000 Revenue Merging Two Sales Cultures • Designate a Bank Liaison within the Insurance Organization – Focused on Establishing Relationships – Education – Managing referrals • Establish Direct Relationships between Producers and Relationship Managers Merge Two Sales Cultures • Lead with your Strengths • Niche Markets – Construction – Oil, Gas, Energy – Transportation – Marine – Property Merging Two Sales Cultures • Select Opportunities to use Bank Leverage – Vendors – Sponsorships Getting Started • Strategies to Build Trust between Relationship Managers and Insurance Producers – Introductions – Networking/Social Events – Ongoing Meetings – Building Teams Educating the Bankers • • • • Definition of a Qualified Referral Your Products and Niches Why Customers Change Agents Length of a Sales Cycle – It can take 12 Months or More – Insurance Products Gaining Respect & Trust • The Referral – Qualified Direct Introduction to Customer – Respond to Every Referral – Communicate throughout the Sales Process • Share the Success Stories Encourage the Exchange • Strategies to Encourage the Exchange of Referrals – Team or Individual Goals – Make them Required? – How are They Measured or Tracked • Establish Meaningful Criteria for Measuring Sales and Referral Activity The Close • Leverage Banker Relationship • Go for Broker of Record • Bring the Banker to the Meeting – Education Value – Relationship Value Compensation • Carrot – One Time Payment vs. Recurring or Shared Revenue – Other Rewards • Performance Impacts Bankers Evaluation • Stick – Performance Impacts Banker Evaluation • Compliance Other Issues • Regulatory Compliance Issues – Privacy – Loan Customers • Technology & Communication Issues