Commercial CrossSelling Strategies

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Commercial Cross-Selling Strategies
ABIA Fall 2003 Conference
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Outline

• Overview of ONB Insurance Strategy
• Overview of Hibernia Insurance Strategy
• Critical Issues in the Drive for Success
• Questions Answers

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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

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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.

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ONB Strategy

• Overview of ONB Insurance Strategy
• Long-term Vision
• Issues of Acquiring an Out of Market Agency
• INBANK Insurance Unit

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Signature Select Client Experience The Private
Bank / Wealth Management Company
Signature Select Client Experience The Private
Bank Signature Select Client Experience
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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

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Hibernia Strategy

• Overview of Hibernia Insurance Strategy
• Long-term Vision
• Cross-Selling Commercial Insurance to Bank
  Customers

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Cross-Selling Commercial Insurance to Bank
Customers

• Can it Work?

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Yes!

• Non-Profit 400,000 Revenue
• Sports Franchise 110,000 Revenue
• Energy/Marine 90,000 Revenue
• Commercial Real Estate 43,000 Revenue
• Bank Vendor 40,000 Revenue

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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

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Merge Two Sales Cultures

• Lead with your Strengths
• Niche Markets
• Construction
• Oil, Gas, Energy
• Transportation
• Marine
• Property

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Merging Two Sales Cultures

• Select Opportunities to use Bank Leverage
• Vendors
• Sponsorships

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Getting Started

• Strategies to Build Trust between Relationship
  Managers and Insurance Producers
• Introductions
• Networking/Social Events
• Ongoing Meetings
• Building Teams

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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

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Gaining Respect Trust

• The Referral
• Qualified Direct Introduction to Customer
• Respond to Every Referral
• Communicate throughout the Sales Process
• Share the Success Stories

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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

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The Close

• Leverage Banker Relationship
• Go for Broker of Record
• Bring the Banker to the Meeting
• Education Value
• Relationship Value

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Compensation

• Carrot
• One Time Payment vs. Recurring or Shared Revenue
• Other Rewards
• Performance Impacts Bankers Evaluation
• Stick
• Performance Impacts Banker Evaluation
• Compliance

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Other Issues

• Regulatory Compliance Issues
• Privacy
• Loan Customers
• Technology Communication Issues