Despite the challenges of selling in the summer months, bank reps’ commission-only productivity slipped only 3% in July, from $15,253 to $14,738, according the Bank Insurance and Securities Association’s latest Monthly Productivity Report.
Reps earning fee plus commission actually grew their production, up almost 14% in July to $28,868 from $25,361 in June, but Scott Stathis, Kehrer-LIMRA’s managing director and chief operating officer, said it could have been better. “July’s fee and commissions revenue was disappointing since it is a month when quarterly asset management fees are collected,” he explained. May, October and January are the other months when fees. “The bump in normal times for a fee collection month would be about 30%, so the 14% is half of what it should be.”
Platform reps, or licensed bankers, are doing extraordinarily well, averaging $1,393 in sales each, down only $1 from June and up 75% compared to July 2009. What makes this all the more remarkable is that platform reps traditionally sell a lot of fixed annuities, Stathis says. With rates so low, fixed-annuity sales have been down for months, but licensed bankers have filled the void by selling a lot more single-premium life insurance, sales of which have more or less doubled in banks since 2009.
“One thing for sure is that they are selling a lot more life insurance,” Stathis says. “Amazingly it looks like platform reps sold around 40% more life in July than they did in June. This is important since they are diversifying their product sales portfolio which is allowing them to even out what would otherwise be dips. Amazing what happens when you practice what you preach regarding a diversified portfolio!”