For those wanting to remain in the business, a bank offers a needed infusion of capital. Nearing retirement, the principals of one large agency were close to having their backs against a financial wall. Others in the company were either unable to buy their stock or had no interest. Then a bank with plenty of cash rode in and swept the partners off their feet. The deal was done in near-record time.
Many bankers seem overjoyed at the prospect of owning insurance agencies.
In fact, it's become fashionable, even trendy. There appears to be something of a lemming effect. Big banks are buying big agencies and smaller banks are grabbing the smaller ones. The photo accompanying the news story was all smiles. There are good reasons why bankers and insurance agents should join forces to attract and hold customers.