Most financial institutions recognize that insurance can be a key component of the household relationship. When a household has more than two or three core banking services with an institution, it will probably consider that bank its primary financial services provider. Such a relationship is usually more profitable than basic bank products servicing. These customer relationships must be protected, however. When scrutinizing potential insurance partners, bank compliance personnel should, of course, focus on things like the carrier's financial ratings and product menu.
Outside wholesalers can have a significant influence on bank agents.
Wholesalers are often well trained, highly compensated, and possess in-depth product knowledge. They are respected by many financial institutions' insurance agents. If they make the grade, fine. If not, cut them. Your program will face fewer compliance problems if wholesalers earn their way into your system.