International private banking operations are generally hot beds of opportunities for international off-shore life insurance, annuity and investment products. The high net-worth "world citizen" is typically a client of one or more private banks in more than one country. Account managers can provide significant "value added" services to their international clients when they can offer international insurance products.

Banks in general are getting more and more into the life insurance business. In Europe, corporate structures often include both. In the US, banks are now able to sell annuities and life insurance. Some have even entered into limited insurance company operations. AG Transnational has worked with banks and other financial institutions for the purpose of getting into the life insurance business full-time.

There are essentially four distinct functional elements in the life insurance business:
  1. Marketing and selling insurance products
  2. Managing investment services for a carrier 
  3. Assuming risk through reinsurance from a carrier 

  4. Providing full scale administration and servicing such as:

    • product design
    • administrative systems
    • underwriting and risk selection
    • policyholder services
    • marketing

Each of the above four functional elements can be a profit center for a bank. Each is able to stand on its own or be in conjunction with one or more of the others. It is generally recommended that banks proceed through the developmental process one step at a time in order to reduce the impact of required resources and capital. However, some banks may prefer to start with a full-fledge operation. AG Transnational can advise a bank in deciding how to enter the life insurance business and assist them in the implementation process.