It has been roughly a decade since federal lawmakers cleared the way for insurance carriers to enter banking, yet progress has been more the exception than the rule. Only a few players have built up a lending business and profits have been scarce.
Now there's a chance to make up lost ground. At a time when the U.S. mortgage lending crisis has brought the banking industry to its knees, the market is wide open for alternative providers of credit and deposit products. This spells opportunity for resilient carriers that have delayed exploiting banking expansion opportunities.
To be sure, not all carriers are poised to act. Troubled investments in mortgage-backed securities and commercial real estate continue to pose major headaches for some companies, and there are problems with collateralized debt obligations as well.
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