Is Your Local Agent Covered For This?

Richard W. Bellemare has had a lot to worry about over the last few years. His Bristol (Conn.) business, Tracy-Driscoll Insurance, is just now recovering from the recession-driven slump in insurance policy sales. As president of the agency, he must also vie with three local Allstate Insurance Group agencies and national insurers such as Geico Corp.

Now Bellemare has a big new worry: banks. Shawmut National Corp., with $30.7 billion in assets, is taking direct aim at insurance agencies like Tracy-Driscoll. Shawmut bought an agency in Connecticut last fall, and plans to sell all manner of policies in its network of branches. "We've got plenty of competition already," complains Bellemare, reflecting the view of many other agents. "They should stay out of the insurance business."