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Advisers need to redefine their value proposition, say industry leaders


Susan Yellin

June 29, 2018 07:00

Michael Rogers, Jim Brownlee and Jim Burton | Photo : PhotoVisions

If he wants to take advantage of the market growth in life insurance, the financial advisor must specialize and evolve with the technology. In short, it must redefine its value proposition.

This is one of the leaders of life insurance who participated in a panel on the future of the financial advisor held at the Canada Sales Congress in Toronto on may 23. This event is organized by Les Éditions du Journal de l’assurance.

Jim Brownlee, vice-president, partnerships affiliated with general agent at Canada Life, said that advisers must update the way they define their role if they want to prosper in the years to come. It has compared to the experiences of the travel agents in the course of the last decade. It is far from the time when people were describing briefly what they wanted to do during their vacation and let the tour operator take care of the rest.

“The world has changed. It should not be one of its travel agents. It is necessary to become a tourist guide, who know the destination to which he leads his client. We probably need to be there to not only inform, but also guide him throughout his journey to make it even more interesting, satisfying and rewarding. “

Take the role of pilot

Because of new disruptive elements such as the arrival of the cryptomonnaie and the amendment of the regulations, it is even more necessary for financial advisors to assume a pilot role with their customers, ” says Mr Brownlee. The goal : help them to see where they go and how they can get there.

The advisor may also choose to change the structure of its business. It may well act within a team that includes an accountant and a lawyer instead of going it alone, writes Michael Rogers, senior vice president, sales and distribution, at Desjardins Insurance.

He noted that the advisors did not need to be able to do it all themselves. They would rather interest to form or enter a team, such as those in law firms and doctors ‘ offices, in order to offer a more comprehensive.

“We need to become more than what we are currently,” said Jim Burton, president and chief executive officer of PPI. We need to hone our knowledge, to invest in ourselves and grow. There are several billions of dollars in opportunities that await us. “

According to Michael Rogers, the advisors did not need to do the feet and hands to increase their sales. He thinks that a counsellor can draw a great part of the growth in the volume of its current business and to wager, in particular on the issues of constant change, as the tax rules.

Review your client

“Don’t just make a sale to a customer and then forget about it,” he stressed. This customer that you have seen, there are 10, 15 or 20 years now has new needs. It also has children and grandchildren. This is probably one of the main sources of growth to be able to materialize fast enough. “

Jim Burton adds that advisors should be shaking and to adopt new ways of thinking and intervene in order to differentiate. He mentions that some advisors are interested in customer high-net-worth, which can lead them to focus on more complicated applications of life insurance, such as shareholder agreements or funding in estate planning, equalization of inheritance or a bequest to charity.

Mr. Burton also noted that growth opportunities ahead, with 850 million are transferred to the baby-boomer generation. It is expected that 3 000 billions of dollars are being sent by the latter to the next generation.

Technology : an asset, not an enemy

Jim Burton, who also chairs the foundation Family Enterprise Xchange Foundation, said that the insurance advisors may also be considered to play a role of an advisor to family businesses, who have now control over 60 % of the economy. For this is the rise of new technologies, he believes that ” advisors can be an asset rather than an enemy. “The robot-board is an example, have said the three panelists.

The advisor flesh and bone will remain necessary, said Mr Brownlee. “We need to be able to contribute to the advance of the people in spite of the hubbub. They are always going to want to do business with someone who can explain where they go and where they’re going. “

Anyway, the industry is not at its last moments, he warns. The acquisition of general agents by the insurers to prove it, ” he said.

Michael Rogers said that the industry seems to be inspired by the high-tech enterprises to organize its future distribution network. For example, Apple has invested in stores on the storefront, adding to her popular presence on the Internet. This allows customers who want an in-store experience of the living, without being subject to delay of delivery of the product, ” he says.

“There will be consolidation. We need to rethink the way we deal with the customer. She is on the lookout for a different experience. ”

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