the overlooked gap in financial advice
TRANSCRIPT
![Page 1: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/1.jpg)
The Overlooked Gap in Financial AdviceWhy and how providing guidance on
property and casualty insurance can
help clients and advisors
Karen Jeschke, CIC, CPRIA
![Page 2: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/2.jpg)
World’s largest publicly traded P&C carrier
Leading provider of property and casualty insurance to successful individuals and families
Chubb
Global management consulting company with more than 3,000 consultants spread across 20 countries
Deep expertise in insurance and wealth advisory industries
Oliver Wyman
![Page 3: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/3.jpg)
The Upside and the Risk
![Page 4: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/4.jpg)
Why Financial Advisors Should Care about P&C Insurance
![Page 5: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/5.jpg)
Agenda
Case Studies Getting Started
The Significant Growth Opportunity
The Risk Key InsightsThe Risk
![Page 6: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/6.jpg)
The SignificantGrowth Opportunity
![Page 7: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/7.jpg)
Wealth Management is at a Crossroads
55%
of financial advisors indicate that one of the strongest pressures they face is a demand to provide more advice and service
![Page 8: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/8.jpg)
Wealth Management is at a Crossroads
85%of successful individuals want advisors to act as their quarterbacks
![Page 9: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/9.jpg)
Gap in What Financial Advisors Offer and What Successful Individuals Need
Not
% of successful families who want support for their P&C insurance from their Financial advisors
% of financial advisors providing successful individuals support withtheir P&C insurance
Expectations gap for personal P&C insurance support
49%
![Page 10: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/10.jpg)
The Wealth Management Industry is Competitive
of successful families and individuals surveyed indicated that they would
consider switching to an advisor who offered P&C support
40%
Would switch, even if they charged additional fees
16%
![Page 11: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/11.jpg)
Impact on Depth of Relationship
Enhanced satisfaction
46%Greater share of wallet
27%Improved longevity
41%Increased likelihood to recommend
46%
![Page 12: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/12.jpg)
The Risk
![Page 13: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/13.jpg)
Your Clients’ Plans Could be at Risk
Retirement College Education
RealEstate
Graduate School
![Page 14: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/14.jpg)
The Risk
87%of successful individuals surveyed are with standard carriers
![Page 15: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/15.jpg)
Key Insights
![Page 16: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/16.jpg)
Key Insight #1 – Not Enough Coverage
Some Successful Individuals are Not Protected Well Enough
![Page 17: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/17.jpg)
Key Insight #1- Not Enough Coverage
of successful families said they
never or rarely had a professional
assessment done
70%
![Page 18: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/18.jpg)
Key Insight #1 Not Enough Coverage
![Page 19: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/19.jpg)
Key Insight #2 Do Not Have Coverage
Successful Individuals are Not Protected at All
>1/3of those surveyed did not have an excess liability policy
![Page 20: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/20.jpg)
Key Insight #2 Do Not Have Coverage
lack coveragefor art
87%lack coverage
for jewelry
62%
![Page 21: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/21.jpg)
Key Insight #2 Do Not Have Coverage
lack floodinsurance
76%
![Page 22: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/22.jpg)
Key Insight #2 Do Not Have Coverage
don’t carry Employment Liability
Coverage
94%had heard of
Employment Liability Insurance
Only 23%
![Page 23: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/23.jpg)
Key Insight #3
Poses significant threat to deliver
on financial goals
![Page 24: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/24.jpg)
Case Studies
![Page 25: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/25.jpg)
Case Studies: Ramona and Tom
![Page 26: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/26.jpg)
Case Studies: Ramona and Tom
![Page 27: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/27.jpg)
Case Study: Rick and Sue
![Page 28: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/28.jpg)
Case Study: Rick and Sue
![Page 29: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/29.jpg)
What Does Optimized Coverage Mean?
The Right Limits and Coverage1
Deductibles That Reflect Risk Tolerance2
P&C Insurance Agent with Ongoing Support3
Insured with a Carrier that Pays Promptly4
Takes Advantage of All Discounts5
![Page 30: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/30.jpg)
Why There is Opportunity
![Page 31: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/31.jpg)
Getting Started
![Page 32: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/32.jpg)
How FAS can Help Clients with Their Insurance Needs
Select Partners and Make Introductions
Follow up Often
Understand and Educate
The Risk Broaden Your Relationships
Proactively Identify
![Page 33: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/33.jpg)
Understand and Educate
Research and Familiarize yourself
with the common ways insurance may
be inadequate for your clients
Understand the players in the personal P&C
insurance space, how they are different, and
what value they provide to different
types of clients
Know that as a trusted advisor for
your clients, you are paving the way for a
smoother process and increasing the
likelihood that your clients will secure proper coverage
![Page 34: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/34.jpg)
Proactively Identify
Apply what you know about the ways insurance
may be inadequate to your clients’ unique situation, determine if there may be
any risks or gaps
Make risk management a focal point for your
annual financial planning meetings or investment
discussions
![Page 35: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/35.jpg)
Broaden Your Relationships
Evaluate which contacts provide the service you
expect for your clients, then select the ones you trust
Seek out a broad variety of P&C insurance partner
contracts, including brokers and insurance companies
![Page 36: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/36.jpg)
Select Partners and Make Introductions
Make seamless introductions between
your clients and your trusted partners
Depending on the specific areas your clients may need assistance, select
the appropriate partners
![Page 37: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/37.jpg)
Follow Up Often
Ensure that your clients received the
P&C protection they need
Incorporate an annual review of exposures with your
clients, to understand what about their P&C
risks may have changed
As your clients’ financial picture
changes or evolves, stay on top of potential risks that
emerge and opportunities that present themselves
![Page 39: The Overlooked Gap in Financial Advice](https://reader031.vdocuments.us/reader031/viewer/2022022809/621b58debe97fe04e257b019/html5/thumbnails/39.jpg)
Questions