LIFE
Turn Threats Into Opportunities hat a “lone wolf” life insurW ance producer can learn from the changing wealth management environment. By Tyler Horning
E
ven though I consider myself a life insurance purist, I must admit I am an avid reader of the investment advisory press. Over the years, I have been overwhelmed by the stories of immense change in the wealth management industry. More recently, the wealth management sector has experienced some seismic events: » Not one but two major financial crises. » New regulation. » Technology companies entering the business in the form of robo advisors. » An aging advisor force and business succession issues. » A major shift from commission compensation to a fee-only world. Wealth managers are experiencing an unprecedented pace and scope of change, which is accelerating rapidly. It seems that the life insurance business 30
now is poised for a similar period of disruption, growth and evolution. The question is not if change will take place, but when and how it will occur. We are seeing the early signs of this revolution across many facets of our business: » Electronic applications. » Exam-free underwriting. » Engagement with clients via social media. » Programs of healthy engagement tied to insurance policies. » An aging producer force. » The impact of lower interest rates on insurance companies. As an insurance producer, I can feel the impact of these changes and many more like them. These changes are similar to a snowball rolling down a hill while picking up size, speed and momentum. We are just getting started. So the question is, what can we learn from the wealth management business’s recent journey? I argue there are two major strategies wealth managers have implemented to help cope with these shifting circumstances: Create
InsuranceNewsNet Magazine » February 2017
an institutionalized team approach and embrace technology. Proactive producers should use the playbook pages of teams and technology to turn defense into offense in their business. Using this playbook will turn potential threats into opportunity. Let’s look at each of these topics individually.
[1] Create an Institutionalized Team Approach
Sustainable wealth management practices have been able to differentiate themselves by institutionalizing their relationships. Instead of seeking to draw a client or referral source to a practice because of an individual, the goal is for a client to fall in love with the practice’s process and team. We have seen this approach in action with numerous investment advisor partners of ours. The lead advisor, who has remained by the client’s side for years, is able to transition that relationship to the junior advisor seamlessly. The planning, the discovery and the institutional knowledge about each client is not lost, but instead transferred to the next generation within the organization.