The Fact:
Seventy-five per cent of advisors expect proportionately more of their revenue to come from insurance over the next three years.

The Implications:
Cross-licensing, which has made it possible for most advisors to sell both insurance and mutual funds, has substantially impacted the average advisor’s view of the future. The vast majority of advisors plan to focus more on cross-selling among their existing clients. At the same time, advisors anticipate a decline in commissions from mutual funds sold on a DSC basis. Fifty-one per cent of advisors expect to generate proportionately less of their revenue from DSC commissions.

The Idea:
Advisors will need to implement defined processes for communicating their expanded service shelf to clients, who may not understand the full range of services provided. You can lead into a discussion on insurance as part of an annual review with all clients. Create a series of questions for your assistant to ask when setting the next annual review with your clients, which includes the date of their last insurance review and the types of insurance held. You can add substantial value to the client relationship by looking at the entire picture, whether or not the clients seems interested in moving or buying additional insurance. To the extent that you focus on the benefits of an integrated approach, you will be better positioned to bring over all of the client’s business.

The Next Step:
The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.caifastore.com and click on the Business Success Kit.

Attend CAIFA’s National Conference to learn more ways to achieve long-term success. Visit www.caifa.com for more information and to register.