Financial advisors of all stripes have had to deal with a multitude of regulatory changes over the past few years. And for insurance advi-sors, some changes — such as the introduction of the National Do Not Call List — have been problematic.
Fortunately, most firms in this year’s Insurance Advisors’ Report Card stepped up to provide advisors with the support they need to keep their businesses running smoothly.
This year, advisors were asked to rate their firm’s “support for helping to deal with changes in the regulatory environment” for the first time. And although many advisors said they wish their firms would do more to stand up to the regulatory bodies, the advisors appreciate the support they have received — especially the support when the DNCL came out.
Both the average overall performance and the importance rating for the category were 8.4. And advisors who work at dedicated sales agencies, the sole independent direct sales agency and through managing general agencies were glad to receive clear and timely communication about the changes pertaining to the DNCL, as well as training in strategies for generating new business.
Calgary-based MGA PPI Solutions Inc. (formerly known as Financial Management Group of Cos. Inc.) and the Vaughan, Ont.-based Canadian operations of specialized MGA World Financial Group Inc. received the most praise; both were rated tops in the category, at 9.2.
“[Management is] very much aware of the issues brokers face in running their practices,” says a PPI Solutions advisor in Alberta. “And they make a reasonable effort to provide us with support.”
Adds a colleague in Ontario: “They always kept us in the loop and corresponded with us on any changes.”
In fact, when the DNCL came out, PPI Solutions made sure advisors were not only aware of the changes but had the support necessary to grow their businesses. “We helped our advisors on how to get referrals, how to talk to your clients about referrals,” says president and CEO Jim Virtue, “and on how to sell additional products to clients.”
Similarly, WFG advisors appreciated their MGA’s emphasis on communication during the introduction of the DNCL. Says an advisor in Ontario: “We need to know what’s going on, and we are updated.”
According to Richard Williams, president of WFG, branch managers were encouraged to support advisors who were having trouble adjusting to the new paradigm.
@page_break@On the dedicated sales agency side, advisors with Waterloo, Ont.-based Sun Life Financial (Canada) Inc. were the happiest with their firm’s support, rating it at 8.4. Advisors were impressed by the high volume of communications materials and training they received.
Says a Sun Life advisor in On-tario: “[The firm is] good at providing tools, strategies and making sure that we know what is going on.”
Adds a colleague in British Columbia: “They send us emails about upcoming changes and have a presenter visit branches and show us what is happening.”
Vicken Kazazian, senior vice president, career sales force, with Sun Life, notes that the firm has devoted a significant amount of effort to providing advisors with support: “Sun Life explained the new rules and supported our advisors with training programs in the form of web-inars, scripts and printed material so our advisors would know how to handle any situation.”
Some firms, though, failed to meet advisors’ expectations when it came to providing such support — and one firm offered none at all. Among the former group is Woodbridge, Ont.-based MGA Hub Financial Inc. — whose advisors rated it at 6.6 in the category, voicing frustrations about lack of communication.
“They do not give us enough information about regulatory changes,” says a Hub advisor in B.C. “I find out more on my own.”
Although that advisor is not alone in his low opinion of Hub’s support efforts in this area, it appears that there is some miscommunication. The MGA is, indeed, making an effort, says Hub’s president, Terri DiFlorio: “We were constantly informing advisors on what they should be doing and on what they should not be doing when the DNCL came out.”
Advisors with Mississauga, Ont.-based RBC Life Insurance Co. were not provided with any support. They expressed disappointment at this — with an importance rating of 8.6 — and said they would value such support highly. “They make us aware of the changes,” says an RBC Life advi-sor in Atlantic Canada, “but they do not propose alternatives.”
Fortunately, RBC Life executives realize the importance of providing such help and say support is on the way. Says Ernie Murdoch, senior vice president of career sales with RBC Life: “Because of the DNCL legislation, we are looking at opportunities, such as what can we do from the leads perspective.”
IE