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May 31, 2012 at 08:00 PM
Talk of a possible sale of Aviva USA gives advisors an opportunity to review retirement plans with the clients.
In April, the Financial Times reported that Aviva PLC was mulling the sale of its U.S. unit. Although the U.S. is on a list of 12 countries identified by Aviva as “core,” the division is under pressure as it specializes in selling fixed indexed annuities, which are policies that offer savers guaranteed returns, but which require the group to set aside large amounts of capital.
What it means for advisors
What does all this mean for advisors and agents who offer Aviva products? How can they address these issues with clients?
Advisors can be proactive by conducting an annual review with their clients. Policyholders have the security of their annuity contracts and the features that will provide the stated benefits. The question of what will happen with Aviva does not risk the contractual arrangement your client has with Aviva. This is not an issue similar to AIG back in 2008; this is a proactive business decision that, if reports are true, is merely being discussed.
There is an old saying in sales–success is when opportunity and preparedness meet. If anything this provides you an opportunity to show your value to your client by contacting them, performing an annual review and helping them draw up a game plan when their current contract matures. Help your customers be prepared for the next decision they may need to make in managing their assets and fulfilling their financial goals.
