A recent survey from LIMRA and EY finds that the way things have been in the financial industry is changing — and so are industry assumptions.
The LIMRA-EY Experienced Financial Advisor Survey finds that all types of advisory businesses are experiencing growth, with 80% of respondents saying that they’ve seen significant increases in gross income over the last few years — and for half of respondents, it was because of an increase in the number of clients. In fact, overall, they saw a 22% increase over the last two years.
But with growth comes convergence, as competition stiffens and more practices have to offer more products and services to keep up with client expectations, as well as fee-based advisory services. And while life insurance used to be the major product line for insurance professionals, that’s no longer true; in fact, it makes up less than half their business, with annuities and investments, as well as other products, stepping up to fill the gap.
Respondents are relying more and more on digital tools, also thanks to consumer pressure; says the report, “Clients expect to interact with advisors in any media, anywhere, any time.” As a result, digital communication has also made inroads into prospecting as well as in ongoing client engagement.