The overlooked gap in financial advice: research paper
The Overlook Gap in Financial Advice
As a financial advisor, you are experiencing rapid changes in client expectations. Like many other financial advisors in your industry you are looking for new ways to add value and grow your businesses. One way to tackle that challenge: understand and address your clients’ property and casualty (P&C) needs.
An opportunity for both you and your clients
An opportunity for both you and your clients
Successful individuals want P&C support
In a recent survey, we found that 77% of successful individuals expected their financial advisors to understand and point out property and casualty (P&C) risks they faced, such as inadequate car, homeowner’s, or personal liability coverage. However, only 28% of financial advisors provide that service. By supporting your clients’ P&C needs, you and your clients can both benefit.
40%
would consider switching to an advisor who offered P&C support*
16%
of those would switch even if the advisor charged more*
85%
believe its important for their financial advisor to act as quarterback*
37%
of financial advisors have a relationship with a P&C agent*
LEARN MORE
Watch our research story
Hear why and how Chubb engaged financial advisors and successful individuals to learn more about their behavior and expectations.
Our research supports a better outcome.
You don’t need to be a P&C expert
Hear how financial advisors and P&C Agents are working together to benefit their clients.
The risk with your clients' financial goals
The risk with your clients' financial goals
Many successful individuals are not fully protected
If something happens and your clients don’t have adequate P&C protection, their financial goals could be at risk. Those are the goals you helped them set.
*Source: 2018 Oliver Wyman Research."The Overlooked Gap in Financial Advice: How financial advisors can protect clients whose wealth may be at risk due to gaps in Property and Casualty coverage."
**Source: Insurance Research Council
1 in 8
drivers are uninsured**
62%
lacked jewelry insurance entirely*
23%
had heard of employment practices liability insurance and just 6% had purchased the coverage*
70%
have never or rarely had a professional assessment on their home or possessions*
76%
lack flood insurance*
See the Difference
Leak from upstairs bathroom damages Joan Mitchell painting
- Mid 50s living in Weston, MA
- Collectors of post-war and contemporary art
Sued by neighbor after renting land to farmer who over sprays and ruins neighbor’s crops
- Early 60s currently have multiple estates in California and Colorado
- Enjoying retirement after selling their technology company for $300MM in 2015
- Working with a wealth advisor to maximize gifting to their alma mater
Home fire destroys dream of buying secondary home on Deep Creek Lake
- Early 40s living in Bethesda, MD
- Victoria is an orthopedic surgeon and owns a few clinics around the area
- Working with a wealth advisor to put together a plan to buy a $1.5MM lake house in 3 years while still saving for retirement at 65
Money to care for aging mom stolen through malware; disrupts ability to have mom move closer
- Mid-40's currently live in Englewood, CO
- Planning to build a guest house on the property to take care of Vanessa’s aging mom
- Working with a financial planner on goal of having enough money saved to care for aging parent and paying for their children’s college and graduate school
Heavy rainstorm floods home; decreases money in estate for children and grandchildren
- 58 years old currently live in Southlake, TX
- Plan to retire at age 62 and move to Santa Fe, NM
- Would like to grow estate as much as possible
Pipe burst results in water damage to home, delays retirement by 5 years
- Early 60's currently live in Glencoe, IL
- 2 adult children who have left home
- Home is 50% total wealth significantly appreciated in value since they bought
- Want to retire to Florida soon will sell home, downsize and enjoy lower tax rates
Trampoline accident wipes out college savings, children not able to select their first choice private universities
- Early 40's currently live in the suburbs outside Dallas, TX
- Set of twins five years old
- Home has four bedrooms backyard includes a pool and trampoline, popular with their children’s friends
- Want to save for private university education as well as grow retirement savings and pay off house
Car accident and injury puts her life on hold for 3 years
- Early 30's rents a house in downtown Seattle, WA
- Single, successful member of a tech company that recently went public
- Just bought an expensive car and has begun working with an advisor to manage her finances
- Likes to go on hiking trips she drives to nearby national parks frequently in her new car
Helping you get started
Identify, address, and revisit your clients’ P&C risks
Financial advisors who take the extra steps to learn about P&C coverage will deepen their client relationships, expand their book of business by gaining referrals from P&C agents, and broadening their market differentiation. Getting started is simple – just three steps.
Identify
Educate yourself about P&C coverage so you can spot gaps in your clients’ protection.
Address
Develop a network of P&C partners who routinely work with successful families and individuals, and can help your clients as well.
Revisit
Follow up with your clients each year to ensure that they stay protected, even if their lives change.
Did you know?
Did you know?
Since financial advisors typically only manage about two-thirds of their clients’ total wealth, there is a clear opportunity for you to deepen your client relationships. Adding P&C support can do that.
46%
say they would be more satisfied with their financial advisor*
27%
say they would increase the amount of money they invest with their advisor*
41%
say they would lengthen the period of time they keep their investments with that advisor*
46%
say they would be more inclined to recommend that advisor to their friends and family, thus increasing stickiness*
An expanded network
An expanded network
P&C personal insurance brokers typically have a network beyond trust and estate attorneys and CPAs. For example, they have relationships with real estate brokers and art advisors.
Only 42%
of financial advisors surveyed currently have relationships with realtors
Only 16%
of financial advisors have a relationship with art advisors
Did you know?
Did you know?
When you provide P&C support to your clients, you grow the potential number of new referrals.
81% have reported they get 1-5 referrals per year.
18% have reported they get >5 referrals per year.
Checklists
Help isolate the gaps in property and casualty insurance with our easy-to-use checklists.. Perhaps your clients only need to review information for specific areas. We have you covered. Review with them or share to let them assess.
Contact Us
Call us at 877-354-1319 or email financial.advisor@chubb.com for more information or to be connected with an independent agent.