May 2021 Issue: Adding Value Through Property & Casualty Insurance Reviews-Adding Value Through Property & Casualty Insurance Reviews by Susan Chesney

Adding Value Through Property & Casualty Insurance Reviews by Susan Chesney

Pdf Summary

The document discusses the challenges faced by financial service providers in the face of increasing commoditization and pricing pressures. It highlights the shrinking advantage of NAPFA members, who focus on financial planning, as asset gatherers add financial planning to their offerings. One area that is often overlooked in financial planning is a review of property and casualty (P&C) insurance coverage. The document cites a survey that shows only 28% of advisors address P&C needs, despite over 75% of financially successful individuals wanting it included in the services offered. P&C reviews can provide great value to clients as they often reveal problems such as inappropriate deductibles, coverage, and insurers. Clients with high net worth can be found carrying low deductibles and low liability coverage amounts. The document also points out that clients often continue their relationship with mass-market insurance providers without considering higher-end insurance agencies that offer better coverage and customer service. The advisory relationship can add significant value by helping clients identify areas of risk in P&C insurance and avoiding large financial losses due to unfortunate or catastrophic events. The document encourages advisors to familiarize themselves with this area of insurance.

Keywords

financial service providers

commoditization

pricing pressures

NAPFA members

financial planning

asset gatherers

property and casualty insurance

P&C needs

insurance coverage

advisory relationship