For many insurance producers fees can cause the loss of a sale. But there are exceptions to every rule.
In the insurance industry, wirehouses are that exception.
According to a study by Cerulli Associates, 36 percent of clients of dually registered advisors and independent broker-dealers left last year because of fees they felt were too high, in comparison to just 5 percent for wirehouses.
There are several reasons that clients are more loyal to wirehouses:
- The niche specialization provides a reason for the fees
- Clients value the expertise for the vast financial assets they possess
- Wealthier clientele are the target of wirehouses’ services
As an advisor in a wirehouse it is important to capitalize on these market advantages in order to continue to grow the client base and create a solid foundation and a sustainable future for the practice.
This means retention is of utmost importance, and the continued growth of what you can offer your clients is imperative.
Wirehouses have the opportunity to keep more of their clients’ assets in house by investing time into protecting their families and business with life insurance. This is easily done, without having to do as much work, by using an experience life insurance broker, like Tennessee Brokerage Agency, that works in the wirehouse space.
With a plethora of products that can enhance the overall value of a client’s financial portfolio, you create added value for them while improving your client retention simultaneously.