Life insurance agent—or advisor? Brian DeMaster highlights the difference, and why a holistic, advice-based model can help improve life insurers’ profitability.
One of the more interesting findings of the Accenture North American Insurance Financial Advisers Study is that an increasing number of life insurance agents describe themselves as taking on an advisory role. The difference is subtle, but important. Agents adopt a transactional role within the sale of a life insurance product, whereas advisers guide their clients through the process—and often, provide expertise outside of traditional life insurance products to include broader financial planning tools.
Importantly, advisers that have an equal focus on insurance and advice report higher Assets Under Management (AUM) than those that do not. As my colleague Patrick Lyons explains in this podcast, leading with advice can pay off.
This research shows that providing holistic, advice-led service isn’t just a way to better meet customer expectations—it can also help insurers improve profitability.