Page 50 - Investment Advisor September 2022

WEALTH & RISK

By Ana Robic

How to Strengthen Client Relationships

Generational insights should be used judiciously to open channels of communication.

he Great Wealth Transfer is ACTION STEPS FOR ADVISORS
underway: Over the next 20 Chubb’s research reaffirmed that all gen-
Tyears, as much as $68 trillion erations value being listened to and having
in wealth will be transferred to younger their unique needs understood. Here are
generations. There are already more than some recommendations you can take to
600,000 millennial (born 1981–1996) enhance how you approach and respond
millionaires in the U.S. By 2030, just to clients of different generations:
eight years from now, current estimates • Partner with an independent
indicate that millennials will hold five broker or agent: Younger generations
times as much wealth as they do today. experienced the Great Recession and
During this period of transition, it’s COVID-19 pandemic during their for-
critical to engage thoughtfully across mative years, which may be the source
generations to build successful sales tions during the Great Wealth Transfer. of their increased risk aversion. You can
relationships. With this in mind, Chubb Our research included a survey of more help address this concern—and incor-
recently conducted research to help than 1,100 individuals with annual porate risk management into holistic
independent insurance agents and bro- incomes of $250,000 or higher and wealth planning—by bringing an insur-
kers understand the feelings of successful across all adult generations — from the ance agent or broker into your conversa-
individuals and families about purchas- Silent Generation (born 1928–1945) to tions with clients.
ing insurance based on their generation. Generation Z (born 1997–2012). • Filter information: With older gen-
We believe our research is highly rel- We found notable but often nuanced erations, you can confidently share your
evant for financial advisors as well. differences between generations that expertise and organizational insights.
First, a word of caution: While the can help inform your conversations with With younger clients, help them under-
generational research provides insights clients, prospects and partners, includ- stand and filter the information they are
that are actionable, it’s important to vali- ing insurance brokers and agents. Here accessing online.
date any assumptions with your clients to are a few important differences to be • Be social, online and offline: High-
avoid stereotyping them by generation — aware of that we are able to discern from income individuals value personal connec-
or any other demographic information. survey respondents: tions with agents and brokers — a point that
Chubb’s research shows that there • Risk aversion: Younger generations may apply broadly to financial advisors as
are notable differences between gen- show more risk aversion than older gen- well. For younger generations especially,
erations when it comes to investigating erations and are more concerned about it may be helpful to engage through tech-
financial information, responding to risk protecting themselves from loss. nology. Younger generations often gather
and working with insurance agents and • Sourcing information: When gath- financial information from social media
brokers. Advisors may find that these ering information on insurance and finan- platforms, including YouTube, Instagram,
differences are applicable to their client cial matters, older generations are more Twitter and LinkedIn.
relationships as well. likely to turn first to a professional, such as Intergenerational understanding can
Generational insights should be used an agent or broker, whereas younger gen- build trust and nurture client relation-
judiciously — as a tool to open channels erations are more likely to search online. ships for all sales professionals. Partnering
of communication and guide conversa- • Social media use: Compared to older with insurance agents and brokers can
tions, but not as a substitute for deeply generations, younger generations place also help you respond to different genera-
understanding someone’s specific goals, greater value on social media reviews of tions’ feelings about managing risk and
needs and concerns. insurance agents. For instance, 73% of protecting their wealth.
Chubb partnered with generational millennials vs. 44% of baby boomers (born
researchers to better understand the 1946–1964) read social media reviews of Ana Robic is division president, North America
challenges and opportunities of working agents before using them. This finding Personal Risk Services, Chubb. She can be Adobe Stock
with successful clients across genera- may also apply to financial advisors. reached at [email protected].

46 INVESTMENT ADVISOR SEPTEMBER 2022 | ThinkAdvisor.com