Succession Planning: A Consumer Perspective

Consumers expect their financial professionals to practice what they preach, and that expectation extends to succession planning.

Laura Murach, LIMRA associate research director, will discuss succession planning from a consumer’s perspective during a session today at the LIMRA Distribution Conference.

The combination of an aging advisor force and the implications of the Department of Labor fiduciary rule means that succession planning is a hot topic in the financial services industry.

And consumers are looking to their financial professionals to “have their ducks in a row” when it comes to planning their exit from the business.

“Consumers believe their financial professionals have succession plans in place and we found from our research that most of them don’t,” Murach said.

Murach said she will discuss what consumers believe is happening with their own advisors’ succession plans. Also during the workshop, James Wong, president of Partners Advantage Insurance Services, will discuss succession planning from the independent marketing organization and brokerage general agency point of view.

It is crucial to maintain client trust throughout the succession planning process, Murach said.

“Financial professionals work really hard to gain clients’ trust. Trust is the foundation of that relationship,” she said. “And trust should be there even after the financial professional leaves the practice.”

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].

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