Understanding Agents a Key to Distribution Success

PONTE VEDRA, Fla. -- The key to understanding the future of distribution is understanding what the advisor is thinking and doing.

With that in mind, Patrick Leary, corporate vice president at LIMRA, is forever studying the changing advisor practice models -- from independent agents to broker/dealer reps to registered investment advisors.

Leary's current study is being done in conjunction with Ernst & Young and nearing completion. It looks at client base, business economic, digital use and really everything else, Leary said.

While the study is still in "data collection mode," Leary will share some insights with the audience at today's LIMRA 2018 Distribution Conference for Financial Services.

"For those that are operating in current channels, it's really giving them a better understanding of how advisors are evolving their practices," Leary said. "By understanding that, you can really connect with them and offer the services and support they need to grow."

With so many factors -- ranging from fee compression to regulation to an aging advisor force -- destabilizing the distribution channel, many carriers are exploring new means of distribution, Leary explained.

For example, companies who have long used a direct sales force might be looking at the independent agent route.

"What we want to do is to identify -- OK, what does it take for a company who might be in a traditional career agency system, or a traditional wirehouse, or distribution through a wirehouse channel, how are those advisors different from what they’re used to?" Leary said.

So far, the researchers have surveyed about 1,200 agents and hope to get 1,400 for a comprehensive study. Three issues of primary focus include: regulation impact, use of digital technology, and reaching better-educated consumers.

"We have a more empowered consumer, much more digital savvy and much more willing to be self-directed," Leary said. "So really, how do advisors engage with a more knowledgeable client base?"

Advisors are no longer just a source of information, he added. Their role is changing in a very significant way.

"Most consumers can go out and educate themselves about a lot of things," Leary said. "It’s really about helping consumers sort through all that information that they gather and providing a level of advice to help them make the right call as to what products and services are right for them."

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected].

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