BUSINESS MODELS
Leverage and collaboration:
It’s a game changer
Almost 9 in 10 of the
independent insurance
advisors surveyed
refer, partner, or
collaborate with other
professionals within or
outside of their office.
It is critical that carriers, intermediaries, and other organizations that support independent
insurance advisors recognize how these advisors are evolving their practices to adapt to today’s
changing marketplace. One way that advisors are changing their practices is through leverage
and collaboration. In other words, advisors are not only relying more on staff support and
advanced support professionals, but many are teaming with other sales professionals, either
formally or informally. The emergence of these practice models have implications for how
organizations partner with independent insurance advisors and provide the support they need.
LIMRA recently surveyed almost 500 financial professionals — 250 of whom are
independent—to explore how leverage and collaboration are changing their practices.
A new game
Today’s consumer is looking for a different type of relationship with their advisors than they
have in the past. LIMRA research conducted earlier this year shows that most consumers do
not want to work with separate advisors to address individual needs. Instead, they prefer
working with a single financial professional who can address a majority of their needs, or a
collaborative approach (Figure 1).
FIGURE 1: Preferred client-advisor relationships
Patrick T. Leary, M.B.A., LLIF
Corporate Vice President,
Distribution Research, LIMRA
Patrick Leary leads LIMRA’s
Distribution Research program,
which focuses on the economics
of distribution, organizational
practices, and market trends. Leary
earned his bachelor’s degree from
Hartwick College and his M.B.A. from
the University of Connecticut. For
more information, please contact
[email protected]
59 % 31 % 10 %
A single financial
professional who could
address a majority
of insurance and
investment needs
Source: LIMRA (unpublished consumer data), January 2020.
A single financial
professional who could
refer, partner,
or team
More than one
financial professional,
each of whom
addresss a
specific need
As a result, many advisors — not just independent insurance advisors — are stepping back
and re-evaluating their practices and the value proposition they provide to their clients. They
have expanded their product offerings to better meet client needs.
16 Perspectives Q3 2020