Skip to content

Financial Advisors: Is Your Value Proposition Missing This Key Element?

Written by Erika Marino on

The financial advisory industry is competitive and crowded, which can make it difficult to stand out. To differentiate yourself from the competition, you need a value proposition that compels clients to seek out your services and partner with you as their trusted guide.

Increasingly, successful financial advisors find that integrating property and casualty (P&C) insurance advice into a comprehensive financial plan proves a great way to set themselves apart and provide a better client service experience.

Why Insurance is Part of a Holistic Plan

Financial advisors are like a football team’s quarterback: When it comes to caring for your clients’ financial wellbeing, you need to see the whole picture and coordinate with the various players that can contribute to an effective, holistic financial plan.

When a client entrusts you as the advisor that helps them achieve their personal goals, they expect you to look at the entirety of their financial situation. They want you to make recommendations that go beyond investments and aren’t limited to what you can offer in-house. They also expect solutions customized to their unique situation, designed to achieve their specific objectives.

Risk mitigation and management are integral to any client’s financial plan, especially those with significant assets. The ability to reduce risk with the proper personal insurance coverage can make a big difference in ensuring your client is protected. Yet, as important as insurance is to financial wellbeing, some advisors fail to factor insurance needs into a comprehensive financial plan. That’s a mistake, for both the advisor and the client.

Demonstrating Value While Reducing Risk

When financial advisors overlook personal property insurance in a client’s financial plan, they miss the opportunity to demonstrate value and to avoid exposing the client’s personal assets to risk.

For example, individuals and families with substantial assets often lack the umbrella liability coverage needed to protect those assets from lawsuits. That can happen if an insurance agent doesn’t ask the right questions when writing other policies (such as auto or homeowner) or if the financial advisor doesn’t include risk management in the overall financial plan.

Failing to insure high-value properties and other assets sufficiently is another pitfall that is more likely when insurance is not evaluated during the financial planning process. If the client doesn’t insure their primary home, vacation home, or other property at guaranteed replacement cost, they could face higher out-of-pocket costs in the event of a loss. Underinsuring autos and other vehicles or failing to bundle policies that could qualify for multi-policy discounts also can prove costly if the unexpected happens, negating any premium savings.

When It’s Time to Tap an Insurance Specialist

In the process of conducting a high-level needs analysis for a new client, there are red flags that signal it may be time to consult with a private insurance advisor. For example:

  • The client has significant assets (both investments and properties) but doesn’t carry umbrella liability insurance or the current limit is far short of their net worth.
  • The client purchases their policies directly from an insurance carrier or uses a captive agent (one who only represents a single insurance company).
  • The client has policies spread across multiple carriers, missing an opportunity to save by bundling.
  • The client has had the same insurance policies in place for many years, increasing the odds that their coverage is not up to date.

By partnering with a private insurance advisor—vs. only working directly with an insurance carrier or broker—you can provide greater value to your clients by helping them address issues like these. Rather than simply recommend that clients find an insurance advisor to round out their financial plan, you can connect them with a resource you know that has relevant experience, a proven service model, and a client base that aligns with your client’s profile.

The Value of Partnering with B. F. Saul Insurance

As private insurance advisors, the P&C experts at B. F. Saul Insurance team up with leading financial advisors to help them deliver greater value to their clients. We serve as an extension of your advisory practice, orchestrating a risk management plan that includes P&C insurance as a key strategy.

If you spot common risk management red flags as you delve into your client’s financial situation and goals, you can introduce B. F. Saul Insurance as your partner in ensuring the financial plan covers every aspect of the client’s financial life. Our P&C experts work closely with your client to understand their risks and customize a practical solution to mitigate them.

The industry’s top financial advisors team up with B. F. Saul Insurance because:

  • We have been in the personal insurance lines business for more than 100 years (so we are experienced).
  • We are independently owned (so we are objective).
  • We only work with a select number of clients (so we can provide the time and attention every client deserves).

Ensuring you consider risk management and P&C insurance when developing a holistic financial plan may be just the way to strengthen your value proposition and differentiate your practice. Contact us to learn how our experienced P&C team can serve as an extension of your advisory practice and help protect your clients’ valued assets.

Download This Blog as a PDF
Related Resources

Download "The State of the Personal Insurance Market" Whitepaper

About The Author

As Vice President, Personal Lines, Erika Marino leads business development efforts for B. F. Saul Insurance’s private client group and oversees the management of client relationships and sourcing of new accounts. She started her career in wealth management, working for Morgan Stanley as a financial advisor before she made the switch to insurance in 2018 when she joined B. F. Saul.

LinkedIn | Full Bio

Any advice, information, data, communication, proposal and/or document transmitted to you in or in connection with this blog (including, without limitation, any past or future written or oral communications in connection with this blog or its subject matter, and any replies to or forwarded messages in connection with this blog) (collectively, this “Communication”) shall not be deemed legal advice and are not a substitute for the guidance of your legal, tax, financial or other professional advisors. The information contained in this Communication is based on the information made known to B.F. Saul Insurance, Inc. (“BFSI”), at the time this Communication is transmitted to you. If any of the information provided to or relied on by BFSI is inaccurate or changes before insurance coverage is bound then the terms and conditions, premiums, or even availability of such coverage may be subject to change. This Communication does not constitute a contract for insurance and, the terms and conditions of any current or future policy(ies) of insurance shall supersede and prevail over this Communication. This Communication and any information disclosed to you in connection with this Communication at any time (whether orally or in writing) are provided to you in confidence, are the proprietary and confidential information of BFSI, and shall not be disclosed to any third party (except to legal, tax, financial or other professional advisors for the sole purpose of enabling and only to the extent necessary to enable them to provide their services to you in such capacity(ies)), reproduced or used for any other purpose without the express written consent of BFSI.

All requests to place, change or terminate coverage must be confirmed in writing and are subject to the terms and conditions of your insurance policy(ies). Coverage shall not be considered and cannot be bound, changed or terminated unless you have received written confirmation of such from a licensed agent pursuant to the terms and conditions of your insurance policy(ies).