Hey insurers: No robo-advisors here

Seven in 10 HWNIs prefer personal service amidst digitalisation.

A survey by Transamerica Life Bermuda found 75% of clients who favour insurance-related solutions tend to be moderate or moderately conservative in their risk tolerance, which has seen demand for life insurance as a low-risk wealth management tool rise. Notably, almost two of three wealth managers surveyed say that childbirth or succession planning is the key trigger event most likely to lead to a conversation about life insurance.

This is followed closely by family death or serious medical issues, and significant changes in business ownership. Amongst the three most important criteria that clients look out for when selecting a life insurance provider, product pricing emerged top (73%), followed closely by financial strength (67%) and brand reputation or heritage (56%). Two out of these three factors are trust-based.

Growth stimulators
The survey also revealed that the most significant factors stimulating growth of life insurance across private banks include the need for client estate, legacy planning and health coverage (36%) and increased relationship manager education (30%). On the other hand, the most significant factors that inhibit growth of life insurance across private banks include unsuitable product terms and pricing (37%), and lack of client or relationship manager understanding (28%).

HWNIs also prefer personal service in spite of the trend of digitalisation. Out of the 455 respondents surveyed, a large majority (73%) indicated that their clients prefer to communicate with a relationship manager or private bank, and mostly prefer via phone.