Tomorrows World Richard Howells UK Intermediary Sales Director
- Slides: 11
Tomorrow’s World Richard Howells UK Intermediary Sales Director, Zurich
Some Good News Demographic and economic conditions mean that there is more need for advice – Morbidity and Mortality shifts mean assets/income need to be protected for longer Consumer research also demonstrates that consumers understand that they must move to a different way of managing their long term finances – there is greater realisation that returns don’t come without risks Trust is paramount for future consumers following the global financial crisis – Cap Gemini & Nottingham University demonstrates that trust in Financial Advisers has been largely unaffected
What Consumers want ? • To understand what they are buying • Confidence in product, provider and adviser • Value for money • Trusted research via the internet • Personal interaction for ‘complex’ advice • Peace of mind • Reward for loyalty • Relationship built on trust Source – E & Y Global Insurance Study
Trust in Wealth Management Trust High Low Civil duty saver Convenience driven investor Uninterested bystander Cost aware investor Involvement Source – Finland Financial Services High
Professor Merlin Stone “ Richard, understanding why customers want to buy in the future and what’s important to them, other than the purchased item itself, offers sellers the opportunity to unlock new business, reduce competitive pressure and diminish price consciousness “
Pure Future Consumer Buying Behaviours Anarconimism Brandstanding Intuitive Futures Conviviality Culture
Some final thoughts Should we segment by financial value as opposed to future buying preferences. In essence, why not segment by the reason they buy from you as opposed to the financial value they bring ? Don’t educate your customers !!! – it gives them competencies they don’t have and only helps them destroy wealth more successfully than they ever have. Key future complaints risk – information processing vulnerability Guiding the decision maker – the Americans are thinking again ! Did they smoke to much dope in the 60’s ? They …… • Underestimate retirement living costs • Have no idea of how long they will live • Over estimate their ability to earn in retirement • Fail to face the probability of ill health
Some final thoughts ‘Life is brutal, disappointing and short or long and painful. Without planning it’s going to be worse than that!’ Professor Merlin Stone
