3 Steps to Better Client Relationships

The Great Wealth Transfer is underway: Over the next 20 years, as much as $68 trillion in wealth will be transferred to younger generations. There are already more than 600,000 millennial (born 1981-1996) millionaires in the US By 2030, just eight years from now, current estimates indicate that millennials will hold five times as much wealth as they do today.

During this period of transition, it’s critical to engage thoughtfully across generations to build successful sales relationships. With this in mind, Chubb recently conducted research to help independent insurance agents and brokers understand the feelings of successful individuals and families about purchasing insurance based on their generation.

We believe our research is highly relevant for financial advisors as well. Generational insights can help you forge new connections and win clients, whether you’re an advisor, wealth manager, agent or broker.

Avoid Stereotyping

First, a word of caution: While the generational research provides insights that are actionable, it’s important to validate any assumptions with your clients to avoid stereotyping them by generation — or any other demographic information.

Chubb’s research shows that there are notable differences between generations when it comes to investigating financial information, responding to risk and working with insurance agents and brokers. Advisors may find that these differences are applicable to their client relationships as well.

Generational insights should be used judiciously — as a tool to open channels of communication and guide conversations, but not as a substitute for deeply understanding someone’s specific goals, needs and concerns.

High-Income Clients

Chubb partnered with generational researchers to better understand the challenges and opportunities of working with successful clients across generations during the Great Wealth Transfer.

Our research included a survey of more than 1,100 individuals with annual incomes of $250,000 or higher and across all adult generations — from the Silent Generation (born 1928-1945) to Generation Z (born 1997-2012).

We found notable but often nuanced differences between generations that can help inform your conversations with clients, prospects and partners, including insurance brokers and agents. Here are a few important differences to be aware of that we are able to discern from survey respondents:

Risk aversion: Younger generations show more risk aversion than older generations and are more concerned about protecting themselves from loss.

Sourcing information: When gathering information on insurance and financial matters, older generations are more likely to turn first to a professional, such as an agent or broker, whereas younger generations are more likely to search online.

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