5 Ways an Outsourced Insurance Desk Can Boost Recruiting for RIAs
What You Need to Know
Your firm could do everything.
You could also buy services from outside companies.
An OID provider makes the case that easier can be better.
The joint RetireOne and Midland National 2022 RIA PARI Survey recently revealed that 37% of RIAs don’t offer insurance.
This translates to nearly four in 10 advisors being unable to deliver truly comprehensive financial planning services to their clients.
However, it’s becoming increasingly apparent that the future of financial advice is holistic in nature.
That’s where an outsourced insurance desk, or OID, can be an asset to the firm, supporting its advisors’ abilities to deliver zero-commission annuities and insurance solutions that are best suited to clients’ needs.
If you own or help run an RIA, here are five ways an OID can boost your recruiting.
1. You can offer more comprehensive financial planning services.
By partnering with an OID, advisors can provide comprehensive and holistic financial planning services, including insurance and annuities, without requiring a license or additional resources.
By providing a wide range of product offerings, like annuities and life insurance, advisors can offer a more comprehensive suite of options to clients.
This can make an RIA firm particularly attractive to advisors who want to offer such a range of products, but lack the insurance license or FINRA registration to do so.
2. You can increase revenue potential.
According to Dimensional’s 2021 Global Advisor and Investor studies, firms that offer annuity and insurance solutions enjoy more growth in their assets under management (AUM), more revenue, and onboard higher-AUM clients than their competitors.
By offering insurance products, RIA firms can generate additional revenue streams that can help to boost their bottom line.
This can be an attractive proposition for advisors who are looking to increase their earnings potential and grow their business.
3. You can improve compliance support.
Advisors transitioning from the commission model to the fee-based model must often weigh whether the insurance solutions they stand to leave behind are worth the additional compliance rigor they must contend with.
A robust outsourced insurance desk can help ensure that all insurance-related activities are fully compliant with industry regulations.
This can be an attractive proposition for advisors who are looking for support in navigating complex regulatory environments.
4. You can provide more efficient processes.
An OID provides ongoing services and support for all client policies, handles everything needed to meet suitability standards, and complies with the SEC’s Regulation Best Interest rule.
