Concentration kills creativityBlog added by Mike McGlothlin CFP®, CLU, ChFC, LUTCF on August 11, 2014
Mike McGlothlin

Mike McGlothlin CFP®, CLU, ChFC, LUTCF

Fort Wayne, IN

Joined: March 06, 2014

If you were to audit your product preferences and carriers, would you find too much concentration in one offering? We spend a considerable amount of time examining our clients' portfolios for concentration risk. Are you doing the same thing for your business?

I am constantly surprised when I meet advisors around the country and discuss their concentration into one product or one carrier. Realizing that our presentations get better with repetition, we tend to stick with our comfort level and what worked most recently. Those factors lead to a routine, which leads to a high concentration in products or services. This concentration kills the creativity used in client solutions, which ultimately hurts our industry's end users.

In the current interest rate environment, carriers have been forced to make changes to benefits, payout structures and income rider values. Today, there are more solutions available to meet the increasing demands of longevity protection. We have a responsibility to search for customized solutions for unique consumer goals and objectives.

See also: 24 most creative people in insurance

It's time that we lose the comfort level for a specific product or carrier. Instead, we need to get comfortable with research, seeking knowledge, and pursuing what best meets our clients’ objectives. I challenge all advisors to rethink their value to their clients. Our value should not be dependent on a product; our value needs to be our intellectual value of searching for the right solutions. Our concentration with one story might erode our value and creativity.
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