It's simpler to bring in new clients by improving service for current clients than using resources to prospect, writes Bryce Sanders of Perceptive Business Solutions. He recommends that advisors conduct face-to-face relationship reviews with clients and offers a step-by-step approach that can lead to referrals.
A survey by Northwestern Mutual found that 67% of Americans getting help from a financial advisor are confident about their spending today and what they should save for the future. Among consumers without an advisor, the figure was only 44%.
A federal judge has dismissed a lawsuit filed by a coalition of states against the Trump administration over its decision to halt cost-sharing reduction payments to health insurers as required by the Affordable Care Act. The states had asked the court to stay the proceedings in case the administration moves to ban silver-loading, which involves concentrating premium increases on certain plans, in the ACA exchanges.
Potential US tariffs of 25% on imported auto parts could drive personal auto insurance premiums up by 2.7%, or $3.4 billion a year, PCI and other insurance industry groups said in joint comments to the Commerce Department. The groups also said that "[m]otor vehicle theft rates could well rise, as many stolen vehicles are sold for their parts."
The National Flood Insurance Program is set to expire at the end of this month, and Congress has not agreed on whether to revamp the program for solvency's sake before reauthorizing it. PCI's Nat Wienecke said "it's inconceivable for there to be a lapse in the program in the middle of hurricane season" and that policyholders likely would erroneously view their agents as being accountable if the NFIP lapses.
The impact of Hurricanes Harvey, Irma and Maria illustrated the problem of underinsured US homes and a lack of flood coverage, according to governmental agencies and trade groups. In addition, a survey found that two-thirds of people affected by October's Northern California wildfires said their policies would not cover all the expenses of rebuilding their residences.
A wildfire in northern Oregon has burned at least 45,000 acres, left one person dead and forced evacuations, and Gov. Kate Brown has deemed the fire a conflagration, authorizing the use of additional firefighting resources. Near Yosemite National Park, in California, two firefighters have been injured while battling a wildfire during which a heavy-equipment operator died when his bulldozer overturned on Saturday.
Laboratory Corporation of America Holdings said in a filing with the Securities and Exchange Commission that the company might have experienced a data breach during the weekend of July 14. "At this time, there is no evidence of unauthorized transfer or misuse of data," and LabCorp had substantially resumed its testing by Monday, the filing said.
The Transportation Department's Inspector General says in a report that the National Highway Traffic Safety Administration might have hindered recalls of Takata air-bag inflators by not acting promptly on a 2013 consumer complaint. The report said NHTSA did not ensure adequate monitoring of repairs or recall size, and it recommends that NHTSA take steps including possible enforcement actions for manufacturers who fail to adhere to recall rules.
The Massachusetts House and Senate have approved a bill that would add a $2 fee on car rentals in the state to fund police training, a method modeled after the state's assessment on property/casualty insurers to fund fire services. PCI's Frank O'Brien has said there is a "demonstrated need" to fund the training, but the cost "gets hidden" as it is spread among insurance customers.