Friends Provident International today released a report highlighting the results of their latest Investor Attitudes survey for Q2 2012 (survey period from 23rd April to 7th May). The survey's results highlight the importance of having knowledgeable financial advisors in the Singapore insurance and financial services industry. When respondents were asked what the most important factors were when choosing a financial adviser, offering the right products and services and sound financial knowledge were the most highly-ranked factors.
Source: Singapore Business Review
Comment: "The fact that customers are willing to pay for financial advice, no matter what it costs, according to the Friend's Provident survey results, is a somewhat surprising finding. I personally find it hard to believe that any customer would say that, unless they believe that the cost will end up being very affordable. The life insurance association released their own survey results earlier this year. It highlighted something quite similar: the majority of customers believe that insurance agents compensation was fair in their view. However, when asked about the knowledge of the exact compensation the customers were less certain and just assumed that it magically paid for itself somehow.
If a real number is quoted to a customer and at the same time they are asked if they feel comfortable paying it, the results might be quite different. Ex. you are buying a $5,000 regular premium savings plan, would you feel comfortable paying your advisor $2,750 to buy it? hmmm is that really a zero at the end of the figure?
