Although 81 percent of agents report that their clients do not have a good understanding of their fiduciary exposures, 65 percent said they were comfortable talking about fiduciary needs with clients, according to a Travelers Enterprise Market Research survey.
The study revealed that a small number of clients are initiating a discussion with agents about fiduciary exposure. Only 17 percent of the independent insurance agency respondents said their clients were concerned about fiduciary liability. However, almost half (46 percent) said they are providing quotes; and 48 percent of those agents said they have clients make the purchases.
Researchers also found that agents (68 percent) believe their clients’ top reason for purchasing fiduciary benefits is to cover the cost for defending a claim, while an additional 25 percent indicated it is the second or third most important factor. The survey also reported:
• Agents were asked what reasons they hear from their clients for not wanting to purchase fiduciary liability, and 39 percent (with an additional 40 percent ranking as a top 2 or 3 choice) ranked "Don’t feel like there is an exposure."
• Respondents listed more examples of how customers can protect themselves from a fiduciary claim as the most helpful tool from carriers, with 33 percent reporting that as the main choice and an additional 39 percent ranking those examples as a top 2 or 3 choice.