At the same time as retirement angst grows for older generations, a raft of studies over the past year have shown that younger generations, such as Generation Z and millennials, are more tuned in to their financial well-being and eventual retirement than earlier generations are.
These young adults are thinking about savings and retirement from earlier ages and are starting investment funds sooner than most of the older generations did. They understand that time is on their side, and they are taking advantage of that, even if they have only a small amount to invest at the present time.
These generations also represent a great opportunity for advisors, especially as most studies have shown the majority of these younger investors are seeking human counsel, even as they rely on apps and social media for much of their financial information.
The recognition that younger generations are solidly ensconced in social media — and are often more comfortable using apps and texting than they are talking on the phone — provides key guidance for advisors who seek to build their client base. Connecting on social media is essential to a successful practice today. As with all social media, providing insights and expertise along with revealing something of yourself is essential so that a true human connection can be made between advisor and prospective clients.
Investing in daily posting, sharing expertise on appropriate platforms such as LinkedIn — or even TikTok — and making short videos on key financial topics are some of the pathways to building these connections.
Inflating car insurance and a stormy P/C landscape
The Consumer Price Index saw its largest increase in 40 years in June when it increased a staggering 9.1%. That, along with supply chain issues and the return of commuter traffic to near-normal levels following the declines during the height of COVID-19, has had an impact on car insurance. Forbes reported in Nov. 2022 that the American Property Casualty Insurance Association found that insurance claim costs had been rising faster than the CPI and outpacing increases by car insurance companies.
Drivers are expected to see significant rate increases when their policies come up for renewal or they shop for car insurance. As part of this equation, repair costs are expected to continue to rise as well, as original equipment manufacturer parts are harder to find and causing delays in repairs.
As with many other sectors in the economy, when these factors will abate is anybody’s guess, and their growing impact is sure to be felt until some cooling down takes place.
Some of those same factors, along with the ever-increasing severity of natural catastrophes including hurricanes, tornadoes and even severe hailstorms, are also throwing a wrench into the reinsurance market. Along with increased storms and damage, higher home valuations are playing a role. Florida and Louisiana are particularly hard-hit, but watch for this trend to grow and impact more of the country’s susceptible geography.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.