According to financial planners presenting at the Accounting Today Growth & Profitability Summit in Las Vegas last week, your accountant should probably be selling you insurance in addition to doing your taxes[1]. More than half of clients surveyed (52.6 percent) said that they would prefer to purchase their insurance through their certified public accountant (CPA) than through an insurance broker or other provider. Why? “Trust,” said Louie Rosalez, chief marketing officer and chief insurance officer at Honkamp Krueger Financial Services. “They [clients] want [and] need your help,” he added.
In order to successfully add insurance to the roster in an accounting firm, however, a company needs an individual who is “not afraid of the word ‘sell’,” said BAM Advisor Services CEO Mont Levy, who also recommends rewards for referrals that lead to successful sales. Venturing into the insurance business is not for the faint of heart, however, and requires a great deal of additional record-keeping and documentation, say CPAs already in the business. This is necessary in order to maintain trust with a client and to protect CPAs in the event that the relationship sours.
This time of year is ideal for entering into the insurance business since people are starting to think about their taxes and moving into the phase where any last-minute moves to increase deductions have to happen fast. Understanding how different types of insurance affect tax liability enables accountants to uniquely advise their clients in this regard.
Do you think that your accountant would be a good person advise you about insurance? Would they do so if you asked?
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[1] http://www.bankinvestmentconsultant.com/news/cpas-financial-planning-services-2675821-1.html
