Private Client Services by Mercer
Embracing the new normal amidst COVID-19
In a recent article published by Oliver Wyman on ‘The Post-COVID Opportunity for Banks’, it was reported that contracting economic activity, growing loan provisions and expense increases for additional customer support and resilience requirements are already taking a toll on bottom lines. These headwinds exacerbate existing commercial challenges for financial institutions, from low interest rates to stiffer competition from market disruptors. Taking all these factors into consideration, defining how firms can find growth, efficiency and resilience will be at the heart of rethinking a ‘New Normal’.
The global pandemic has also significantly awakened one’s awareness on both wealth management and health care coverage. This is a critical time to address the role of life insurance in your clients’ wealth management plans, to analyze the suitability of existing policies, to adopt additional coverage if needed, and to explore liquidity options for clients who need cash immediately to weather the current storm^.
^ https://www.fa-mag.com/news/addressing-life-insurance-uses-and-needs-amid-covid-19-56102.html?section=3 (best viewed on Chrome)
With more than 50%* of the world in lockdown of various forms, the COVID-19 pandemic has brought an unprecedented halt to normal life. Whilst there are opportunities emerging, the crisis is also making change mandatory. With social distancing and travel restrictions in place, clients are unable to travel overseas for their medical examination.
In response to these challenges, Private Client Services by Mercer has helped our clients pave the way for the new normal.
As a case-in-point, we recently helped one of our existing clients, a family of 3 aged between 29-60 years, to place three Whole of Life (WOL) policies with their medical examination done onshore in Bangkok amidst the COVID-19 pandemic and travel restrictions.
PCS by Mercer Solutions
Instead of the usual face-to-face meetings, our PCS by Mercer consultant conducted an annual policy review with the clients over a video conferencing platform.
Upon reviewing the clients’ current portfolio and needs:
The smooth virtual process led to the successful closure of three WOL policies, with total Sum Assured of USD 17.1 Million and a total premium of USD 5.06 Million.
Key success factors and takeaways