Investment Executive | Defining top advisors
Top 20% of advisors have four times the AUM of rest of sector.
It might appear on the surface that not much has changed within the overall population of insurance advisors over the past year. However, this year, Investment Executive (IE) dug beneath the surface to get a better look at what separates top advisors from the rest of the pack in the insurance sector.
Regarding basic demographic characteristics, the average advisor that IE surveyed for the 2013 Insurance Advisors’ Report Card looks almost entirely unchanged from a year ago. In the past couple of surveys, the average advisor has reported being about 50 years old with about 18.5 years of experience in the sector and 11 years at his or her current firm.
Even the assets under management (AUM) reported by the average advisor were essentially unchanged at $16.9 million. Of course, investment AUM is not nearly as important to insurance advisors as it is to the other advisory populations that IE surveys. For advisors with brokerage firms, mutual fund dealers and even deposit-taking institutions, AUM is king; but for insurance advisors, AUM is secondary to their core business.