Young people want to know

Transparent financial products are on the rise

The internet has changed not only the world around us but also our mindset. When almost all human knowledge is just a tap away on a smartphone, people become more critical of the information and products on offer. Young consumers in particular hardly ever base buying decisions on vague advertising promises any more. They come to advisory meetings well prepared and value intermediaries who put their cards on the table.

Openness builds trust

This trend is also reflected in the representative industry study "Next Gen Insurance 2025" by the agency Youngcom. More than 13,000 participants aged 16 to 35 were asked between May and October 2024, among other things, what quality an insurer must have to win their trust. The analysis also distinguished between 16- to 25-year-olds and 26- to 35-year-olds. The most frequent answer in both groups: transparency and openness. As the chart shows, 16- to 25-year-olds in particular want to know exactly what they have to pay and what they get for it in the end.

Transparency matters to 97% of 16- to 25-year-olds

The survey's authors seem to have been aware of how central the topic is. Later on, they explicitly ask participants once again how important an open cost and benefit structure is to them. That settles it: in this age group, transparency matters to almost everyone, and to most it matters a great deal.

Digital solutions for greater clarity

To build long-term, trusting relationships with your clients, place particular emphasis on open communication and make cost structures clear and easy to follow. Digital features can support and extend the personal interaction between broker and client:

• Provide full information on the effective costs of an insurance policy, such as acquisition and distribution costs, and make clear whether retrocessions from fund providers are passed on to clients. Under its current tariffs, Liechtenstein Life credits these management fee rebates to the policy on a pro-rata basis for many funds.
• Remember that you are not dealing with financial experts. Use plain language and visualise complex matters with (interactive) charts.
• Explain the structure of their portfolio to your clients in detail and show them how to track its performance daily (for example with the Liechtenstein Life customer app).
• Rely on digital solutions wherever possible, so that your clients have central access to all contract and tax documents.
• Make it quick and easy for your clients to get in touch with you, ideally both in person and digitally (for example via the customer app).

Conclusion: transparency pays off for both sides

Insurers that make transparency a core value make it easier for brokers and clients to keep track of products, portfolios and costs. That gives you a good basis for communicating clearly and openly with your clients. Transparency helps you win new clients, build long-term relationships and succeed over time. Because your advice keeps policyholders well informed, they recommend you with a clear conscience and trust you again with their next investment decision.

Article published by Prosperity Solutions AG