Driving growth, profit and success in your business is all-consuming, leaving little time to focus on optimizing your wealth to secure your own financial future.
4 Questions with Vice Chairman, Ron McGann
1. How is the insurance industry evolving and taking advantage of technology innovations?
Over the past decade, technology has paved the way for breakthrough improvements both in life and the property and casualty (P&C) insurance industries. Recent innovation has made various operations more efficient. One example is the streamlining of information to reduce turnaround times when acquiring customers’ health records and processing insurance claims. Technology enhancements also improve the overall experience for consumers, enabling them to make more informed decisions on the types of policies that best meet their needs.
If history is any indicator of success, we can use the parallels between the financial services and insurance industries. In the same way that the evolution of fintech afforded financial services greater efficiencies and processes, that same technological innovation is now present in the life and P&C insurance spaces. Furthermore, insurance companies are keenly aware of the demand to keep pace with digital advancements, and the companies that allocate resources to innovation are best positioned to succeed.
2. Where are you seeing the most growth in the space?
Growth can be seen through consolidation in the insurance brokerage space, which has occurred at a rapid pace. Smaller insurance brokerage companies have merged together to offer better policy pricing for clients. Also, larger insurance brokerage companies have been acquiring small and medium-sized insurance companies to enhance and develop their growth initiatives. On the carrier side, both life and P&C have been growing slowly and in line with inflation. Given the current markets, increasing interest rates have benefited the insurance industry because insurance companies are deploying and investing capital at higher rates.
3. How are J.P. Morgan’s capabilities equipped to help serve insurance executives and their growing wealth management needs?
Insurance executives build their careers managing risk and protecting others, so it can be understood that many of the industry’s executives have limited capacity when it comes to managing their personal finances and wealth management plans. Consequentially, insurance executives may miss out on opportunities to leverage sophisticated trust and estate strategies, and may overlook the important practice of revisiting their financial goals to re-evaluate the required steps to optimize their wealth. From managing liquidity and concentration risk to navigating M&A and IPO activity, J.P. Morgan Private Bank’s extensive experience with insurance industry leaders allows us to guide clients through the complex decisions necessary to develop a wealth management plan suitable for each family’s financial goals. Our knowledge and experience in the space enable us to provide tailored wealth management services to insurance executives.
4. Tell us about the firm’s approach and how it sets it apart from others.
As a global institution with several business lines, advisors at J.P. Morgan are able to leverage the firm’s scale and experience to provide clients with tailored guidance and opportunities across the financial services industry. Clients can leverage the Private Bank’s resources as well as access multiple lines of business, including, but not limited to, the Corporate & Investment Bank, Asset Management and the Commercial Bank. Utilizing a cross-line-of-business approach provides J.P. Morgan Private Bank clients with sophisticated strategies for their personal balance sheets along with any existing business ventures.
Whether insurance executives have roles within private or public companies, J.P. Morgan Private Bank is in a unique position to provide guidance for wealth management plans. Working alongside clients, advisors review public and private ownership structures and executive compensation plans to ultimately provide some of the best opportunities for wealth creation and generation. A client of the Private Bank will experience the breadth and depth of guidance that J.P. Morgan has provided to thousands of families for over two hundred years.