NFP Publishes Aite Group Study on Capturing Personal Wealth Management Business of C-Suite Executives by Leveraging Corporate Benefits Relationships

Explores Best Practices for Acquiring High Net Worth Corporate and Business Owner Clients

Oct 01, 2013, 08:30 ET from NFP

NEW YORK, Oct. 1, 2013 /PRNewswire/ -- NFP, a leading provider of benefits, insurance and wealth management services, published today the results of a study on the benefits to financial advisors of providing corporate services and executive benefits as part of their offering to C-suite executives. The study found that advisors are better able to win the trust of executives and the right to manage their personal wealth by extending their value proposition to include the ability to serve corporate and business needs. The study, commissioned by NFP Advisor Services Group and produced by leading independent research firm Aite Group, revealed that advisors who provide corporate services as part of their overall offering are among the most profitable practices.

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James Poer, president of NFP Advisor Services Group, said, "C-suite executives and business owners are looking to financial advisors for more than just personal wealth management. However, most advisors aren't effectively engaging these types of clients or satisfying the breadth of their needs. Through this study, we learned that financial advisors can win the business of this lucrative client and capture more revenue."

Joseph Carpenter, president of NFP Executive Benefits, said, "Many advisors are overlooking a significant opportunity in executive benefits to build the most profitable practices. Employers, large or small, need subject matter experts to help navigate the executive benefit complexities many corporations and business owners are faced with in this ever-changing regulatory and tax environment. Finding an advisor who can help solve these challenges for their clients creates a unique marketplace differentiation that benefits both the client and the advisor well beyond the immediate needs for corporate benefit solutions." The study found that while only 5% of advisors surveyed provide corporate services as part of their standard offerings, potential and current clients quickly recognize the value proposition of a more comprehensive offering.  Leading with a discussion of corporate services capabilities, in addition to wealth management, will allow advisors to stand out in their approach to clients who require firm-level services, such as life insurance, retirement plans, deferred compensation, health care plans, nonqualified plans and key man insurance.

Mr. Poer added, "Building trust with C-suite executives in the management of their corporate and executive benefits plans creates an opportunity to leverage that relationship into a discussion about personal wealth management. Advisors who take this approach differentiate themselves from their competitors and are much more likely to also win the personal wealth management business from this wealthy client segment."

Aite Group's analysis includes key metrics and qualitative feedback from advisors, and shares best practices for acquiring and serving corporate clients in order to earn the trust of executives and, over time, the right to manage their personal wealth.  Key conclusions from the study are as follows:

  • Comprehensive corporate services practices win wealth management business from almost 90% of their corporate clients while wealth management and retirement plan services practices secure around 60% from their corporate clients.
  • Advisory practices that provide both corporate and wealth management services achieve higher revenue per client and can rely on more referrals from existing executive clients compared to practices focused solely on wealth management.
  • The number of financial advisors serving the corporate and nonprofit benefits market is scarce -- advisors that choose to specialize in this area have an opportunity to stand out from other financial advisors in the eyes of executives and business owners.
  • Financial advisors who commit to this niche market should focus on acquiring expertise in this area either through hiring or partnering with another practice, broker/dealer or RIA with expertise such as legal, technology and marketing.

View the complete results of the study at

 About the Study
Aite Group conducted an online survey of 400 U.S. financial advisors in Q1 2013. These financial advisors derive most of their revenue from their wealth management business, but many derive 15% or more of their revenue from corporations and nonprofits. In Q2 2013, Aite Group conducted in-depth interviews with 20 of these practices to understand the breadth of the services they provide corporations, how these practices have succeeded in winning business from these institutions, and the extent to which they are able to acquire attractive wealth management clients through their long-term relationships with corporations.

About NFP
National Financial Partners Corp. (NFP) and its benefits, insurance and wealth management businesses provide diversified advisory and brokerage services to companies and high net worth individuals, partnering with them to help preserve their assets and prosper over the long term. NFP advisors provide innovative and comprehensive solutions, backed by NFP's national scale and resources. NFP operates in three business segments. The Corporate Client Group, including its NFP Executive Benefits division, provides corporate and executive benefits, retirement plans and property and casualty insurance. The Individual Client Group includes retail and wholesale life insurance brokerage and wealth management advisory businesses. The Advisor Services Group serves independent financial advisors by offering broker/dealer and asset management products and services through, among others, NFP Securities, Inc., member FINRA/SIPC. Most recently, NFP was ranked in the top 10 on Business Insurance's 100 Largest Brokers of U.S. Business and Best's Review Top Global Insurance Broker lists; second on Business Insurance's Largest Agents and Brokers Headquartered in the U.S. Northeast; it operates the third largest executive benefits provider of nonqualified deferred compensation plans by total clients as ranked by PlanSponsor; and operates a top 10 independent broker/dealer as ranked by Investment Advisor. NFP is also a leading independent life insurance distributor according to many top-tier carriers. For more information, visit

About Aite Group
Aite Group is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, securities & investments, and insurance, Aite Group's analysts deliver comprehensive, actionable advice to key market participants in financial services. Headquartered in Boston with a presence in Chicago, New York, San Francisco, London, and Milan, Aite Group works with its clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of industry trends. Aite Group is not affiliated with NFP or its subsidiaries.