How To Talk To Clients About Market Volatility?

Ups and downs are a part of life and that’s true for financial markets as well. There are certain factors that need to be taken into consideration before investing in a volatile market. Whether or not the markets are turbulent, it is your responsibility as a superhero to make your clients aware about market volatility. It all begins with talking to the client and guiding them in the right direction. As an insurance advisor, managing client expectations can be a tough task during market volatility. Your ability to deal with clients during such times will help build trust and prove that you are there for them for the long run. Here’s what you can do while talking to your clients about market volatility and staying afloat.

Communicate effectively

Communication is the key to developing any relationship. Being an effective communicator can prove to be an asset in understanding the client's perspective. Inculcate the habit of listening attentively to your client’s concerns and help them navigate their way through stormy waters of market volatility. Reach out to them and communicate clearly; transparency helps build trust.

Encourage them to stick to the plan

Market fluctuations are dynamic and are bound to happen. What’s crucial is following the original plan instead of diverging into a different one altogether. This is where you need to chip in as an advisor. Ensure that your clients stick to the financial plan you’ve devised for them based on their income and preferences. Let them know how market volatility was factored in while planning. It becomes easier for them to stay on track once they find out that market upheavals have minimal effect on their financial goals.

Put things in perspective

It always helps to put things in perspective when clients are concerned about market volatility. Offer them a long-term projection of the market and set their expectations right. Looking at the market from a broader perspective will give them hope and boost their confidence to invest more. It would be best to disclose facts about ongoing market fluctuations without holding yourself back.

Support them

Stand by your clients through thick and thin. Be proactive and make regular follow-ups, set up calls and schedule meetings, but always stay in the loop. Displaying solidarity towards your clients in tough times can help strengthen your association. Remind them that you are never too busy and just a call away.

Since you are responsible for meeting and managing clients’ expectations as an advisor, it’s best to be clear about market volatility and gain their trust.

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