Put Your Brokers and Bankers in Competition
Posted by Larry Doyle on February 25, 2009 12:00 PM |
Every global financial enterprise has been hard pressed to maintain, let alone grow, revenues given the economic turmoil. With assets held in portfolio experiencing increasing levels of delinquencies and defaults, these institutions are all forced to set aside more reserves. How do businesses respond? Cut expenses and increase fees wherever and however possible. Who pays? You!!
I regularly see a sleight of hand at work on behalf of banks, insurance companies, money managers and other financial intermediaries to generate greater fees. While you will regularly be solicited with new and improved product offerings, how often are you getting the call that a fee is being increased and you may want to shop around for a better rate.
In an attempt to help you navigate this landscape, I strongly encourage you to approach your brokers and bankers and request a grid-like structure highlighting the basic products on one axis and the fee structure on the other axis. While more structured products and specialized services can be worthy of higher fees, a whole host of basic products fall into the plain vanilla category.
Why is your homeowner’s insurance policy going up when home replacement values are clearly dropping? Why is auto insurance going up when auto prices are dropping? Why are bank charges increasing when credit demand is declining?
Shop around and make your brokers, bankers, and planners earn your business. Ultimately your relationship with these service providers needs to be mutually beneficial in order to be longstanding. At times like these you need to make sure they are “working” for you!!
While premium rates are on the rise, the best managed shops will pick up market share at the expense of others. Take the time and make the effort on these fronts. You can learn more about the dynamics within the insurance industry and financial planning by reviewing my interview with Sean D’Arcy from early January, Got Insurance? Financial Aid? 529 Plans? Read On…. For additional information, feel free to access our Debt Management primer and our Insurance primer located in the right sidebar.
Helping you navigate the economic landscape!!