What Drives Claims?
We often get the question what drives claims? The biggest driver is not how good of an advisor you are it is what is going on in the market. I believe this is due to an individual’s emotional connection to their money and an advisor’s fiduciary responsibility to clients. Everybody has a different emotional connection to money, but we see consistency in humanity where it is twice as painful to lose than it is to win. So, when the market becomes volatile and money is perceived to be lost individuals can look for opportunities to “recover” that money. If an attorney explains that their advisor has the fiduciary responsibility to put their needs above the clients a big gray area opens. This is where a minor error may turn into a large claim. Where if the individual’s investments are growing then the likelihood of a claim starting goes way down. With this line of thought I set out to find what the data tells us believing we should be able to see it in the numbers. This will not come as a surprise to see that when we graph the weekly close of the S&P with initial claims filed there is an inverse relationship.
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Cases studies, testimonials and other information on the website are for illustrative purposes only, and may not reflect the terms of any particular insurance policies nor the coverage of any specific claims. Box Professional Insurance, LLC makes no representations of any kind regarding coverage or the specifics of any policy or claim. See your insurance carrier and policy for details on coverage, exclusions and limits.