The Scrivens Perspective - Fall 2020

Updated:

February 11, 2021

While the weather begins to cool, insurance premiums are heating up as insurers look to offset increases in claims costs.

COVID-19 alone is suspected to lead to increased insurance premiums in Ontario. The second quarter of 2020 has hit insurers fairly hard and it’s likely to lead to higher premiums in many areas.

Specifically, cyber liability claims in Q2 have resulted in a loss ratio of nearly 500% (an increase from 153.7%). An increase was expected as cyber criminals are taking advantage of holes in the cyber security of employees working remotely.

While our 90th year in business has been challenging, it is providing us with opportunities to find solutions to better serve our clients. Some of these solutions include providing online access to your insurance information, an increased focus on digital security, and careful concern for the health and safety of everyone.

As we continue to move forward, I encourage you to keep in touch with us via Scrivens Online, email, over the phone, and on social media.

Stay healthy, stay safe.

FAQs

What is financial advising?

Financial advising involves providing guidance and advice to individuals, families, or businesses to help them make informed decisions about their financial matters. This can include various aspects such as investment planning, retirement planning, tax planning, estate planning, and more. Financial advisors analyze their clients' financial situations, goals, and risk tolerance to create customized strategies that align with their objectives.

Why is financial planning important?

Financial planning is crucial for several reasons:

Goal Achievement: It helps individuals set and achieve financial goals, whether they are short-term, such as buying a home, or long-term, like funding a comfortable retirement.

Risk Management: Financial planning addresses risks by considering insurance, emergency funds, and other protective measures.

Budgeting and Saving: It promotes responsible money management through budgeting and saving, fostering financial stability.

Wealth Building: Effective financial planning can lead to wealth accumulation and the creation of a secure financial future.

Can financial advisors help with debt?

Yes, financial advisors can help with debt management. They can assess your overall financial situation, create a budget, and develop strategies to pay down debt efficiently. They may also negotiate with creditors on your behalf, provide debt consolidation recommendations, and offer guidance on prioritizing and managing debt repayment.

What exactly does a financial advisor do?

The specific responsibilities of a financial advisor can vary, but generally, they:

Conduct a thorough analysis of a client's financial situation, including income, expenses, assets, and liabilities.
Develop personalized financial plans based on the client's goals, risk tolerance, and time horizon.
Provide investment advice and portfolio management services.
Offer guidance on retirement planning, estate planning, tax planning, and insurance.
Monitor and adjust financial plans as needed based on changes in the client's life or market conditions.
Educate clients on financial matters and empower them to make informed decisions.

What is the average fee for a financial advisor?

The fees charged by financial advisors can vary widely based on factors such as the advisor's experience, the services provided, and the region.

Common fee structures include:

Hourly Fees: Advisors charge an hourly rate for their services.
Flat or Fixed Fees: A set fee is charged for specific services or a comprehensive financial plan.
Asset-based Fees: Fees are a percentage of the assets under management (AUM).
Commission-based Fees: Advisors earn commissions on financial products they sell.
Combination of Fees: Advisors may use a combination of the above fee structures.
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It's important to discuss and clarify fee arrangements with a potential financial advisor before engaging in their services.