For the 2004 Insurance Advisors’ Report Card, Investment Executive contacted 179 advisors at six companies and various MGAs across Canada and asked them to rate their firms on a scale of 1 to 10, with 10 being highest, on 23 aspects of their firms.
In all our researchers conducted 20-minute interviews with advisors at national insurers Clarica Financial Services Inc, The Co-operators Group Ltd., London Life Insurance Co.’s Freedom 55 Financial division, Great-West Life Assurance Co., State Farm Canada and Equinox Financial Services Inc. IE researchers also spoke to a number of independent advisors to more accurately reflect the diversity of the insurance sales force. All advisors surveyed are selected at random from IE’s list of subscribers.
IE then averages the individual ratings in each category to produce a category score for each firm. To calculate our IE rating, we average each firm’s category scores, and also give extra points for the number of times a firm places first in a category. In a case in which there are ties, we go to two decimal places to determine the top score in that category. We then rank the firms from highest to lowest.
Advisors shared their ratings and their comments, as well as their candid opinions of the best and worst aspects of their firms. Investment Executive guarantees advisors surveyed confidentiality.
This year we added six new categories. The most contentious one was “ease of moving firms.”
Without it, State Farm Canada would have kept its top ranking. However, the low marks received in this category by State Farm and other captive sales force firms tipped the balance in favour of Toronto-based Equinox. Just 0.1 of a point separated the IE ratings of it and State Farm.
In the September issue of Investment Executive, we will revisit these numbers in the content of the 2004 Advisors Report Card when we combine the findings of all the Report Cards — Brokers, Planners, Account Managers and Insurance Advisors — to look at trends across all the channels.
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