How are clients reacting to the pandemic?

MDRT members from around the world shared a few of their clients’ reactions to the pandemic. 

Aware of their mortality
“People are more aware of their mortality and how fragile life is. They realize there are some things they take for granted, which we hopefully won’t in the future.”
— Sarah Helen Hogan, ACII, 4-year member, Leigh, England

Reluctant to make a big financial commitments
“Much of my practice is wealth management. The speed and ferocity of the bear market was a definite eye-opener for many clients. In the spring of 2020 we saw the quickest bear market in history, with the markets down 20% in just 20 days. For context, in the Great Recession of 2008 it took 8 months for the markets to shed 20%. With so much uncertainty in the world, and the impact it has had on personal incomes, I am finding that most people are reluctant to make a big financial commitment. Clients are scared, confused and don’t know what is going to happen next. They need us more than ever.” 
— Brad Brain, CFP, CLU, 11-year member, Fort St. John, British Columbia, Canada

Tailor your advice 
“You need to understand not everyone is reacting to this pandemic in the same way. There are some individuals that watch the news all day and are afraid to leave the house and then you have other individuals that believe the pandemic is just a fraud. For most of us the answer is somewhere in between. But you need to realize that each individual is reacting in a different way and you need to tailor your advice based upon their feelings — not yours. It is not time to judge or criticize; it is a time to empathize and understand.”
— Clay Gillespie, CFP, CIM, 19-year member, Vancouver, British Columbia, Canada  

Changing consumer attitudes
“On a social and individual level, the pandemic has changed consumer’s attitudes and behaviors, and will have an enduring impact long after lockdown is over. An increasing number of people have made adjustments to question their deep-seated habits about everything and make more frugal choices, start a new skill or make a career change to adapt to these changes.”
— Sunny Istar Lee, 10-year member, Los Angeles, California

Appreciation for financial planning
“The second quarter of this year was our best quarter ever, even with the market being down. We can directly attribute this to the realization that planning is extremely important. When times are uncertain, many appreciate just how important our industry is.”
— Brandon Heckert, AAMS, 3-year member, San Jose, California

Embracing minimalism
“The initial knee jerk reaction was that everyone was stocking up more! Like what if we run out of toilet paper or Clorox or bread? But as time elapsed, there was a paradigm shift in attitudes. Obviously income levels of many dropped, so the ability to spend got restricted. As the fact that COVID-19 was here to stay started sinking in, people started realizing it’s okay to have less, to live with less. The philosophy started changing from ‘What more can or must I have?’ to ‘What can I do without?’ For some, minimalism has actually become a way of life.”
— Priti Ajit Kucheria, LUTCF, CFP, 19-year member, Mumbai, India

See more from Priti Kucheria in the MDRT Annual Meeting video “3 ways to stand out.”

Also read in the blog

• Why clients are focusing on insurance during a pandemic
• How to communicate to move your business from stress to strength