Forbes
Forbes releases its annual ranking of America’s top Financial Security Professionals (FSPs) — the experts families turn to for estate planning and protection, including insurance. SHOOK Research conducted the extensive survey.
SHOOK Research’s rankings are based on a simple concept: Would you recommend these professionals to your family and friends?
We’ve all seen rankings based on how much money people make: rankings of athletes, entertainers, artists, company founders, billionaires, business executives, and even financial experts.
Numbers alone don’t tell the whole story.
When you need a life-threatening surgery, would you choose a surgeon based solely on his income? Perhaps the most important quantitative factor is how many surgeries the doctor has performed and his success rate.
But there’s more to our rankings: we’re looking for individuals who are best prepared to engage in more meaningful conversations about life while protecting themselves against the hazards of disability, death, and unemployment.
To accomplish this task, we not only collect quantitative data but also interview FSPs to see if they are role models that can be recommended to the world.
There’s a lot riding on our recommendations: More than 5 million Forbes readers and 66 million monthly unique visitors to Forbes.com rely on our research to plan their financial futures.
SHOOK Process
Our process begins with thorough research and recruitment of candidates from the financial services industry including life insurance companies, banks, brokerages, agents, custodians, etc. SHOOK accepts professionals who meet pre-defined minimum standards and acceptable compliance records.
An FSP is a professional who is properly licensed to sell life insurance and annuities. FSPs may also hold other certifications and licenses that enable them to offer investment and securities products.
To date, SHOOK has evaluated over 17,011 professionals for consideration by Forbes’ ranked FSPs. These advisors were narrowed down from over 45,370 candidates based on SHOOK’s sophisticated quantitative and qualitative criteria.
SHOOK Research does not receive any fee in exchange for rankings.
Basic requirements
Have seven years of experience as an FSP; Have worked for their current company for at least one year, except for exceptions such as acquisitions; Be recommended and appointed by the company; Complete an online survey; Be primarily targeted at individuals, not institutions; Have an acceptable compliance record.
Quantitative elements
Production/Premiums, Death Benefits, Assets Under Management (weightings are assigned to each) Client-related trends and data such as retention rates Portfolio performance is not a factor Audited returns are rare among professionals and returns vary for different client objectives.
Qualitative elements
Telephone and in-person meetings with experts (if in-person meetings are not feasible, exceptions will be considered where interviews will take place after the rankings are published) Experts who demonstrate “best practice” in their practices and approach when working with clients Compliance records and Form U4: There are a lot of grey areas, so the SHOOK team listens to companies that support FSPs with written support from leadership FSPs that offer a full client experience, including service model, planning process and breadth of services (including extensive use of firm platforms and resources) Qualifications and tenure Use of team and team dynamics Level of community involvement Discussions with management, peers and competitors
U4/Compliance Issues
Violations that were rejected or closed without any action being taken Complaint arose from a product, service or advice initiated by a former professional or former member of the team Length of time since the complaint Complaint related to product failure, not investment advice Resolved complaints: must be proven to have satisfied clients who continued to do business with the professional for at least one year from the date of resolution Complaints proven to be unfounded Action taken due to administrative errors or company failures
If an FSP’s compliance assessment falls into the maintainable category, it must meet the following criteria:
The FSP evaluation must be one of SHOOK’s highest qualitative evaluation criteria, which includes a face-to-face interview. FSPs must receive letters of recommendation from companies.
Ranking Algorithm
The algorithm we developed is designed to fairly compare the business practices of a large group of FSPs based on quantitative and qualitative factors. The data is weighted to prioritize trends such as best practices, business models, and recent business activity. Each variable is graded, representing a specific value for each component measured. The algorithm measures thousands of FSPs against each other.
SHOOK Disclosures
Neither SHOOK nor Forbes receive compensation in exchange for inclusion in the Top Financial Security Professionals (FSP) rankings. Rankings are determined independently (see methodology). FSPs are professionals who are properly licensed to sell life insurance and annuities. FSPs may also hold other certifications or licenses that allow them to offer investment and securities products through their licenses. The ranking algorithm is based on qualitative measures obtained through telephone, virtual and in-person interviews, measuring best practices, service models, planning services, team structure and expertise, client retention, industry experience, qualifications, compliance record reviews, firm recommendations, and quantitative criteria such as assets under management, sales revenue and firm revenue. Investment performance is not a criterion, as client objectives and risk tolerance vary and these professionals rarely have audited performance reports. Individuals should carefully select the right FSP for their situation and perform their own due diligence. SHOOK’s research and rankings provide opinions, and individuals should select the right FSP based on their own needs and circumstances. SHOOK research, rankings and opinions are not indicative of future performance or representative of any particular client’s experience. Past performance is not indicative of future results. For more information, visit www.SHOOKresearch.com. SHOOK is a registered trademark of SHOOK Research, LLC.
