The one most adaptable to change: Advisors

Evolution: the gradual development of something, especially from a simple to a more complex form.

If the last few decades in our industry have taught us anything, it’s that the phrase “survival of the fittest” is not just a scientific theory, but a harsh reality that plays out every day. In an increasingly hostile and unwelcoming environment brought about by new regulations, technological advances, and a global pandemic, we’ve watched the wheat separate from the chaff, leaving only advisors who are at the top of their game.

As Kim Buckey writes in “How The Role Of The Broker Has Evolved” (page 20), the demands on advisors are “continually evolving in response to economic trends, a diversifying workforce and changing consumer needs and expectations…More than ever, today’s brokers are viewed as strategic consultants.”

A key chapter in this tale of adaptation has been a concerted movement toward increased transparency for advisors, as well as the partners and systems they work with. This month’s issue delves deeply into several key areas of transparency—hospitals and payers; physician ratings; and PBM contracts—that are being shaped right before our eyes, especially in the self-funded space where so many leading advisors are doing their best work.

And this adaptation of advisor as strategic guide is never more important than in their role as fiduciaries, which was drastically accelerated by the CAA. Although the requirements can be daunting and even overwhelming, historical precedent makes it clear that advisors who embrace this new role now will reap major benefits well into the future. As Hugh O’Toole writes in “Hospital And Payer Transparency In 2023” (page 16), a similar shift took place in the retirement industry 20 years ago. “The early adopters … were able to grow and fully own the market. Conversely, the advisors who were hesitant to see the advantages of the new laws were unable to catch up and thrive.”

Related: Hospital and payer transparency in 2023: The consequences of compliance are becoming real

The evolutionary arms race is ongoing and only seems to accelerate with each passing year. But as the challenges and obstacles multiply and grow, so does the resilience and expertise of those who make up our industry. As Quincy Atwood puts it in this month’s Face of Change, “Insurance isn’t the stuffy industry that people think it is; it can be very creative and innovative. We’re always trying to push the envelope … Just when you think you understand things, you need to be looking ahead and left and right, because something is changing.”