What is the purpose of a suitability report in advised sales?

The purpose of a suitability report in advised sales primarily focuses on outlining personal recommendations made to customers. A suitability report serves as a structured document that clarifies the rationale behind specific product recommendations based on a client's individual circumstances, needs, and objectives. This personalized approach is crucial in ensuring that the insurance solutions offered are appropriate for the customer's situation, thus fostering transparency and trust in the advisory process.

While documenting compliance with regulations is important in the insurance industry, and some suitability reports might touch on that aspect, the core function is to detail how the recommendations align with the client's specific goals and financial context. Similarly, summarizing facts about the insurance market or explaining claim procedures, though relevant in broader discussions around customer service and education, do not capture the specific intent and utility of a suitability report in an advised sales scenario.