Arthur J. Gallagher & Co. acquired Partners Advantage Insurance Services and AMZ Financial Insurance Services on Jan. 28. The move marked the first substantial entry by Gallagher into the independent marketing organization channel of insurance distribution.
Seventy percent of the financial services executives surveyed said their institutions have either recently completed an update of their risk management program or have one in progress.
With its LTC rider, SmartCare arrives at the intersection of two key retirement trends: rising costs of long-term care and increasing life expectancies. It is estimated that 50 percent of Americans turning 65 today will require some form of long-term care, with average lifetime long-term care expenses of $266,000, Brighthouse noted.
A National Association of Insurance Commissioners’ subgroup had disagreement today during its first conference call today on IUL illustrations. The issue is whether IUL multipliers are fooling consumers into under-funding policies, or an appropriate risk-reward option.
A National Association of Insurance Commissioners’ subgroup will resume discussions Tuesday on controversial indexed universal life illustrations. The group is expected to discuss how to illustrate products with different attributes, and whether to consider capping the credited rate.
The Alliance for Lifetime Income, formed last year to promote retirement income options, has signed on as the sole sponsor of The Rolling Stones’ 2019 “No Filter” U.S. stadium tour. The tour kicks off April 20 at the Hard Rock Stadium in Miami and continues into late June.
Ohio National tells a federal judge that “and” is the key word in its selling agreements. If the judge agrees, then the insurer’s controversial decision to end trail commissions on certain variable annuity contracts might stand.
A letter signed by 14 IMO executives was sent last month to the leading trade associations that represent annuity sellers. They say trade groups are too accepting of best-interest ideas put forth by the National Association of Insurance Commissioners.
Sen. Bernie Sanders, I-Vt., is proposing legislation to eliminate the estate tax. Called the For the 99.8% Act, it would raise $2.2 trillion from the nation’s 588 billionaires. The proposal comes two days after Senate Republican leadership proposed a bill to repeal the estate tax.
New analysis finds that just 26 percent of the total life insurance coverage needed is being met. The result is $70 billion in lost premiums for the industry. The report found that insurance companies are missing out on an average of $785 in annual life insurance premium payments per person who requires insurance coverage in the U.S.
Although the next couple years are expected to fall short of the 3 percent annual growth goal set by the Trump administration, the current economic expansion is the longest in history. And growth will remain positive at least for the foreseeable future, a Nationwide economist said.
Arthur J. Gallagher & Co. is acquiring Partners Advantage Insurance Services, a blockbuster deal that gives the Chicago-based insurance giant an entry into the insurance marketing organization space. Established in 1927, AGC is the third-largest insurance broker in the world.
Released last week, Nevada is seeking comments on its fiduciary duty proposal by March 1. Under the proposal, broker-dealers and sales representatives are subject to a fiduciary duty when providing investment advice. But they can qualify for an episodic exemption if they need the criteria.
In a report released last week, the Maryland Financial Consumer Protection Commission is recommending that a “fiduciary duty standard” be placed on broker-dealers and insurance agents doing business in the state. Companion legislation is expected to be introduced soon, state officials say.
LPL Financial broker Lance Browning refiled a lawsuit Friday seeking damages from Ohio National’s surprise decision to cut trail commissions on certain variable annuities. The plaintiff strategy is shifting from a class-action request to individual lawsuits on behalf of brokers, an attorney said.
Benefits were paid on more than 303,000 policies and passed the $10 billion mark for the first time. According to a trade association, in 2017, total claims amounted to $9.2 billion paid to about 295,000 individuals.
Less than four years after producing Actuarial Guideline 49, the NAIC is ready to tackle indexed universal life illustrations yet again. An IUL illustration subgroup has a 2019 charge to “provide recommendations for modifications to AG 49.”
MIB Group recently signed an agreement with Epic to utilize its electronic health records system. Under the agreement, MIB’s 400 U.S. life insurance members will be able to access electronic health record (EHR) data via Epic’s Chart Gateway for life insurance underwriting.
The year in life insurance and annuities featured lots of surprising news about companies moving in and out of the business. In addition, sales numbers hit new lows before bouncing back at year’s end, and new products and strategies also attracted reader interest.
Ohio National responded to a pair of lawsuits filed in the Southern District of Ohio court seeking to overturn its decision to cut trail commissions on certain variable annuities. The insurer denied all claims by an Arkansas broker-dealer, while asking the court to dismiss a lawsuit by a Texas broker.
Sammons Financial Group is building a 200,000-square-foot office with plans for additions in the future, the Des Moines Register reported. The company has pledged to add 200 new jobs to its existing base of 510 employees.
The financial services industry is conceding defeat on passing a retirement security package in 2018. But Sens. Ben Cardin, D-Md., and Rob Portman, R-Ohio, have introduced the Retirement Security & Savings Act, a broad set of reforms designed to help Americans save more for retirement. It will be considered in the next session.
Sammons Financial Group will lay off an unspecified number of employees during the first quarter of 2019. The company cited efficiencies and automation as reasons behind the layoffs, which follow last month’s announcement of layoffs by Nationwide.
All signs point to 2019 being a good year to be a financial advisor. The regulatory shackles are in abeyance, while surveys show consumers are happier and better prepared when they get financial advice. In addition, annuities are on the way back and more Americans are gaining access to retirement plans.
Ohio National officially broke service contracts today on select variable annuities with a guaranteed minimum income benefit rider. Producers continue to have questions about what that precedent-setting decision means, but all are waiting on a federal court to decide on lawsuits.
Congress has a lot of its plate, but financial services would like to see a retirement income security bill get passed before the end of the year.
A National Association of Insurance Commissioners’ working group is satisfying neither side with an annuity sales model law that is out for public comment. The draft avoids many of the controversial issues the working group debated over the past year.
Up to 14 states are ramping up efforts to put agents under a fiduciary duty. New York is furthest along with a best interest rule, which faces an industry lawsuit that could be decided early in 2019. Otherwise, the NY rule is slated to take effect in August 2019.
LIMRA and Wink were both correct with last week’s “universal life is up” and “universal life is down” reports, respectively. The key is how the data is viewed. Overall, new premium rose quarter-over-quarter from 2017.
A.M. Best recently met with the Ohio National management team to discuss a series of recent events, including the insurer being sued several times for a decision to end trail commissions on certain annuities. A.M. Best is sticking with its strong ratings for now.
The National Association of Insurance and Financial Advisors’ New York chapter filed a lawsuit to stop the state’s controversial best-interest rule. The rule is “arbitrary and capricious” and was crafted outside of the New York Legislature, the lawsuit claims, which has the proper authority.
Ohio National has no plans to reverse its controversial decision to end trail commissions for select variable annuity contracts, a company spokesman said today. The company announced the surprise departure Tuesday of president and chief operations officer Christopher Carlson after just three months.
Ohio National named a new president/COO Tuesday and announced the surprise departure of Christopher Carlson just three months after he ascended to the top post. The company has had a turbulent fall after announcing in September that it would end trail commissions on certain variable annuities.
The Big I and the Professional Insurance Agents of New York filed a lawsuit today asking a New York court to throw out the best-interest regulation approved by state officials this summer. The new standard is “extremely troubling,” plaintiffs said in a press release.
A state insurance commissioners’ task force will consider a Pennsylvania court case involving insolvent LTCi claims. A request to limit those claims could have implications for life insurance and annuities if successful, an industry trade association says.
New York finalized its best-interest standard in July for both annuity and life insurance sales. A new report finds that insurers are facing higher compliance costs that come with retraining sales staff and other associates involved in annuity and life insurance transactions.
A National Association of Insurance Commissioners working group wants to “enhance consumer understanding” with a proposed two-page summary to accompany life insurance illustrations. The group is making slow progress on the proposal, with a few issues remaining to work out.
Veritas Independent Partners, an independent broker-dealer based in Conway, Ark., filed a lawsuit in the Southern District of Ohio court asking the court to require Ohio National to continue paying trail commissions per their contracts.
The first lawsuit against Ohio National was filed this week by a Texas broker. Ohio National stunned the annuity sales industry with its September announcement that it will stop paying trail commissions on certain variable annuity contracts.
Election night yielded a little something for everyone. But what does it mean for insurance and financial services as a whole? We see three key takeaways, and not all of them are bad news.
Fifty-four percent of advisors say they will “very likely” increase compliance infrastructure as a direct result of the late Department of Labor rule, a new survey finds. Many advisors and firms are expected to stick with new ways of doing business, despite the DOL rule being tossed out by an appeals court.
An NAIC working group is debating whether to allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. A new proposal would double that figure to 20 years. Opponents say the indices would not be accurate, nor easily understood by consumers.
Tuesday’s election is likely to be followed by about 20 new state insurance commissioners sometime in 2019. Given the state momentum for regulatory control of insurance rules, the election results are expected to have a major impact on the industry, experts say.
If control of Congress changes in any way, a very real possibility, insurer teams will likely have to retrace their lobbying steps, said a panelist at LIMRA’s 2018 Annual Conference.
Universal life was a very popular product in the 1980s, when interest rates routinely hit double digits. When interest rates nosedived, however, it began a negative spiral that took UL policyholders down a financial rabbit hole. While some surrendered their policies and took the loss, others keep paying much-higher premiums. What can be done?
A fierce split on whether to extend annuity sales rules to in-force policies crippled a state insurance commissioners’ working group.
A National Association of Insurance Commissioners working group has been hashing out an annuity sales model. But the group’s chair says the model will not be done in time for NAIC’s fall meeting in San Francisco next month.
A National Association of Insurance Commissioners’ working group is on track to present a completed annuity sales model law to its parent committee.
The New York-California faction made a big push to beef up a proposed state insurance commissioners’ annuity sales rule, but the effort fell short when working group members rejected “best interest” language.
Members hope to reach tentative agreement on an annuity sales rule it can take to its parent committee during the NAIC Fall Meeting Nov. 15 in San Francisco.
A National Association of Insurance Commissioners’ working group will meet again in person – this time in Chicago. The group hopes to reach agreement between conservative and liberal factions on an annuity sales model law for the states to adopt.
An NAIC working group is debating whether to allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. Opponents say the indices would not be accurate, nor would they be understood by consumers.
National Association of Insurance Commissioners members are debating how to best create an online resource of life insurance information for consumers. The effort is meant to supplement the NAIC Life Insurance Buyer’s Guide. More consumers are getting information online, so that’s where regulators want to be.
A National Association of Insurance Commissioners working group wants to “enhance consumer understanding” with a proposed two-page summary to accompany life insurance illustrations. The group is making slow progress on the proposal, with a few issues remaining to work out.
Broker-dealers across the country and reeling and unsure how to respond to Ohio National terminating trail commissions on some of its variable annuities. At least one leading annuity analyst does not expect the ON decision to be repeated by other insurers.
Insurance commissioners are wrestling with a rule change that would allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. The NAIC working group needs at least one more conference call to finalize the amendment.
Ohio National will end broker compensation on existing variable annuity contracts with guaranteed minimum income benefit riders, the company announced last week. The decision is believed to be unprecedented and could wind up in court.
A booming economy combined with generous tax cuts has the affluent class increasing in numbers. Affluent households, or those with more than $100,000 income, grew by 30 percent between 2012 and 2016.
Republican lawmakers are bidding to make last year’s tax cuts permanent, but face opposition. One industry group would like to see greater attention paid to retirement security aspects.
A new Deloitte survey finds insurers well behind the ball when it comes to meeting consumers’ needs digitally. Consumers are self-educating about life insurance online and carriers and agents need to respond better to that market if they want to increase life insurance ownership, the survey concludes.
