InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected] Follow him on Twitter @INNJohnH.
In a 2017 LIMRA survey, 50% of companies that responded said they were using automated underwriting. In a similar survey in 2019, 62% of carriers said they used automated underwriting while 64% said they were using accelerated underwriting.
The direction is toward best-interest rules for annuity sales — a compromise between the tough fiduciary standard that registered investment advisors adhere to, and the suitability standard that regulators say is no longer sufficient.
The state Senate passed Senate Bill 76, Property Insurance, by Sen. Jim Boyd, R-Bradenton. The legislation addresses several issues surrounding the rising cost of property insurance in Florida, Boyd said.
The Florida Supreme Court will hear a constitutional challenge to a 2016 state law that put new requirements on life-insurance companies to determine whether policyholders have died and to contact beneficiaries.
The industry makes strides to increase diversity while confronting a tarnished history.
Advisors and agents should focus on compliance with the Department of Labor’s investment advice rule by the end of 2021.
Deloitte recently released its 2021 insurance M&A outlook, which “examines trends over the past several years and identifies key expectations and challenges for 2021 that may help insurance executives pinpoint M&A drivers and plan their strategy accordingly.”
With a new president and Democrats taking control of Congress, there’s a new focus on rules and regulation in Washington, D.C. In some cases, President Joe Biden and lawmakers are looking for new restrictions and new taxes. In others, they are building off what President Trump left behind.
Integrity Marketing Group today announced it is acquiring Brokers International in a blockbuster merger of industry giants.
In the complaint, lawyers for the Eagles said that “despite best efforts to navigate the pandemic,” the team and its insured subsidiaries “have incurred and continue to incur substantial financial loss” caused by the pandemic and the disruption it caused to businesses everywhere.
Jasmine Jirele was named president and CEO of Allianz Life Insurance Company of North America this week. She spoke with InsuranceNewsNet about the company’s plans in the annuity space, where Allianz is a market leader is registered index-linked and fixed index annuity sales.
President Joe Biden signed the sweeping $1.9 trillion coronavirus relief package last week, and $1,400 checks are already arriving in individual bank accounts. When the checks are getting the most attention, several items in the bill will help small-employer agencies and advisor businesses, trade association executives say.
There could be plenty more changes in store before the investment advice rule is finally in place, said Brad Campbell, a partner at Faegre Drinker Biddle & Reath, during a Thursday webinar sponsored by the National Association for Fixed Annuities.
Gensler was chair of the Commodity Futures Trading Commission (CFTC) from 2009 to 2014, and since November has led Biden’s transition planning for financial industry oversight. At the CFTC, Gensler implemented dramatic new swaps trading rules mandated by Congress.
GOP senators reintroduced the Death Tax Repeal Act of 2021 Tuesday, while Rep. Jason Smith, R-Mo., introduced companion legislation in the House of Representatives. Republicans have persistently introduced legislation to repeal the estate tax, without success.
So far, insurers have been mostly successful at fending off business interruption lawsuits stemming from the COVID-19 pandemic. Disputes are generally focused on whether the virus is a valid exclusion under policies.
Fully merging Athene into Apollo Global Management creates enticing possibilities to tie investment strategies with retirement income, the executives said today. That likely leads to more annuity sales in the long run.
The ruling, in a lawsuit brought by Genworth Financial, concluded that setting the LTCi caps exceeds the insurance commissioner’s rulemaking authority. The fallout could be felt throughout an industry struggling to accommodate insurers’ requests for repeated rate hikes to stabilize LTCi blocks.
How a less-than-romantic evening helped Stephen Kagawa love his family’s insurance business.
With Democratic control, what direction will the federal government take in retirement security?
The DOL rule took effect Tuesday, but the department and the Internal Revenue Service are both deferring compliance with the new rules until Dec. 20 as long as the “impartial conduct standards” are met. That means the recommendation is made to a best interest standard, it has no materially misleading statements and reasonable compensation.
Fourth-quarter gross annuity sales of $1.8 billion doubled from the year-ago quarter. The company’s positive annuity report was driven by increased gross sales at Eagle Life (up 630%) and American Equity Life (up 103%).
American International Group is open to taking on a minority partner for its Life & Retirement business, but the insurer is moving ahead with selling the 19.9% stake through a public offering. The company announced plans to sell the Life & Retirement stake in October.
There are still plenty of options on the table for the Biden administration to reshape the rule — a holdover from the Trump administration. The investment advice rule itself was a replacement for the unpopular fiduciary rule published by the Obama administration.
The Department of Labor announced today that its investment advice rule — a holdover from the Trump administration — will take effect as scheduled Feb. 16. There had been speculation that President Joe Biden would withdraw the rule in favor of a rule that closer mirrored the fiduciary rule put forth by the Obama administration.
Brighthouse Financial has been increasing fixed annuities, which is counter to what many other carriers are doing because of the pressure of low interest rates and capital intensity. But rates decreased from about 1.5% to around 1% in the fourth quarter, company executives said.
Prudential plans to halve the share annuities contribute to its earnings, a downsizing the insurer aims to accomplish through sales, reinsurance deals and expiring policies. Charles Lowrey, chairman and CEO, said the company strategy is centered on Prudential’s $750 million cost savings plan.
Lawyer Desmond H. Staple died March 16, 2016. According to news reports, he was found unresponsive in his car in a Walmart parking lot in Hillsborough County. The medical examiner found large quantities of acetaminophen and aspirin in his blood stream.
The fiduciary standard was the ideal at the center of the Obama-era Department of Labor’s Conflict of Interest Rule, so much so that it was known as the fiduciary rule.
Taxes, health care and labor rules are sure to change, with many other issues expected to come into play.
The COVID-19 pandemic is motivating large numbers of people to seek life insurance coverage for their families. Faster underwriting and direct-to-consumer channels also helped Principal boost its life insurance count, CEO Dan Houston said.
Appearing on the inaugural 2021 Allianz Global webcast Tuesday, Guy Adami of CNBC’s “Fast Money” did not hold back his concerns about corporate recklessness. Fueling that recklessness is a Federal Reserve that has been “extraordinarily accommodative” over the past 12 years or so, Adami said.
The lawsuit focuses on universal life insurance policies issued by Security Life under names such as Strategic Accumulator Universal Life. The policies include a separate COI charge deducted monthly and meant to compensate Security Life for its mortality risk, the lawsuit noted.
The Florida Supreme Court settled last week a critical property/casualty coverage issue dating to Hurricane Frances in 2004, ruling that an apartment complex owner cannot sue for lost rental income. The case threatened to set a critical precedent for P&C insurers.
A federal judge tossed out a lawsuit accusing MetLife and its executives of defrauding investors concerning accounting for its retirement and income solution line of business. In a Jan. 11 decision, Judge Sterling Johnson, Jr. of the Eastern District of New York found the claims “without merit.”
A bill to establish a best-interest standard was unanimously approved by the North Dakota House Industry, Business and Labor Committee following a morning public hearing. North Dakota is the latest state to pursue the best-interest model law put forth by the National Association of Insurance Commissioners.
A pair of McKinsey & Co. analysts briefed members of the National Association of Independent Life Brokerage Agencies last week and described a life insurance industry in desperate need of digital skills, younger talent and products that offer innovate solutions for a changing demographic.
Two insurers are defendants in new lawsuits filed in California over whether proper notice was given in cases of lapse or termination of policies. The plaintiffs claim American National Insurance Company and Lincoln Benefit Life Company violated a 2013 California law that beefed up notification requirements.
Financial services trade associations raise substantial sums of political action committee funds, money that supports lobbying efforts on important issues. In light of last week’s mob attack on the Capitol and the tense political atmosphere, trade associations are reviewing donor policies.
Several more states are moving quickly to add a best-interest annuity sales standard to its regulation of insurance products. The latest states to pursue the best-interest model law put forth by the National Association of Insurance Commissioners are Michigan, Arkansas, Maine and Nebraska.
The nomination of Walsh was rumored for weeks, but comes two days after Democrats swept a pair of Senate races in Georgia. The wins by Rafael Warnock and Jon Ossoff over Republican incumbents Kelly Loeffler and David Perdue, respectively, gives Democrats control of the Senate.
Democrats sweeping both Senate races in Georgia frees up Biden to pick a more left-leaning candidate for labor secretary. For starters, he doesn’t have to worry so much about a difficult Senate confirmation fight. Secondly, pro-worker issues requiring legislation at least have a fighting chance of passing Congress.
The Congressional Review Act was a little-used device that Republicans used frequently early in the Trump presidency. It’s a model that a Democrat-controlled Senate could employ to kill two rules that invited public scorn.
Republicans are unified against Biden’s plans for health care, environmental protection and civil rights. But they might not be able to stop progress on those issues — not to mention tax increases and stronger financial regulation — should Democrats Rafael Warnock and Jon Ossoff emerge victorious today.
InsuranceNewsNet’s most-read Washington Wire stories from 2020 reflect the turbulent economic reality. Tax issues, Social Security and legislation to improve retirement savings dominated our news coverage. Here are the top five news stories from our nation’s capital.
President-elect Joe Biden is busy filling out a team and putting together plans for his administration. Here are the key economic and regulatory players and the potential influence they will have on insurance and financial services.
It was a tough year to be a life insurance agent as COVID-19 swept across the country and led to business restrictions and stay-home advisories. On the other hand, the pandemic reminded Americans of the value of planning and life insurance. These five most-read stories reflect the year in life insurance.
The year in annuities included good news, bad news, regulation and legislation. Annuities sold great, sold poorly and, for a brief period, didn’t sell at all as insurers pulled products from the shelves during the raging COVID-19 pandemic. Check out these five most-read annuity stories from InsuranceNewsNet.
Transamerica announced this week that it will no longer sell variable annuities with benefit riders or fixed index annuities. The company is also exiting the standalone long-term care market, Aegon executives said in a planning session Thursday.
The Trump administration replacement rule has two main parts: a new prohibited transaction exemption allowing advisors to provide conflicted advice for commissions; and a reinstatement of the “five-part test” from 1975 to determine what constitutes investment advice.
No details are available on any changes to the Department of Labor investment advice rule. The next step is for the DOL to publish the rule. However, any rules published in the final 60 days of an administration, known as “midnight regulations,” can be rescinded by the incoming administration.
The National Association of Insurance Commissioners’ Executive Committee and Plenary adopted a pair of resolutions Thursday to wrap up work on key issues for life insurers. An effective date was established for AG 49A, and the nonforfeiture rate was dropped from 1% to 0.15%. Conflicts arose with both changes.
The National Association of Insurance Commissioners ended their fall meeting by electing a new slate of 2021 officers, with President-elect Dean Cameron announcing that he has COVID-19. Cameron, 59, is a former longtime Idaho state senator and that state’s insurance commissioner.
New anti-rebating language will permit insurers or producers to “offer or give non-cash gifts, items, or services, including meals to or charitable donations on behalf of a customer, in connection with the marketing, sale, purchase, or retention of contracts of insurance.”
Delaware is the latest state to tentatively commit to add a best-interest annuity sales standard to its regulation of insurance products. The state is accepting comment until Jan. 5 in an amendment to its suitability in annuity transactions regulation. If all goes well, the best-interest standard will be officially published on Aug. 1, 2021.
The U.S. single premium buy-out sales totaled $4.6 billion in the third quarter, down 41% from third quarter 2019 but double the $2.3 billion sold in the second quarter, according to the Secure Retirement Institute.
Alabama and Rhode Island are proposing updates to its “suitability in annuity transactions” regulation that most states adopted since the NAIC produced it in 2010. The states are the latest to propose “best-interest” standards for annuity sales.
SECURE 2.0 seeks to build on the changes in the SECURE Act to expand savings options for retirees, but will it pass?
Department of Labor officials alerted the White House Wednesday that it has completed work on a reworked rule to regulate investment advice to workers and retirees. No details are available on any changes to the rule, which could be rescinded by the incoming Biden administration.
In a pair of lawsuits, both appealed to the 11th Circuit Court of Appeals, insurers prevailed in lower-court rulings over cost-of-insurance increases. The cases are important because they are among the few COI cases that insurers have won a favorable verdict.
