NAIFA Begins Its Restructuring Process

The National Association of Insurance and Financial Advisors began the process of paring down its structure from 550 local associations.

The goal is to have fewer locals but stronger ones as the organization faces declining membership and difficulty finding people willing to serve as volunteers at the local level.

As the organization has seen its membership decline from a high of 140,000 to about 35,000 today, many local associations have folded because of a lack of members and volunteer leaders.

NAIFA posted the guidelines for implementing the restructure on its website.

In May, NAIFA members voted to change the association's bylaws, to allow state organizations to direct more resources to the locals.

The change is part of NAIFA’s Quality Member Experience, which would retool the NAIFA federation structure. Currently, the state and local associations operate more or less independently, with a different dues structure for each one.

Under QME, the state and local associations would become chapters under the national association with a consistent dues structure. The goal is to have fewer but more successful associations.

QME would give the state associations more authority and flexibility to direct resources to its locals, such as planning events and conducting administrative duties.

"The modernization of our Association is a major opportunity to re-position and re-brand NAIFA as the largest, strongest and most prestigious association in insurance and financial services," NAIFA President Keith Gillies said in a statement on the association's website.

Highlights of the restructuring include the following:

• NAIFA state associations will remain separately incorporated and have their own boards.
• Local associations with approximately 100 or more members may choose to apply to become NAIFA local chapters.
• Local associations with approximately 200 or more members are automatically eligible to be local chapters.
• Local chapters will function separately under a chapter agreement with the national association and their state association. Local chapters and the state associations will commit to a set of standards.
• Local programming and events will continue. Within each state, local-area teams and committees will focus on providing events, services and activities to groups of local members without unnecessary administrative duties.

The restructuring process is expected to be completed in January 2019.

NAIFA also is telling its story to consumers through a public awareness campaign, https://advisorsyoucantrust.org. The association will promote the website as a place where consumers can go to find a NAIFA member who can give them financial advice. It also will be promoted to non-members, who will be urged to join and have their names listed among Advisors You Can Trust.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].