Climbing mountains starts with one step

By Maggie Seidel

Finseca stands as a beacon of unity in the financial security profession, dedicated to championing the cause that inspired our name: Financial Security for All.

Since our inception in 2020, Finseca has orchestrated the consolidation of four industry organizations. Among them are GAMA, which represents career agency leadership, and AALU, formerly known as the advocacy organization for advisors. NAILBA, which represents independent distribution and the brokerage marketplace, and Forum 400, the bastion of excellence for top-tier life insurance agents, have also joined our ranks.

At the core of Finseca’s mission lies the reunification of the entire financial security profession. Our diverse membership encompasses licensed insurance agents, career agency leaders and brokerage general agents. Many of these professionals also hold positions as registered representatives of broker-dealers or are representatives of registered investment advisors, with some carrying credentials in all three domains. In addition, our membership is composed of essential team members, representatives from respected carriers and affiliated advisors, including legal and financial experts. Collectively, we understand that it’s only through working together that the cause of financial security for all can be brought to new heights.

We are growing at one of the fastest rates of any professional association. Finseca comprises nearly 10,000 financial security professionals. We collectively refer to our members and the broader profession as financial security professionals.

Creating a movement

Finseca’s strategy is clear: We will take every opportunity to spread our message and share the power of holistic financial planning and the professionals who provide it. In short, we believe we are creating a movement.

Today, we have a $12 trillion protection gap, and tens of millions of Americans have little to no retirement savings, according to reports from LIMRA. This is why we see what financial security professionals do as a calling rather than a job. Financial security professionals work very hard to ensure that millions of Americans will never have to struggle with their financial security. There is a growing awareness of this situation.

A recent study from the American Council of Life Insurers, for example, showed that most Americans are concerned about the current economy and are looking for alternative ways to save money and access tools that will provide a lifetime income stream. The answer is simple: Independent research by Ernst and Young illustrates that a holistic financial plan is an essential element in achieving financial security. In fact, according to this study, consumers with a diversified retirement portfolio that includes permanent life insurance, savings through investments and guaranteed income from annuities get better outcomes.

Policymakers and regulators must come to our side

We believe that delivering financial security to all is only possible if we all work together. We need policymakers and regulators at the state and federal level to come alongside financial security professionals so their work can reach more people, not fewer. However, we have serious concerns about the rise of the regulatory state and the impact it is having on an already challenging compliance burden.

For example, if the Securities and Exchange Commission wins its ongoing legal challenge in SEC v. Cutter, more compliance and greater regulatory burdens may be coming your way. Finseca formally opposes the SEC’s actions, and you can read our legal brief at finseca.org. Now, to be clear, Finseca supports an appropriate level of regulations to ensure that consumers are protected. But we also recognize that there are occasions when well-meaning regulators go too far and actually hurt the people they are trying to protect.

In order for Finseca and our industry to be successful, I think it’s fair to say we can’t keep playing defense — especially since all the profession ever tries to do is get their clients to take action that is in the best interests of the clients’ financial security.

For example, New York Regulation 187 had a real impact on the marketplace. Specifically, from 2019 to 2021, individual life insurance premiums climbed 11.5% across the United States but only 3.6% in New York. That means ordinary New Yorkers are missing out on opportunities to provide financial security for themselves and their loved ones. This cannot continue.

Governments at every level should be encouraging the work that financial security professionals do because at its core it leads to peace of mind for their constituents. As mentioned previously, the data is clear — holistic financial planning, including life insurance and annuities, is objectively better for consumers. With greater scale and a stronger voice, we can have significant influence on public policy.

I think all of this can be summed up with some very simple truths. We must connect more Americans with financial security professionals. We must exponentially grow the financial security profession and make their jobs easier, not harder. We need policymakers and regulators to work with the profession so it can serve more people.

Financial security for all is not just an aspiration — it’s very possible. But climbing mountains starts with a simple step. And for our movement, step one is for the financial security profession to come together as one.