Falling Leaves, Rising Numbers

We are firmly in the “ber” months, and it’s time for InsuranceNewsNet’s annual look at indexed products.

What we found is that the indexes driving today’s most popular annuity and life insurance products are evolving quickly, introducing new investment strategies, artificial intelligence and more advanced risk-control features into the market. However, as innovation progresses, regulators are raising concerns about whether certain index designs have become overly complex. They are also questioning whether aggressive back-tested performance projections might set unrealistic expectations for consumers. 

InsuranceNewsNet’s John Hilton delved into the world of life and annuity indexes and found indexed annuities and indexed universal life products continue to drive sales growth, fueled by retirees seeking protection from market volatility. More than 365 indexes are now available for insurance products, and the number continues to grow.

But regulators are scrutinizing whether back-tested index performance may overstate future results and mislead consumers. In addition, industry experts debate how to balance innovation, transparency and consumer protection. 

Our feature explores what these developments could mean for insurers, advisors and consumers.

Also in October, InsuranceNewsNet brings the insights of two industry leaders. 

Tom Bumbolow joined American Life after a 20-year career at JPMorgan, where he helped to build its credit business. He took what he learned at JPMorgan and brought it to American Life, where he now serves as head of the company’s distribution and business development.

American Life became the first insurance company to be entirely cloud based. This transformed the buying experience and allowed the company to continue its mission of providing simple, easy-to-understand products in an uncomplicated way.

In this month’s Interview (page 10), Bumbolow discusses with Publisher Paul Feldman the need to keep annuities easy to understand and the importance of listening to agents and clients.

Leah West has had a 30-year career working with clients as they navigate the twists and turns of life’s financial journey. 

As the owner and founder of Rivertown Financial in Stockton, N.J., West works with multiple generations of high net worth clients, helping them build their financial houses and keep them strong.

Read about West’s philosophy of working with clients as well as her inspiring personal story in this month’s In the Field feature (page 20).

It’s difficult to imagine a time in the U.S. when there were more cars than tractors on farms. Farmers might have embraced the automobile enthusiastically in 1926, but these rural car owners had their own set of challenges — from driving on unpaved country roads to being unable to find affordable auto insurance coverage.

The Ohio Farm Bureau Federation stepped up to meet the need, offering auto insurance to farmers under the name Farm Bureau Mutual Automobile Insurance Co. From there, an iconic American insurance brand was born.

Nationwide marks 100 years in business this year, growing to offer life and property/casualty insurance, as well as annuities and financial products, to a 21st-century consumer audience while remaining true to its rural roots and invested in its hometown of Columbus, Ohio.

Read more about the company’s history and its view to the future in this month’s Special Feature (page 56).

October is one of my favorite months of the year. If you’re lucky enough to live in a place that experiences colorful foliage and cool, crisp air in October, I hope you make the time to get outside and enjoy it.

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 susan.rupe@innfeedback.com.