The fixed annuity industry is constantly changing. From product evolution and distribution consolidation to pending regulation and legislation, NAFA works diligently to keep up with every aspect of the marketplace and provide you with its most pertinent news in a timely manner. Utilize the information below to read about recent media coverage in our Monday Media Reports, access monthly advocacy updates via The Call, visit our Press Room for the association’s most current news releases or to catch up on our Twitter feed.
DOL sends new fiduciary rule to the White House for review
10 SEPT John Hilton – Insurance News Net
“The Department of Labor sent its long-delayed fiduciary rule rewrite to the White House Office of Management and Budget late Friday. The move signals that the DOL has completed the rule, although its details are still unknown. OMB is charged with reviewing all rules for compliance with administration goals and budgetary priorities. If the OMB finds no objections, the rule will be released for public comment. Despite the late-Friday rule release to OMB, industry lobbyists were ready with a flood of criticism for the effort:”
Secrets of an Annuity Sales Guru
10 SEPT – Julia Horti – Nasdaq/Think Advisor
“John Olsen, the founder and president of Olsen Annuity Education and the author of ‘The Advisor’s Guide to Annuities’ recently spoke with ThinkAdvisor to share some insights on how advisors can sell more annuities.”
Annuities Have an Awareness Problem: Why That Matters
11 SEPT – Jean Statler – Kiplinger
“In the 1934 comedy classic It’s a Gift, W.C. Fields’ character encounters an aggressive, slick-talking annuities salesman in an indelible scene that helped shape a negative perception of the product. Despite decades of product innovation and the adoption of industry-wide operating principles benefiting consumers, some would have you believe that selling annuities has changed little in the intervening decades.”
Biden Fiduciary Rule Redo Has Gone to White House for Review (1)
11 SEPT – Austin R. Ramsey – Bloomberg Law
“The White House is reviewing a US Labor Department regulation that would redefine the kinds of financial advice subject to strict fiduciary standards under workplace retirement plan laws.
The highly anticipated new proposed rule (RIN 1210-AC02) went to the Office of Information and Regulatory Affairs late Friday, signaling that the DOL’s Employee Benefits Security Administration is preparing to issue it.”
Does low knowledge of annuities help explain low adoption among advisors?
12 SEPT – David Blanchette – Investment News
“Designing an optimal retirement income plan for a client is not easy. A myriad of uncertainties and risks must be addressed, directly or indirectly, and a significant body of research exists on the topic. Annuities are products that have been widely regarded among retirement academics and economists for decades. Though adoption of annuities has finally accelerated in recent years, they’re still not widely utilized by financial advisors, and consequently retirees, today.”
10 States Where Annuity Sales Rules Still Look Different
12 SEPT – Allison Bell – Think Advisor
“A team at the National Association of Insurance Commissioners has posted a new map that hints at whether the U.S. Securities and Exchange Commission will get a new chance to regulate fixed annuities in at least some states.
Drafters created the map to show which states have adopted the 2020 update to the NAIC’s Suitability in Annuity Transactions Model Regulation.”
DOL fiduciary rule likely to tinker with popular exemption, analysts say
13 SEPT – John Hilton – InsuranceNewsNet
The exemption is one area Chuck DiVencenzo, president and CEO of the National Association for Fixed Annuities, will be looking at closely.
“84-24 probably looks more like the old Obama-era rule,” he said. “They’ll talk about specific disclosures, a person’s compensation and how often it’s received, for instance, and an acknowledgement that there can’t be any material conflict of interest.”
End of Year Financial Checkup? Consider Annuities
14 SEPT – Rod Mims – The Street
“Many people start the new year with a host of financial resolutions and good intentions — from breaking bad financial habits to boosting their retirement savings strategy. Then before you know it, you’re approaching the end of the year, and you may be wondering if you’ve made the progress you were hoping to accomplish.”
Annuity Constraints Can Be the Client’s Friend
18 SEPT – Allison Bell – Think Advisor
“Keeping something like the current annuity surrender charge system could work better for many clients than trying to develop new contracts without any restrictions on what clients do with their money.”
With Interest Rates Near Their Peak, Fixed Index Annuities Are Worth A Closer Look
19 SEPT – Joel Johnson – Forbes
“With recent interest rate hikes, the Fed’s current target rate of 5.25% to 5.5% is now the highest it’s been in 22 years, making this an ideal time to take advantage of financial products that work well in a higher interest rate environment. While CDs and fixed annuities may immediately come to mind, there’s an additional product worth considering right now – a fixed index annuity.”
Goldman Sachs Sees the Birth of New Types of Annuities
19 SEPT – Allison Bell – Think Advisor
“Goldman Sachs analysts have spotted shadows of new types of annuities, or annuity-like products, spawning.
The firm gives a glimpse of the children of today’s annuities in a summary of results from a survey of 138 annuity market players at 30 insurers.”