1: CAST SERVICE HIGHLIGHT Branch Optimization
Effectively manage productivity, customer service and staff resource levels As service providers aggressively expand product and service offerings, the branch delivery channel takes on new importance. Companies, particularly banks, frequently overlook the interdependencies of appropriate skill sets, staff levels, processes and physical branch configuration. The situation is further complicated in situations where multiple companies are being merged. A holistic view is essential in optimizing branch staff levels. Organizations continue to struggle with excess cost and ineffective productivity management in their branch networks. Factors Influencing Branch Staff and Productivity Management - Inability to effectively forecast workload and accurately schedule resources based on service delivery targets and sales opportunities
- Limited understanding of the implications of delivering new products and services
- Inefficiencies from merging disparate operations, technologies and staffing practices
- Failure to educate staff and customers on alternative processing options
- Limited understanding of the implications of newly installed technologies
- Inefficiencies resulting from recent arbitrary, across the board staff reductions
- Incomplete performance metrics
Why CAST for Branch Staffing Optimization - Over 15 years experience reengineering branch office processes in banking, insurance and capital markets
- Superior data capture and analysis methodology
- Proven approach to developing staffing standards and performance metrics
- Comprehensive staffing models
- Demonstrated expertise in organization design
- Collaborative approach which actively involves branch personnel
- Established implementation tools and techniques
- Proven tools for monitoring and measuring benefit
If you would like additional information, please contact Tom Vleisides at (213) 614-8066 ext. 244 or email tvleisides@castconsultants.com.
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2: AMERICAN BANKER - Consumers in No Rush to Hire Financial Planners American Banker Wednesday, July 21, 2010 By Donna Mitchell After two years of economic and market volatility, consumers surveyed by the Certified Financial Planner Board of Standards are more concerned about their finances. Yet they are not turning to financial planners in droves to help them manage their finances, the survey found. Twenty-eight percent of respondents to the CFP Board's latest survey said they used a financial planner, compared with 29% in the survey the board conducted two years ago. Nevertheless, 43% said that financial planners have grown in importance since the financial crisis started two years ago, the CFP Board said during a press call last week to announce the poll's findings. The survey of 1,002 consumers was conducted by phone on July 7 and 8. "There are a lot of reasons why Americans have been reluctant to hire financial advisers in the past," said Robert Glovsky, the CFP Board chairman. They tend to think financial planning services are for the wealthy, not for the middle class, and many do not know where to find an adviser they can trust, he said. As financial products become more diverse and complex, however, it will become more necessary for investors to entrust their financial futures to a CFP, Glovsky said. The task before the profession is to get the public to understand what CFP certificants do and what distinguishes them from a professional who does not have that designation. Among survey respondents who began using a financial planner since the start of the financial crisis, 31% said they had done so because difficult times created more need for financial guidance. Forty-four percent of respondents said they leaned on financial planners for reasons other than the crisis. "A lot of people will look for a financial planner when going through a life transition," Glovsky said. He added, though, that the financial crisis might have heightened people's concerns about having enough money to retire comfortably. Thirty-six percent of the survey respondents reported no change in their attitude toward financial planners, and 14% thought the professionals had become less important. They might need a professional's help, the survey found. In general, about 65% of respondents said they were more concerned about their finances today than they were at the beginning of the financial crisis two years ago. Thirty-seven percent said they expect their personal finances improve in the next six months. Less than half, 46%, said they expect to hold on to what they have, and 16% said they expect to lose money. Thirty-three percent of respondents 33%, said they were cautious about their finances in general, and 65% said they are more concerned about their money than they were at the beginning of the financial crisis. Forty-four percent of respondents said they expect the U.S. economy to improve in the next six months; just 28% said they expect it to worsen; and 22% said they expect no change in that time frame. Lawmakers did not inspire confidence in the survey respondents. Eighty percent said Congress and regulators have not done enough to manage the problems in the financial markets and their impact on investors. People's outlook on the economy varied by ethnicity. Seventy-four percent of blacks surveyed said they expected the economy to improve, versus 51% of Hispanics and 38% of white respondents. Back to Top
3: AMERICAN BANKER - Fed Report Finds that Poor Subsidize Rewards Programs… … for Wealthy American Banker Thursday, July 29, 2010 By Kate Fitzgerald A report from the Federal Reserve Bank of Boston has quantified something that many payments executives have long suspected: that lower-income people subsidize the costs of rewards programs for wealthier consumers. The report, released Monday, concluded that credit card interchange fees indirectly drive up the costs of products and services across the board, costing $23 per year for households that mainly use cash, checks or debit cards but that households using credit cards with rewards programs get benefits worth, on average, $756 annually. The report called this effect an "implicit money transfer," to wealthier, rewards-card users (households earning $150,000 or more annually) from poorer consumers (those earning $20,000 or less annually). The report concluded that reducing merchant interchange fees and card rewards programs "would likely increase consumer welfare." Though some payments experts disputed the report's assumptions, some observers saw a good chance that the formula-laden, 57-page report could reignite discussions about legislation to regulate credit card interchange. "The timing of this report is very interesting," said Red Gillen, a senior analyst at the Boston market research company Celent, given that the Dodd-Frank Act, which will take effect next year, includes provisions to regulate debit card interchange rates. "This is the first time we're seeing real numbers on how much interchange costs certain types of households," Gillen said. "The formulas may be debated, but this is certainly the starting point for a new conversation on interchange's effects." The Boston Fed's report "confirms what we've been saying, which is that credit card interchange fees drive up costs for everybody," said Mallory Duncan, a senior vice president of the National Retail Federation and its general counsel, "but it also brings out the fact that middle- and lower-class consumers who use credit cards the least are essentially subsidizing others." Credit card interchange on average is about 2% of a sale. The federation said consumers pay about $50 billion annually in interchange. "So everybody is paying 2% more for everything at the point of sale to cover the cost of interchange, but rewards cardholders are getting some of that back," Duncan said. But some experts dispute the report's findings. "There are gaping holes in these economists' argument," said Megan Bramlette, a director at the New York research firm Auriemma Consulting Group. "Their underlying assumption is that, if interchange were reduced or eliminated, merchants would lower their prices across the board, and there is no evidence that such a thing would happen," she said. The economists also ignore the fact that merchants derive many benefits from accepting cards, including selling more goods, she said, because "plastic is more convenient than cash." She also noted the unaccounted for costs of handling cash because merchants that deal in cash and checks are often subject to higher losses. "From a purely academic standpoint, this report makes a point, but it ignores so many other elements of the payment system that in my view it is not complete," Bramlette said. Back to Top
4: AMERICAN BANKER - High-Touch Trumps High-Tech in B of A Merrill Poll … …of Affluent Investors American Banker Monday, August 2, 2010 By Matt Ackermann Most affluent individuals still would rather work one on one with a trusted adviser than use online tools for financial planning, a Bank of America Merrill Lynch survey found. In B of A Merrill's quarterly survey of 1,000 affluent investors, 57% of the investors said they go to their financial advisers for advice after making a financial mistake or financially irresponsible decision -- the same percentage that turn to their spouse or partner. Forty-two percent consult an adviser before making an expensive purchase. Thirteen percent do not consult an adviser but said they feel they should. Lyle LaMothe, the head of U.S. wealth management at the Bank of America division, said this reflects the tough economy; wealthy individuals want to deal directly with advisers whom they trust. "I think it is fair to say that, when a financial event becomes significant, people don't turn to machines, they turn to advisers for information," LaMothe said in an interview. "They turn to people that they trust for advice and guidance when the moment is critical." The Internet is a "good portal for information, but investors still want a level of advice," LaMothe said. Investors want more from their advisers by way of "communication and dialogue," he said. "When the market was healthier and the economy was more robust, perhaps meeting on a quarterly or monthly basis was enough, but now investors feel that they can trust an adviser more if they speak with them more," LaMothe said. Affluent Americans increasingly expect they will have to delay retirement. Forty-five percent said they expect to retire later than they had originally planned, versus 31% in the first quarter and 29% in January. "Investors are still skeptical," said Dean Athanasia, the head of B of A's global wealth and investment management and of Merrill Edge, the company's online brokerage platform. "They are still seeking returns, but they have low tolerance for risk," Athanasia continued. "They want to be sure that they are investing and working with advisers to proceed in the best way possible. Clients feel that the economy is coming back but there are going to be some bumps along the way." LaMothe said financial advisers will play a vital role in "educating and reeducating" young investors about the historic value in the market. According to the survey, 50% of affluent individuals describe themselves as having a low tolerance for risk and as gravitating toward more conservative investment vehicles. Fifty-two percent of investors between the ages of 18 and 34 described their risk tolerance as low, versus 45% in the 35-50 age bracket and 46% of those 51 to 64 years old. Back to Top
5: ANNOUNCEMENTS - American General Life Companies Launches Online Solutions… … Selection Tool Called "I`ve Got a Client" HOUSTON--(Business Wire)-- American General Life Companies (American General) is introducing "I`ve Got a ClientSM", a new online tool designed to help financial services professionals easily match client needs with life, annuity and accident and health product solutions. The tool is now available at www.GotaClient.com. "The www.GotaClient.com site is a straightforward, three-step web interface that identifies product solutions based on clients` demographic characteristics and known needs," said Peter Delehanty, senior vice president of marketing. "Following a needs analysis, the `I`ve Got a Client` web tool offers producers a fast and easy way to immediately identify solutions from American General`s life, annuity and accident and health product portfolios." LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080310-11.htm Back to Top
6: ANNOUNCEMENTS - DTCC Launches Equity Derivatives Reporting Repository Derivatives Repository Ltd Receives FSA Regulatory Approval LONDON--(BUSINESS WIRE)--The Depository Trust & Clearing Corporation (DTCC) announced today two significant developments: 1) the launch of its Equity Derivatives Reporting Repository (EDRR) and 2) FSA approval of DTCC Derivatives Repository Ltd subsidiary. "DTCC played an important role in bringing this new service to market over an aggressive timeframe, allowing the OTC derivatives community to meet commitments made to global regulators to have a repository service running for equity derivatives by the end of July" LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080610-18.htm Back to Top
7: ANNOUNCEMENTS - Lincoln Financial Group Selects Cohn & Wolfe …. ….as Communications Partner NEW YORK, July 23 /PRNewswire/ -- Lincoln Financial Group announced today that it has engaged Cohn & Wolfe, a leading global communications agency, to support their communications efforts including branding, corporate positioning and executive thought leadership. The appointment follows a four-stage selection process that included presentations to Lincoln's CMO, CEO and leadership team. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072610-19.htm Back to Top
8: ANNOUNCEMENTS - NAIC Releases RFP to Produce Designations … …for Commercial Mortgage-Backed Securities The National Association of Insurance Commissioners (NAIC) has released a request for proposal (RFP) for a vendor to model expected losses on approximately 7,500 commercial mortgage-backed securities (CMBS) as of December 31, 2010. This process will determine the NAIC designations utilized by insurance companies to calculate the solvency reserves required to cover their CMBS holdings. LINK TO FULL ARTICLE: http://www.naic.org/Releases/2010_docs/cmbs_rfp.htm Back to Top
9: ANNOUNCEMENTS - New York Life's Top Ratings Affirmed … …By All Four Major Rating Agencies Agencies Cite Very Strong Capital and Earnings in Issuing Highest Ratings and Stable Outlook NEW YORK, N.Y., July 15, 2010 -- New York Life Insurance Company, America's largest mutual life insurer, today announced that all four of the major ratings agencies have affirmed the company's highest possible ratings for financial strength with stable outlooks. New York Life remains one of only three life insurers with the highest financial strength ratings from all four of the major rating agencies, out of more than 1,000 life insurers in the United States. Further, the company is one of only two of the highest-rated life insurers with stable outlooks from all four of the ratings agencies. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071610-18.htm Back to Top
10: ANNOUNCEMENTS - The Hartford Mutual Funds Reduces Fees on 36 Funds… …Including Institutional, Retirement and Retail Share Classes Lower fees aim to make funds more competitive, more attractive to consultants and financial advisors SIMSBURY, Conn.--(BUSINESS WIRE)--The Hartford Mutual Funds announces permanent mutual fund expense reductions effective July 1, 2010. The changes impact 36 funds covering institutional and retirement share classes as well as the retail share classes of six funds. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071610-11.htm Back to Top
11: ANNOUNCEMENTS - The Principal Launches Fee Disclosure Website Educational center to assist financial professionals and plan sponsors with new regulation DES MOINES, Iowa--(BUSINESS WIRE)--The Principal Financial Group® today launches a new website dedicated to educating financial professionals and plan sponsors about the new fee disclosure regulation unveiled recently by the Department of Labor. The long-awaited regulation governs how service providers disclose fees to retirement plan sponsors and plan fiduciaries. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080610-6.htm Back to Top
12: BANKINSURANCE.COM - Annuity and Life Insurance Sector Upgraded To Stable NEWS IN BRIEF - JULY 19 - 25, 2010 The U.S. annuity and life insurance sector has earned a ratings upgrade to “stable” from “negative,” according to A.M. Best. While the real estate sector remains troubled, unemployment rates are high, interest rates are low, consumer spending is muted, credit defaults are rising and the European debt crisis continues, A.M. Best said, trends pertaining to credit spreads, asset impairments, balance sheet and product derisking, access to capital and risk management are increasingly favorable. Investment portfolios have recovered, and insurers are raising capital through debt and equity issuances and reducing their reliance on short-term funding. This has resulted in a 20% plus increase in absolute capital for the industry overall, prompting the improved outlook to “stable,” A.M. Best said. BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
13: BANKINSURANCE.COM - B of A’s Balboa Insurance Up For Sale NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 Charlotte, NC-based, $2.3 trillion-asset Bank of America Corp. (B of A) has put Irvine, CA-based Balboa Insurance Group up for sale. B of A acquired the insurance group when it purchased Countrywide Financial Corp., its parent, in 2008. In 2009, Balboa helped B of A generate $2.3 billion in insurance underwriting earnings, which comprised 3.67% of the company’s noninterest income, according to the Michael White-Prudential Bank Insurance Fee Income Report. Bank of America Corporation (NC) earned $355.0 million in P&C underwriting net income in 2009, up 532.3% from $56.1 million in 2008. B of A CEO Brian Moynihan said, however, “One of the reasons we’re getting rid of these non-core activities is a restructuring that not only has a value of capital, but also has a value of a more straightforward company.” Balboa is a leading provider of forced-place creditor coverage on foreclosed and distressed homes and offers voluntary home, auto and life insurance products as well as reinsurance to mortgage guarantors, bloomburg.com reports. BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
14: BANKINSURANCE.COM - Bank Annuity Fee Income Drops 20.7% in First Quarter NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 Annuity fee income earned by U.S. bank holding companies (BHCs) in the first quarter dropped 20.7% to $582.6 million, down from $734.5 million in first quarter 2009, and slid 6.8% from $624.8 million earned in fourth quarter 2009, according to the Michael White-ABIA Bank Annuity Fee Income Report. About 40% (39.9%) of all large top-tier U.S. BHCs sold annuities in the first quarter, led by BHCs with over $10 billion in assets (72.7%) and trailed by BHCs with $500 million to $1 billion in assets (29.8%), the lowest participation rate among asset classes. Among all BHCs, annuity commissions and fees comprised 10.2% of combined mutual fund and annuity fee income of $5.7 billion or 14.9% of combined insurance brokerage and annuity fee income of $3.9 billion. BHCs with over $10 billion in assets generated 94% of all BHC annuity fee income earned during the quarter, despite recording a 21.4% drop in this revenue to $547.8 million, down from $697.1 million in first quarter 2010. In contrast, annuity earnings among BHCs with $1-$10 billion in assets slipped only 3.2% to $29.7 million, down from $30.7 million, but comprised only 4.6% of all BHC annuity earnings in the quarter. BHCs with $500 million to $1 billion in assets saw a similar annuity earnings drop to BHCs with over $10 billion in assets, as their annuity earnings skidded 23% to $5.15 million, down from $6.69 million in first quarter 2009. San Francisco, CA-based, $1.2 trillion-asset Wells Fargo & Co. recorded the highest annuity earnings among all U.S. BHCs in the first quarter, posting a 4.52% decline in this revenue to $169 million. New York City-based, $819.7 billion-asset Morgan Stanley ranked second, bolstered by a 121.6% spike in annuity earnings to $82 million. New York City-based, $2.13 trillion-asset JPMorgan Chase ranked third, despite a 33.3% drop in annuity income to $60 million, and Charlotte, NC-based $2.3 trillion-asset Bank of America Corp. ranked fourth with a 60% tumble in annuity revenue to $44.5 million. In contrast, Birmingham, AL-based, $137.3 billion-asset Regions Financial posted a 4.7% slide in annuity earnings to $24.3 million to rank fifth, and Cleveland, OH-based $94.3 billion-asset Key Corp. generated 6.62% growth in annuity fee income to $16.6 million to rank sixth. The remaining top-ten producers recorded drops in annuity earnings, with Atlanta, GA-based, $171.8 billion-asset SunTrust Banks’ annuity revenue down 46.6% to $13.9 million; U.S. Bancorp’s down 40% to $12 million, Huntington Bancshares’ down 16.9% to $11.08 million and BB&T Corp.’s annuity earnings down 13.2% to $10.7 million, the Michael White-ABIA Bank Annuity Fee Income Report reveals. BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
15: BANKINSURANCE.COM - DC Appeals Court Panel Vacates SEC Indexed Annuity Rule 151A NEWS IN BRIEF - JULY 19 - 25, 2010 A DC Circuit Court of Appeals three-judge panel has vacated Securities and Exchange Commission (SEC) Rule 151A, which classified indexed annuities as securities to be regulated by the SEC. Judges David Sentelle, Douglas Ginsburg and Judith Rogers said the SEC “cannot justify a particular rule based solely on the assertion that the existence of a rule provides greater clarity to an area that remained unclear in the absence of any rule.” This SEC assertion, the judges said, “is not helpful in assessing the effect Rule 151A has on competition.” Old Mutual General Counsel Eric Marhoun, attorney for the insurer that asked for the hearing on SEC Rule 151A, said, “We are very pleased by the court’s action because it wipes the slate clean and clarifies that Rule 151A is null and void.” To read the court’s ruling, click here. To read the court’s revision of the July 2009 Appeals Court decision on Rule 151A, click here. BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
16: BANKINSURANCE.COM - FDIC’s $250,000 Insurance Signs Ready For Posting NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 The Federal Deposit Insurance Corporation (FDIC) has sent out a letter encouraging all insured depository institutions to acquire and post the updated FDIC official sign which makes clear that FDIC insurance covers $250,000 per depositor, per each account ownership category, per insured depository institution. These official signs may be acquired free of charge by clicking here. BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
17: BANKINSURANCE.COM - Fixed Annuity Sales Tumble 61% at U.S. Banks NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 Fixed annuity sales at U.S. banks and other depository institutions tumbled 61% in the first quarter to $4.26 billion down from $10.92 billion in first quarter 2009, impacted by lower rate advantages over bank certificates of deposit (CDs), according to survey estimates compiled by Evanston, IL-based Beacon Research. Houston, TX-based Western National Life led as the number one fixed annuity provider in the bank channel ($1.1 billion), followed by New York Life ($800.9 million) and trailed by Des Moines, IA-based Principal Financial Group ($246.7 million), Cincinnati, OH-based W & S Financial Group Distributors ($245.4 million) and Radnor, PA-based Lincoln Financial Group ($188.4 million). Book annuities dominated fixed annuity products sold in the first quarter, replaced only in 8th place by an indexed annuity and in 10th place by an income annuity. Regarding overall fixed annuity sales, Beacon Research CEO Jeremy Alexander said, “For the remainder of 2010, bank sales of fixed annuities will rise of their rate advantage over CDs grows.” He added, “Certainly the demand for conservative investments for bank customers will continue to be strong.” BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
18: BANKINSURANCE.COM - Former Prudential PLC CEO Named AIA Head NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 New York City-based American International Group (AIG) has named former London-based Prudential plc CEO Mark Tucker as CEO of Hong Kong-based American International Insurance (AIA). Prudential plc’s planned $35.5 billion acquisition of AIA under current Prudential CEO Tidjane Thiam fell apart in June when British regulators questioned Prudential’s capital position. AIG said it now plans to seek approval to list AIA on the Hong Kong stock market and issue an initial public offering on the company before the end of 2010, Reuters reports. BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
19: BANKINSURANCE.COM - LPL Financial To Expand Retirement Business... ...with NRP Acquisition NEWS IN BRIEF - JULY 19 - 25, 2010 Boston, MA-based LPL Financial Holdings, parent of San Diego-based LPL Financial Corp., has agreed to acquire San Juan Capistrano, CA-based National Retirement Partners (NRP), which offers group and individual retirement plan products and services and comprehensive financial services to high net worth individuals. NRP’s advisors and staff will join LPL Financial and form within the corporation LPL Financial Retirement Partners, a new division that will be led by current NRP President and CEO Bill Chetney. LPL Financial expects the deal to “enhance its capabilities and presence” in the group retirement plan market, when it closes in the fourth quarter, pending regulatory approval. BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
20: BANKINSURANCE.COM - Obama Signs Financial Reform Bill into Law... ...FDIC’s Bair Sees Pluses NEWS IN BRIEF - JULY 19 - 25, 2010 U.S. President Barack Obama has signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act passed earlier by both Houses of Congress. Federal Deposit Insurance Corporation (FDIC) Chairman Sheila Bair said the legislation addresses what she views as the three key pillars needed for financial reform: resolution authority, systemic oversight and consumer protection. The law, she said: (1) gives the FDIC receivership authority to close and liquidate systemic firms in an orderly manner; (2) creates a Systemic Risk Council charged with identifying and addressing emerging systemic risks; (3) gives regulators oversight over derivatives markets; (4) creates uniform consumer protection rules for both banks and non-bank financial firms; (5) strengthens capital requirements for the U.S. banking system, subjecting bank holding companies to the same standards as insured banks for Tier 1 capital; and (6) improves the FDIC’s ability to manage its Deposit Insurance Fund and build stronger reserves. While Bair said, “no set of laws, no matter how enlightened, can forestall the emergence of a new financial crisis somewhere down the road,” she said the new legislation will “help limit the incentive and ability for financial institutions to take risks that put our economy at risk, … and it will give regulators the tools to contain the fallout from financial failures so that we never have to resort to a taxpayer bailout again.” For more information on the legislation, click here for commentary by the Independent Community Bankers of America (ICBA). Click here for analysis prepared by Dechert LLP for the American Bankers Association (ABA). BankInsurance.com News in Brief is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
21: BANKINSURANCE.COM - Retirement Replaces College as Prime Savings Goal NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 Savings for retirement (43%) has replaced saving for a child’s college education (41%) as a priority among adult Americans, according to a Country Financial survey. Last year 47% prioritized saving for college while 41% looked to their retirement savings first. Country Financial Vice President Keith Brannan said of the switch, “You can always borrow to pay for college, but you can’t borrow for retirement.” BankInsurance.com News in Brief is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
22: BANKINSURANCE.COM - SEC Abandons Indexed Annuity Fight NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 Securities and Exchange Commission (SEC) Chairman Mary Schapiro said she will not revisit or rewrite an indexed annuity rule attempting to place indexed annuities under the purview of the SEC. HR 4173, which was signed into law on July 21, classifies indexed annuities as insurance products to be regulated by state insurance regulators. The Financial Planning Coalition (FPC) is unhappy with the newly legislated classification and regulatory oversight. FPC Assistant Director for Government Relations said, “Under the present law, there may be some unsuitable sales.” He added, “The legislation takes away the opportunity to present its case before the court,” BestWire reports. Two weeks ago a three-judge panel threw out the SEC Indexed Annuity Rule. BankInsurance.com News in Brief is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
23: BANKINSURANCE.COM - SEC Adopts Changes to Investment Advisor Disclosure Document NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 The Securities and Exchange Commission (SEC) has adopted changes to Form ADV-Part 2, the principal disclosure document that SEC-registered investment advisors must provide their clients and prospective clients. Under the new rules, which take effect 60 days after their publication in the Federal Register, the narrative brochures must be uniformly organized and disclose in plain English the advisor’s business practices, fees, methods of analysis, investment strategies, code of ethics, conflicts of interest and disciplinary information. Brochure supplements must disclose in plain English the educational background, business experience and any disciplinary action regarding the employees who provide advisory services to clients. The brochures must be delivered to prospective clients before or at the time they become clients, and advisors must provide clients with annual summaries of material changes to the brochures and create, provide or offer to provide clients with updated brochures. All brochures must be filed electronically with the SEC, which will make them available to the public at its website. To read the detailed description of the new rules, which SEC Chairman Mary Schapiro said “help transform the brochure into a plain English narrative that is well-suited to serve investors’ need,” click here. BankInsurance.com News in Brief is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
24: BANKINSURANCE.COM - SEC Proposes New Mutual Fund Marketing and Sales Rules NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 The Securities and Exchange Commission (SEC) has proposed new rules to replace current rules regarding the way mutual funds are marketed and sold to investors. SEC Chairman Mary Schapiro said, “Many investors do not understand what 12b-1 fees are. Our proposals would replace rule 12b-1 with new rules designed to enhance clarity, fairness and competition when investors buy mutual funds.” The proposed rules, she said, limit fund sales charges, improve fee transparency, encourage retail price competition, and revise fund director oversight duties. The proposed rules: (1) limit “ongoing sales charges” to the highest fee charged by the fund for shares with no ongoing sales charges; (2) allow funds to pay 0.25% per year out of their assets for advertising, sales compensation and services; (3) require funds to disclose “ongoing sales charges” and “marketing and service fees” in their prospectuses, shareholder reports and transaction confirmations, where the total sales charge rate must be displayed; (4) allow funds to sell shares through broker-dealers that determine their own competitive compensation rate and prevent funds sold in this manner from deducting other sales charges from fund assets; (5) eliminate the need for fund directors to approve fund distribution financing plans, since the rules set automatic limits on fund fees and charges; and (6) require directors to oversee sales charges and marketing and service fees as a general fiduciary duty. The SEC is asking for commentary on its proposed rules regarding mutual fund distribution fees and disclosures within 90 days of their publication in the Federal Register. To read the Proposed Rules, click here. BankInsurance.com News in Brief is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
25: BANKINSURANCE.COM - SunTrust to Sell Money Market Assets to Federated Investors NEWS IN BRIEF - JULY 19 - 25, 2010 Atlanta, GA-based, $171.8 billion-asset SunTrust Banks has agreed to sell $17 billion in money market assets managed by SunTrust’s RidgeWorth Capital Management and its subsidiary StableRiver Capital Management to Pittsburgh, PA-based Federated Investors. The money market assets will be transitioned into Federated money market mutual funds through a series of closings that will occur through the end of 2010, pending regulatory approvals. Federated manages about $350 billion assets in its 137 funds. BankInsurance.com News in Brief is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
26: BANKINSURANCE.COM - Treasury Names Walsh Acting Comptroller Of... ...The Currency Come August NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010 The Office of the Comptroller of the Currency (OCC) Chief of Staff John Walsh has been named to serve as Acting Comptroller of the Currency when Comptroller of the Currency John Dugan leaves that position in August. Walsh joined the OCC in October 2005, and earlier served on the Senate Banking Committee and as an International Economist in the Treasury Department. The Treasury Department, which named him to his new position, said, “Mr. Walsh’s experience in OCC management and the international arena made him a strong fit for this role … as the OCC moves forward to implement the Dodd-Frank legislation and works to establish new international bank capital standards.” BankInsurance.com News in Brief is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com. Back to Top
27: DIABILITY INSURANCE - Disability Insurance Services Surpasses 500,000... …DI Case Count SAN DIEGO, July 21 /PRNewswire/ -- Disability Insurance Services, a leading brokerage in the disability insurance arena, announced today that it has surpassed 500,000 disability insurance cases. The accomplishment is the result of a steadfast commitment to provide insurance brokers and affiliates with industry-leading tools, practices and technologies that help turn DI opportunities into successes. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072210-17.htm Back to Top
28: K@W – Finance and Investment - Mid-life Crisis? Venture Capital Acts Its Age The venture capital community is showing signs of middle age -- moving more slowly and cautiously than before, and hitting fewer home runs than it did in younger, leaner days. As a result, experts say, the sector is having trouble producing the robust performance long associated with it. This means investors need to look at venture capital, and its impact on their portfolios, in a new way. LINK TO FULL ARTICLE: http://knowledge.wharton.upenn.edu/article/2552.cfm Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu Back to Top
29: K@W – Will the Economic Recovery Run Out of Steam? After a year of solid gains, the economic recovery is beginning to slow. Demand is trailing off as inventory levels have been restored and emergency stimulus measures withdrawn. Continued high unemployment and a downtick in housing are weighing on consumer confidence and spending. Add unexpected shocks from Europe and a slowdown in China, and forecasters are now ratcheting down their expectations for growth over the next year. While many still expect economic expansion to continue in the longer term, "we have definitely hit a soft patch," one Wharton faculty member notes. LINK TO FULL ARTICLE: http://knowledge.wharton.upenn.edu/article/2556.cfm Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu Back to Top
30: M&A - Federated Investors, Inc. to Acquire $17 billion in Money Market Assets… … from RidgeWorth Capital Management PITTSBURGH, July 16 /PRNewswire-FirstCall/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, reached a definitive agreement with SunTrust Banks, Inc. to transition approximately $17 billion in money market assets to Federated. The assets are currently managed by SunTrust's RidgeWorth Capital Management Inc. and its subsidiary StableRiver Capital Management LLC. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071910-13.htm Back to Top
31: M&A - Hewitt Associates to Acquire... ...Leading U.S. Investment Advisory Firm, EnnisKnupp Combination Makes Hewitt One of the Largest Investment Advisors in the U.S. and Significantly Strengthens Its Global Capabilities LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--Hewitt Associates, a global human resources consulting and outsourcing company, today announced it entered into a definitive agreement to acquire EnnisKnupp, a trusted and leading provider of investment advisory services to large institutional investors. This acquisition will significantly boost Hewitt's existing investment consulting capabilities in the U.S. and support its global growth plans. Under the terms of the agreement, Hewitt will acquire EnnisKnupp, which provides a wide range of investment consulting services to corporations, public funds, endowments, foundations, non-for-profits and Taft-Hartley plans. Once this transaction is complete, Hewitt will be one of the largest providers of investment consulting services in the U.S. and in the world, with nearly $3 trillion in assets under advisement. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072110-1.htm Back to Top
32: M&A - PolicyOptions Acquires Life Settlement Division... …of Golden Gateway Financial, Inc. IRVINE, Calif. (July 27, 2010) -- PolicyOptions, a nationwide life settlement brokerage, is pleased to announce that it has successfully completed the acquisition of the life settlement division of Oakland, Calif. based Golden Gateway Financial, Inc. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072810-14.htm Back to Top
33: MISCELLANEOUS - Bolder Giving Lauds Giving Pledge Success … …While Challenging Ordinary People to Also Take Leaps in Their Giving Giving Pledge is for Billionaire Families, but Next Door Philanthropists Give Big Too reports Bolder Giving New York, NY 8.04.2010 -- Generosity hit new heights today with 40 of the wealthiest U.S. families committing 50% or more of their assets to charity. But a broader story is that it's not just the wealthy that boldly pledge a remarkable percentage of their income or assets. Bolder Giving, reports that everyday philanthropists are making similarly extraordinary commitments to give in what NYU professor and Bolder Giving's director Jason Franklin calls a "rising tide of philanthropic activity". LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080610-4.htm Back to Top
34: MISCELLANEOUS - Colonial Life Expands Broker Marketing Support More brokers are adding voluntary benefits to employer benefit packages COLUMBIA, S.C. (Aug. 4, 2010) -- To meet increased interest from brokers who want to build their revenue stream and cement client relationships by offering voluntary benefits solutions, Colonial Life & Accident Insurance Company is adding to its broker support team. The down economy is making voluntary benefits a better solution than ever for brokers and their clients: adding voluntary benefits was the number one action brokers took in response to the economy, according to a recent survey conducted by Colonial Life.1 Nearly 60 percent of brokers say they've added voluntary benefits to the options they now offer their clients. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080610-9.htm Back to Top
35: MISCELLANEOUS - Four Troubling Things You Didn't Know About Financial Reform The following is a post by John Wasik, a columnist for Reuters.com and author of "The Audacity of Help: Obama's Economic Plan and the Remaking of America." The opinions expressed are his own. On its surface, the financial reform package looks tough on banks and Wall Street. Yet for individuals, the protections are much less pronounced and highly diluted. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071910-3.htm Back to Top
36: MISCELLANEOUS - Insurance Handbook Reviews Important Basics About The Industry I.I.I.'s NEWEST PUBLICATION ALSO SERVES AS AN INSURANCE 101 COURSE NEW YORK, July 15, 2010 --The Insurance Information Institute's (I.I.I.) just-released Insurance Handbook is a 196-page publication aimed at helping reporters, public policymakers, regulators, students, insurance company employees and academics better understand how insurance works. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072010-16.htm Back to Top
37: MISCELLANEOUS - John Hancock Launches New CE Course … …to Help Financial Advisors Navigate a Changing Tax Environment - Presentation and white paper from John Hancock's Special Markets department - Designed to aid advisors and clients in preparing for likelihood of increasing taxes BOSTON, July 28 /PRNewswire-FirstCall/ -- John Hancock recently launched a new Continuing Education (CE) course intended to help financial advisors and their clients plan and implement investment and tax strategies amid an uncertain tax environment. Advisors interested in taking the course should contact their local John Hancock wholesaler about dates and times in their geographical area. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072910-19.htm Back to Top
38: MISCELLANEOUS - MetLife Foundation Supports Revision of National Staff … …Development Council's Standards for Staff Development DALLAS, July 16 /PRNewswire-USNewswire/ -- The National Staff Development Council received a $250,000 grant from MetLife Foundation to initiate the revision of NSDC's Standards for Staff Development. First published in 1995 and revised in 2001, the standards represent the collaborative work of NSDC and 17 other professional associations. Based on research, the standards define effective professional development and guide schools and districts in implementing professional learning to improve student achievement. MetLife Foundation's support reinforces its commitment to increasing teacher effectiveness and strengthening the role of collaborative leadership in schools. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072010-16.htm Back to Top
39: MISCELLANEOUS - Online Vote Highlights Financial Hardship … …Many Young People Face When A Parent Dies With Little Or No Life Insurance Top Vote Getter to Receive $5,000 Scholarship from the LIFE Foundation Arlington, VA - July 14, 2010 - Beginning today, the nonprofit LIFE Foundation is inviting the public to cast its vote to help determine which of three college-age students is most deserving of one of the top scholarships in its LIFE Lessons Scholarship Program. The LIFE Foundation awards scholarships to students who are struggling to pay for college because their parents died with little or no life insurance. The three young people whose videos are included in the online vote have already been awarded $2,500 scholarships from the LIFE Foundation. The young person whose story receives the most online votes will receive an additional $2,500 in scholarship money. Votes can be cast at www.lifehappens.org/vote. The deadline to vote is Friday, Aug. 13, 2010 at 5 p.m. Eastern. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071610-8.htm Back to Top
40: MISCELLANEOUS - Pacific Life Funds Rebrands Portfolio Optimization Funds Pacific Life Funds' Portfolio Optimization Funds has launched a rebranded suite of marketing literature and Web-based sales resources for financial professionals and their clients. Following research within the market, the Retirement Solutions Division strategically rebranded the look and feel to emphasize a core message: Straightforward diversification for long-term investing. The content was carefully developed and speaks consistently across all media with a clearly defined value proposition. LINK TO FULL ARTICLE: http://www.pacificlife.com/Channel/News/Current+Press+Releases/Pacific+Life+Funds+Rebrands+Portfolio+Optimization+Funds.htm Back to Top
41: MISCELLANEOUS - Prudential Addresses Concerns … …With The Department Of Veterans Affairs NEWARK, N.J.--(BUSINESS WIRE)--Prudential Financial today announced that it is in talks with the Department of Veterans Affairs to address the concerns that have been raised in connection with the Servicemembers Group Life Insurance Program. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080210-2.htm Back to Top
42: MISCELANNEOUS - TIAA-CREF's Chief Investment Strategist Co-Authors Book … …on Investing Using Endowment Model Approach NEW YORK--(BUSINESS WIRE)--"The Endowment Model of Investing," a newly published book co-authored by TIAA-CREF's Chief Investment Strategist, Brett Hammond, discusses the ability of the endowment approach to help long term investors harness the power of diversification for portfolio risk management. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071610-10.htm Back to Top
43: PERSONNEL CHANGES - American Express Announces... ...Executive and Board of Directors Appointments American Express Company today announced executive and Board of Directors appointments to help drive innovation, digital strategy, new online/mobile products and fee-based revenue streams. Daniel H. Schulman will join American Express from Sprint Nextel to head a new Enterprise Growth Group. Separately, American Express has elected Ted Leonsis to its Board of Directors and will name him Chairman of a new Innovation and Technology Committee of the Board. Daniel H. Schulman to join American Express from Sprint Nextel to Head Enterprise Growth Group Daniel H. Schulman will join American Express Company next month as Group President -- Enterprise Growth, a newly created position and business unit. LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100721005829/en/American-Express-Announces-Executive-Board-Directors-Appointments Back to Top
44: PERSONNEL CHANGES _ MassMutual Retirement Services Adds Two Relationship… … Managers to Support Growth in TPA Market SPRINGFIELD, Mass., July 28 /PRNewswire/ -- MassMutual Retirement Services Division's continued strong sales growth in markets served by third-party administrators (TPAs) has set the stage for the appointment of two new TPA relationship managers. Diane DuFresne and Danielle Maynard, each of whom has been with MassMutual for several years, will report to Craig Haase, assistant vice president, TPA Alliance, MassMutual Retirement Services. LINK TO FULL ARTICLE: http://insurancebroadcasting.com/insurance-news-072910-h1.htm Back to Top
45: PERSONNEL CHANGES - Morgan Stanley Smith Barney Announces Appointment … …of James J. Tracy as COO of Distribution and Development, Wealth Management -- U.S. NEW YORK--(BUSINESS WIRE)--Morgan Stanley Smith Barney today announced the appointment of Managing Director James J. Tracy as Chief Operating Officer of Distribution and Development, Wealth Management in the U.S. His responsibilities will include business development, professional development, talent management and national branch services. LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100719006132/en/Morgan-Stanley-Smith-Barney-Announces-Appointment-James Back to Top
46: PERSONNEL CHANGES - The Hartford Names George Eknaian Chief Actuary … …for Wealth Management Simsbury, Conn., July 22, 2010 -- The Hartford Financial Services Group (NYSE: HIG) today announced the selection of George Eknaian as chief actuary for the firm's Wealth Management businesses. In this role, Eknaian will lead the risk and asset-liability management functions and drive the development of actuarial capabilities in support of The Hartford's Wealth Management businesses. He will report to Dave Levenson, president of Wealth Management, and Chris Swift, The Harford's chief financial officer. LINK TO FULL ARTICLE: http://insurancebroadcasting.com/insurance-news-072310-h1.htm Back to Top
47: PERSONNEL CHANGES - The Hartford Names Sharon Ritchey to Lead Retirement Plans Simsbury, Conn., July 27, 2010 -- The Hartford Financial Services Group (NYSE: HIG) today announced that Sharon Ritchey has been named executive vice president of retirement plans. In this role, she will oversee all aspects of the firm's employer-sponsored retirement plans business, covering the corporate, public and education markets. The Hartford had approximately $46.5 billion in retirement plan assets under management as of March 31, 2010. Ritchey's appointment is effective immediately. LINK TO FULL ARTICLE: http://insurancebroadcasting.com/insurance-news-072810-h7.htm Back to Top
48: PERSONNEL CHANGES - TIAA-CREF Names Virginia M. Wilson Chief Financial Officer TIAA-CREF today announced the appointment of Virginia M. (Gina) Wilson as Executive Vice President and Chief Financial Officer. Ms. Wilson will oversee TIAA-CREF's finance and actuarial functions, including financial management and planning, actuarial, tax, accounting, and financial reporting. She will be a member of TIAA-CREF's executive management team and will work across the organization to continue to strengthen financial processes and maximize the value of the organization's assets. LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100721005881/en/TIAA-CREF-Names-Virginia-M.-Wilson-Chief-Financial Back to Top
49: PRODUCTS - AXA Equitable Introduces Athena Indexed Universal Life Insurance New Product Offers Lifetime Coverage with Protected Exposure to Equity-linked Growth Potential NEW YORK, July 14 /PRNewswire-FirstCall/ -- AXA Equitable Life Insurance Company, a leading U.S. life insurer with a 150-year history, has introduced Athena Indexed Universal Life (Athena IUL), a new permanent life insurance policy with enhanced cash-value accumulation potential and downside protection. Athena IUL offers interest crediting linked to the movement of three major market indices (up to a cap) with a built-in guaranteed floor to help protect against index declines. LINK TO FULL ARTICLE: http://www.forbes.com/feeds/prnewswire/2010/07/14/prnewswire201007140914PR_NEWS_USPR_____NY34860.html Back to Top
50: REGULATORY - ACLI Comments on President Obama Signing H.R. 4173... ... The Dodd-Frank Bill With President Obama's signature on the Dodd-Frank bill, the focus of financial reform now shifts to the federal regulatory agencies which will conduct the numerous studies and draft the myriad of regulations mandated under the legislation. LINK TO FULLA RTICLE: http://www.acli.com/ACLI/Newsroom/News+Releases/NR10-037.htm Back to Top
51: REGULTORY - ACLI on Financial Services Reform Legislation The American Council of Life Insurers (ACLI) recognizes the extraordinary effort that went into developing legislation to reform financial regulation in the United States. In particular, we acknowledge the leadership of Senate Banking Committee Chairman Chris Dodd (D-CT), House Financial Services Committee Chairman Barney Frank (D-MA), Ranking Senate Banking Committee Member Richard Shelby (R-AL) and Ranking Financial Services Committee Member Spencer Bachus (R-AL). LINK TO FULL ARTICLE: http://www.acli.com/ACLI/Newsroom/News+Releases/NR10-034.htm Back to Top
52: REGULATORY - Factbox: Long To-Do List Ahead For Financial Regulators Below is a list of some of the key actions that need to be taken and a timeline for some of the key regulations. REGULATORS - Office of Thrift Supervision is shut down immediately and its authorities transferred to the Comptroller of the Currency.
- The heads of all the major financial regulators and the Treasury secretary will form the Financial Stability Oversight Council to monitor risk in the financial system. Effective immediately.
- Federal Deposit Insurance Corp has authority to liquidate or unwind all large troubled financial firms. Effective immediately.
LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071910-5.htm Back to Top
53: REGULATORY - Factbox: Winners and Losers In The U.S. Financial Bill Below are some of the likely winners and losers under the regulation bill: CREDIT RATING AGENCIES - WIN AND LOSE - Credit rating agencies -- such as Moody's Corp, Standard & Poor's and Fitch Ratings -- will be subject to greater liability.
- Rating agencies could be sued if they "recklessly" failed to review key information in developing a rating.
LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-071910-4.htm Back to Top
54: REGULATORY - Financial Regulatory Rewrite Becomes Law The Dodd-Frank bill is now the Dodd-Frank Act, after President Barack Obama signed the 2,300-page financial reform package into law. Nearly two years after the events that began the dramatic failures and near-failures of the U.S. financial crisis, Congress and the White House have now set down their attempt to prevent another such crisis. And in his speech, Obama was quick to again raise the specter of American International Group Inc.'s financial products division. "Firms like AIG placed massive risky bets with borrowed money," he said, adding that this act will "put a stop to taxpayer bailouts, once and for all." LINK TO FULL ARTICLE: http://insurancenewsnet.com/article.aspx?id=209307&type=lifehealth Back to Top
55: REGULATORY - Indexed Annuities' Battle with SEC Comes to an End On July 21, 2010, a long and hard-fought battle with securities regulators was finally won by the insurance industry. After being under question for 13 years, the securities status of indexed annuities was finally and indefinitely settled when President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The month of July was particularly victorious for the insurance industry, as the District of Columbia U.S. Court of Appeals vacated the Securities and Exchange Commission's (SEC) Rule 151A just nine days prior. Although the court's actions were considered a victory for the insurance industry, it did not assure that the SEC would not question the securities status of indexed annuities again sometime in the future. Fortunately, Senator Tom Harkin (D-IA) submitted a Congressional amendment to the Dodd-Frank Act to ensure that indexed annuities would continue to be regulated as fixed insurance products permanently. Therefore, the insurance industry has prevailed in a struggle that they have fought since 1997. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072310-9.htm Back to Top
56: REGULATORY - NAMIC CEO Responds to Signing of Dodd-Frank Act by President Obama The National Association of Mutual Insurance Companies (NAMIC) responded to today's signing of the Dodd-Frank Act by President Obama. "The signing of the Dodd-Frank Act into law represents the end of one challenge and the beginning of another," said Charles M. Chamness, NAMIC president and chief executive officer. "For the past 20 months, we've worked to educate lawmakers about the unique position of property/casualty insurance in the financial services arena. While the state-based regulatory system is not perfect, adding a federal bureaucracy on top of that, as had been proposed, would have only compounded the costs and problems within the system without benefitting consumers. For the most part, our arguments were accepted and the legislation rightly respects the role of state insurance regulators." LINK TO FULL ARTICLE: http://www.namic.org/newsreleases10/100721nr1.asp Back to Top
57: REGULATORY - NCOIL President Demands Insurers Provide Transparency… …and Disclosure In Life Insurer Retained-Asset Accounts Lexington, KY, August 4, 2010 -- The President of the National Conference of Insurance Legislators (NCOIL) today expressed his strong concern relating to the adequacy of consumer protections and disclosures currently in place for retained-asset accounts for life insurance death benefits. His comments were made in response to a July 28 Bloomberg report and other media allegations. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080610-1.htm Back to Top
58: REGULATORY - The More We Read About Dodd-Frank, The Less We Like It New horrors of the Dodd-Frank bill seem to come to light every day. The latest I've learned of is the concept of the "qualified mortgage" the bill codifies into law. LINK TO ARTICLE: http://www.istockanalyst.com/article/viewarticle/articleid/4343079 Back to Top
59: REPORTS - BOLI Assets Reach $135.8 Billion in 1Q 2010 According to Report Issued by Michael White and Meyer-Chatfield FOR IMMEDIATE RELEASE - Radnor, PA, and Jenkintown, PA, August 2, 2010 - Bank-owned life insurance (BOLI) assets reached $135.8 billion in the first quarter of 2010, reflecting a 1.6% increase from $133.7 billion in the first quarter of 2009, according to the Michael White-Meyer-Chatfield Bank- Owned Life Insurance (BOLI) Holdings Report. The first quarter 2010 total for BOLI holdings is the sum of BOLI assets held by large bank holding companies (BHCs), stand-alone banks, and savings associations. BOLI is used to recover costs of employee benefits and offset the liabilities of retirement benefits, helping banks to keep up with the rising benefit costs. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080410-10.htm Back to Top
60: REPORTS - IRI Releases Second Quarter Product Trend Update … …for U.S. Variable Annuity Market Carrier Filings Reflect a Swing toward More Generous Benefits WASHINGTON, D.C. - The Insured Retirement Institute (IRI) today released a report on product trend updates within the U.S. variable annuity market for the second quarter. Compiled by Advanced Sales & Marketing Corporation, the report found that while the vast majority of changes to contracts were minor, carrier filings during this period reflect a swing toward more generous benefits. Among those filings, benefit withdrawal percentages were enhanced anywhere from .25 percent to .50 percent. Overall, carriers filed more than 70 changes in the first quarter, compared to 140 in the previous quarter. In addition, year-to-year quarterly product changes decreased by 33 percent, dropping from a near-record setting pace of 213 changes in the second quarter in 2009. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072910-13.htm Back to Top
61: RESEARCH - Bank Annuity Sales Continue to Climb Windsor, CT, July 28, 2010… Sales of annuities through banks maintained positive momentum as the second quarter of 2010 began. According to the Kehrer-JacksonSM Monthly Bank Annuity Sales Survey, bank sold total annuity premium hit highs in May not seen since April of 2009. Sales of both fixed and variable annuities were higher month-to-month. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072910-14.htm Back to Top
62: RESEARCH - The Hartford Survey Finds Americans Are Working More, Spending Less… …But Still Struggling Research By The Hartford Finds Americans Are Working More, Spending Less, But Continue to Struggle Financially The Hartford's Gendreau recommends employers help employees manage health and increase benefits understanding in order to fight stress and absences SIMSBURY, Conn., Aug. 2, 2010 -- While the U.S. economy is showing signs of recovery, nearly three-quarters of Americans are worried about their jobs and are trying to make ends meet, according to a recent national survey1 by The Hartford Financial Services Group, Inc. (NYSE: HIG). The Hartford's 2010 Benefit Landscape Study found that many Americans are working more, spending less, but still find themselves struggling financially, announced Ron Gendreau, executive vice president, The Hartford Group Benefits, today at the annual conference of the Disability Management Employer Coalition. In a keynote speech titled, "In the Aftermath of The Storm: Life in a Recessionary/Post-Recessionary Work Environment," Gendreau said The Hartford surveyed 1,000 full-time workers in April about the economy's impact on work and home life. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080310-14.htm Back to Top
63: RETIREMENT - Retirement Benefits for U.S. Workers Declined 19% between 1998 … …and 2008, Towers Watson Analysis Finds Increase in Defined Contribution Benefits Partially Offsets Overall Decline NEW YORK--(BUSINESS WIRE)--U.S. workers saw the value of their employer-sponsored retirement benefits -- as measured by percentage of pay -- decline by double-digit levels over a 10-year period ending in 2008, according to an analysis of eight major industries conducted by Towers Watson (NYSE, NASDAQ: TW), a global professional services company. A decrease in the value of defined benefit (DB) plans fueled the overall drop, although an increase in the value of defined contribution (DC) plans somewhat offset the total decline. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072310-1.htm Back to Top
64: RETIREMENT - TIAA-CREF's CEO Calls Retirement Security a Pressing National Need NEW YORK--(BUSINESS WIRE)--In a speech yesterday to the National Bureau of Economic Research, TIAA-CREF chief executive Roger W. Ferguson, Jr. called for a "comprehensive and sustainable system that provides genuine retirement security" for all workers. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080210-6.htm Back to Top
65: RETIREMENT - Work on Employer Sponsored Retirement Plans? … …The "Must Have" Designation The Retirement Advisor University at UCLA Anderson School of Management Executive Education is the first retirement plan management certification program offered in cooperation with a nationally recognized institution of higher learning. The mission is to empower financial professionals focused on the defined contribution and 401(k) industry with the qualifications and skill sets necessary to deliver on the promise of a secure retirement for plan sponsors and participants. The Retirement Advisor University at UCLA Anderson Executive Education grants the C(k)P™ "Certified 401(k) Professional" designation. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080610-11.htm Back to Top
66: STUDIES - GAO Study Finds that Life Settlements Deliver … …Almost 8 Times Surrender Value to Seniors HUDSON, Ohio--(Business Wire)-- The U.S. Government Accountability Office recently issued a long anticipated report on the state of the emerging Life Settlement market. One of the key findings, based on analysis of over 1,000 life settlement transactions, was that seniors selling their policies in a life settlement transaction received almost 8 times as much money as they would have had they surrendered the policy to the insurance company. "This confirms what we have been saying all along, life settlements are good for consumers and result in maximizing policy value for seniors who no longer want or need their life insurance policy," said Brian Smith, President of the Life Settlement Institute. For example, proceeds of a life settlement may help a senior pay for long term care. Using just the 1020 policies relied upon in the study means that life settlements delivered $232 million more value to seniors than they would have received from the issuing insurance company. The study shows that seniors would have received $37.4 million if they surrendered their policy but instead received over $269 million from the life settlement transactions. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072910-2.htm Back to Top
67: STUDIES - Majority of Americans Believe the U.S. Economy and... ...Their Personal Financial Situations Have "Bottomed Out" Still, MetLife 2010 Study of the American Dream Finds Many Americans Feeling the Stress of Living Close to the Financial Edge NEW YORK--(BUSINESS WIRE)--According to The 2010 MetLife Study of the American Dream, released today, a significant number of Americans believe the U.S. economy and their personal financial situations have "bottomed out." One in four (26%) of Americans believe it will be worse this year than last -- a significant decline from 44% who said the same in 2009. Forty-one percent believe the U.S. economy will stay the same and one-third (33%) of Americans believe it will be better this year than last year. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072710-9.htm Back to Top
68: STUDIES - Metlife Study Highlights Cost-Effective Strategies... …Small Businesses Can Use To Build Competitive Benefits Programs and Help Improve Workplace Satisfaction MetLife, a leading provider of employee benefits, today announced the availability of a new resource designed to equip small business employers and brokers with practical benefits strategies to help motivate and retain their workforce while closely managing costs. Building A Better Benefits Program Without Breaking The Budget: Five Practical Steps Every Small Business Should Consider highlights the connection found between employees' benefits satisfaction and job satisfaction and addresses the implications given that only about one-third of small business workers (those working for employers with fewer than 500 employees) say they are very satisfied with their benefits offerings and only about half say they are very satisfied with their current job. The small business supplement to MetLife's 8th Annual Employee Benefits Trend Study is available at metlife.com/sbtrends2010. LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100719005905/en/MetLife-Study-Highlights-Cost-Effective-Strategies-Small-Businesses Back to Top
69: STUDIES - New Study Available from Eastbridge on Enroller Opinions … …Regarding Voluntary Business AVON, Conn.--(BUSINESS WIRE)--Eastbridge Consulting Group teamed up with the Enroller Resource Center (www.enrollerresoucecenter.com) to study the needs of independent enrollers involved in the voluntary market. Over 430 enrollers responded to the online survey--and shared some valuable feedback on their preferences! LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-080610-10.htm Back to Top
70: STUDIES - New Study Demonstrates Americans Are Outliving Retirement Savings... ...Money Resource Bills.com Outlines Eight Retirement SAN MATEO, CA, Jul 27 (MARKET WIRE) -- A recent study by the Employee Benefit Research Institute (EBRI) found that nearly one-half of Baby Boomers and Generation Xers are at risk for not having enough savings to cover basic retirement living expenses(1). Personal finance resource Bills.com recommends creating more realistic and aggressive savings strategies to close this anticipated retirement cash gap. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072810-1.htm Back to Top
71: STUDIES - With a Looming Shortage of Financial Advisors, Succession Planning… …is a High Priority for Industry Genworth Taps Matthew Matrisian for Expertise in Building Transferable Advisor Businesses RICHMOND, Va., July 26 /PRNewswire-FirstCall/ -- A recent study reveals that nearly half of today's financial advisors plan to leave the industry in the next few years*. At the same time, fewer young professionals are entering the profession each year. With these factors in mind, Genworth Financial Wealth Management (GFWM), a subsidiary of Genworth Financial, Inc. (NYSE: GNW), has hired an industry expert to build out a suite of succession planning tools, resources and services and deliver them to advisors in person, through events and online. LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072110-1.htm Back to Top
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