Benefits of Value-Add Continuing Education: A Quest CE Webinar This webinar will feature an in-depth discussion of our Financial Adviser Survey and the benefits of value-add continuing education. Quest CE will offer insight backed by statistics and shared experiences with some of the top wholesalers in the industry, to reveal ways to increase sales and strengthen relationships by offering continuing education.
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Insurance Licensing Update: North Carolina
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Carriers Looking Past Variable Annuities and onto SALBs According to an InvesmentNew’s article, carriers who are interested in attracting fee-based and fee-only advisers are looking past variable annuities and onto Stand-Alone Living Benefits (SALB) that combine guaranteed-lifetime-withdrawal benefits from variable annuities with an investment account managed by a fee based or fee only adviser. SALBs first made their appearance to the financial services industry in 2008, but the hype slowly died down, until now. They begin with investors turning over a “lump sum of cash” to their advisers for a stream of retirement income. If the investment account is drained through too many withdrawals or eaten away by the market, the insurance begins. Investors and advisers alike will have to understand that SALBs will differ depending on who is issuing the insurance coverage. Noel Abkemeier, a consulting actuary at Milliman Inc. says “The reason for creating SALBs is to broaden the tools for advisers. Advisers have a disinclination to use insurance products.” The only concerns for SALBs are the fear that complexity will deter the acceptance of the reemergence of this adviser tool, and there is also a concern about regulatory issues. Tamiko Toland, managing director of retirement income consulting at Strategic Insight said “the regulatory concern is really about the fact that the insurer doesn't have the same kind of control as it does with variable annuities. The regulatory issues will eventually be resolved, but another key here is getting this style of guarantee out to a different clientele — to reach out to a set of advisers who may not be all that familiar with or crazy about variable annuities.” Click here to read the complete InvestmentNews article: “Carriers look beyond variable annuities” |
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Wholesalers Must Pitch Cost When Attracting Plan Advisers InvestmentNews reported that wholesalers who are looking to attract retirement plan advisers must develop a new arsenal of skill and sales pitch contrary to how they present their retail products. According to a kasina study, fees and expenses rank highest on the list of plan adviser priority when meeting with wholesalers to discuss plan investment options, and performance places second. Risk on the other hand, is behind both fee and performance topics. This is on the complete opposite spectrum of advisers who focus on retail business, who value risk as their highest priority when appraising any investments, with correlation to other assets as a close second. Hari Krishnaswami, product manager for kasina LLC's adviser research said “Retirement plan advisers are also less accepting of white papers, online calculators and training programs — the usual items they might see from wholesalers. About 86% of the 459 surveyed advisers said they don't consider these extras to be very important to their defined-contribution business. Instead, they're more interested in building their DC business and expanding their pool of assets, seeking help with client referrals. Advisers also seek tools and ideas for prospecting new clients.” Wholesalers must also think about how they market to plan advisers, instead of how they market to advisers specializing in retail. Plan advisers want to receive information in a way that makes sense to their business. A great example of this is the fact that 61% of plan advisers surveyed in the kasina study would optimally receive their sales ideas through the internet, while 70% of advisers said concerning items they are likely to share with plan sponsors, they would prefer a tangible hard copy. Krishnaswami emphasized that “The quality of the marketing makes a difference and influences advisers' decisions.” Click here to read the complete InvestmentNews article: |
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The Extension of Cheap Money Policy May Lower Interest in AnnuitiesA recent InvestmentNews article revealed that the Federal Reserve's commitment to maintaining low interest rates until 2014 may deter agent interest in annuities. The Federal Reserve announced their target range for federal funds rates at 0% to .25%. Low rates have already begun to cause turbulence for life insurance companies making it harder to create profitable rates for their corporate-bond investments and "to pay attractive crediting rates on fixed and indexed annuities." Ultimately, this InvesmentNew's article predicts this trend will lead to a smaller profit margin for life insurers, annuities will endure further edits, and lower commission for agents. Randy Binner, an analyst at FBP Capital Markets Corp. said "We're in the same boat as before: Prices are going to go even higher, and the guarantees are going down.""This does hurt profits instantly, though. Insurers are making less of a spread." There is still hope for clientele who have held onto their old fixed annuities in receiving payout benefits. Robert Kline a rep with National Financial Partner Corp suggested "If you have a lot of old annuities on the books, you might be able to add to them and get a higher rate on the contribution." Click Here to read the complete InvestmentNews article: “Fed's low interest rates could lower interest in annuities”
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Georgia Insurance Licensing UpdateThe Georgia Office of the Commissioner of Insurance (OCI) announced that they now require the below documents added to all licensing applications. These documents can be submitted either electronically or by mail.
These two documents must be successfully submitted before any application can be processed. Anyone with the proper authority applying on behalf of a partnership, employee, corporation, etc, must be in charge of completion and submission of these documents, before the application is processed. For more information concerning this and addition Georgia licensing updates visit http://www.oci.ga.gov |
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Quest CE Releases its 2012 Insurance and Designation Course Catalog
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