Best Interest Standards Comprehensively Protect Consumers

Life insurers strongly support protections serving the best interests of customers, which can be meaningfully safeguarded with disclosure about services and material conflicts of interest. This approach provides an effective means to shield consumers and facilitate informed purchase decisions. The Securities and Exchange Commission’s (SEC) Regulation Best Interest (Reg BI) and Form CRS provide this degree of meaningful consumer protection. The National Association of Insurance Commissioners (NAIC) has worked closely with the SEC to develop parallel protections for annuities, which guarantee lifetime income. With this, consumers will have uniform state and federal standards. In addition to the significant protections of … Continue reading "Best Interest Standards Comprehensively Protect Consumers"

Investments in Infrastructure: Win-Win-Win

Life insurers are best known for helping families build a financial safety net that protects them through all stages of life. Helping people take care of the things that matter most is the most critical mission for members of the American Council of Life Insurers (ACLI). But ACLI members also make key contributions to society beyond our iconic financial security products. Life insurers play a major role in capital formation and liquidity in the financial marketplace. We are one of the nation’s largest sources of investment capital, with $6.5 trillion invested in the U.S. economy. Much of that is invested … Continue reading "Investments in Infrastructure: Win-Win-Win"

Fed Alternative to LIBOR Benefits Insurers, Consumers

Do you remember how global banks manipulated the London interbank offered rate (LIBOR) — an international benchmark interest rate — during the 2007-09 financial crisis? If that doesn’t ring a bell, don’t worry. Plenty of insurance industry advocates remember it well. Life insurers hedge interest rate risks on their investments in certain bonds that reference LIBOR. These hedging instruments help protect the value of life insurers’ investments from the effects of interest rate fluctuation. This process enables insurers to better manage financial risks, which helps them provide consumers with long-term financial protection products. However, because of the instability caused by … Continue reading "Fed Alternative to LIBOR Benefits Insurers, Consumers"

SEC Summary Disclosure Initiative Benefits Consumers, Life Insurers, Environment

The Securities and Exchange Commission (SEC) unveiled a sensible proposal last year that would: Provide key information about variable life insurance and variable annuities – life insurance and lifetime income tools that reflect movements in stock market – to consumers in a concise and reader-friendly method; Increase awareness and understanding of these vital financial security solutions and enable informed purchase decisions; Benefit the environment by reducing reams of unnecessary paper waste. This proposal, the Summary Disclosure Initiative for Variable Annuities and Variable Life Insurance, almost sounds too good to be true. Actually, it’s all true. And it’s very good: for … Continue reading "SEC Summary Disclosure Initiative Benefits Consumers, Life Insurers, Environment"

Ignore the Naysayers, SEC’s Regulation Best Interest Provides Strong Consumer Protection

The American Council of Life Insurers (ACLI) believes strongly in a best interest standard of care for all financial professionals. Fortunately, so does the Securities and Exchange Commission (SEC). The SEC introduced a strong standard of care in June when it unveiled its Regulation Best Interest (Reg BI). Reg BI is a robust measure that will protect consumers. It will also preserve their access to financial advisors that sell annuities, the one product that provides guaranteed lifetime income. People planning for retirement deserve good advice, and to choose the type of advice they get and how they’ll pay for it. … Continue reading "Ignore the Naysayers, SEC’s Regulation Best Interest Provides Strong Consumer Protection"