[LIFEWIRES]
LIMRA/LOMA to take “quantum leap” and branch into retirement research bitly.com/QRquantumleap
NAIC Looking At ‘Hybrid’ Products Individual life policies that provide coverage for long-term care are on the rise, and the National Association of Insurance Commissioners (NAIC) is looking into these so-called “combo” or “hybrid” products. Earlier this year, the American Council of Life Insurers (ACLI) expressed concern to NAIC over what it called confusion over the number of these hybrid products. The topic has been discussed at several meetings of NAIC’s Market Analysis Procedures Working Group. Although ACLI and NAIC have some concerns about combo products, the buying public has embraced them enthusiastically. Last year marked the fourthstraight year of double-digit gains for life combo products. Total new premium last year represented 11 percent of total new premium for individual life insurance. More than 86,000 life combo policies were sold in 2012, up 19 percent from 2011, according to LIMRA. Life/long-term care combo products are primarily life-based with long-term care riders that allow the policyowner to access the death benefit if the policyowner needs the money for long-term care services under the definitions common to most longterm-care policies. Similar to stand-alone long-term-care insurance, most combo policies in force are insuring women with a greater portion of policies issued to those in their 60s.
ADVISORS OPTIMISTIC ABOUT ECONOMY, CONCERNED ABOUT TAXES
Is the glass half full or half empty? Advisors said they are more optimistic about the economy now than they were in previous years, but they are worried about taxes and interest rates. These findings are from a recent survey by Curian Capital. More than half of those surveyed said they believe the economy will improve in 2013. Only about one fifth said they believe the economic crisis will be long term. But a few clouds remain on the horizon, namely unemployment, rising interest rates and increasing taxes, according to the advisors surveyed. Other highlights of the survey include: Time management was cited as the DID YOU
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biggest practice management challenge by the advisors surveyed. The majority (56 percent) of advisors do not use social media within their practices, and only six percent of respondents ranked social media as one of their top three sources of new leads. Apple iPads are the preferred mobile tablet device of more than 50 percent of advisors, while one third of advisors don’t use a tablet device in their practices.
COMPANIES ANNOUNCE JOB CUTBACKS
Pink slips are being handed out by the hundreds at some insurers. Genworth announced what it called an “expense reduction plan” that will eliminate about 400 positions, including 150 open positions that will not be filled. Earlier this year, Genworth announced a
NATIONWIDE HOPES TO HAVE the first life insurance/annuity crossover product on the market in 2015. Source: Nationwide
InsuranceNewsNet Magazine » July 2013
reorganization that it said would reduce financial risks at its mortgage insurance business and put that unit under a newly created parent company. Aviva plans to eliminate 2,000 positions, 6 percent of the company’s overall work force, over the next six months. Group Chief Executive Officer Mark Wilson said in a statement he realizes cuts are painful, but necessary to boost the company’s competitive position. Meanwhile, MetLife said it has eliminated about a third of its advisor jobs, or about 2,500 positions, since early 2012. Treasurer Eric Steigerwalt said the company had 7,500 advisors in February 2012 and now has around 5,000. Steigerwalt said the cuts make MetLife more productive and are saving a significant amount of money. However, he said he believes the number of advisors has reached a low point and should start to grow.
THRIVENT – NOT JUST FOR LUTHERANS ANYMORE
One of the nation’s largest fraternal benefit societies, Thrivent Financial for Lutherans, has decided to open its membership to all Christians. Thrivent’s membership voted to expand its reach. The change is expected to start at the beginning of 2014, and the company will be known simply as “Thrivent.” Thrivent is a fraternal benefit society and a Fortune 500 company that provides a full range of banking, investment and insurance products. The vote struck at the heart of the not-for-profit, which has wrestled for years with whether or not to expand Thrivent’s focus beyond the Lutheran faith amid declining loyalty to Christian church denominations. Thrivent has seen its assets under management grow, even as its membership has declined. The company reported its assets under management grew to $82.2 billion in 2012, up 8.4 percent from 2011. This growth came on the heels of a four-year streak that also saw its membership base drop to 2.5 million. This was a decrease of 500,000 members since 2002.