Allianz Unveils New FMO Distribution Model
July 11, 2011 by N/A
MINNEAPOLIS–(BUSINESS WIRE)– Allianz Life Insurance Company of North America (Allianz Life) today announced the launch of Allianz PreferredSM, a new model for distributing fixed index annuities (FIAs) that will give qualifying Field Marketing Organizations (FMOs) added support through increased education, training and resources for third-party oversight, as well as access to exclusive products. The first of these products will be launched on August 2.
Allianz Preferred offers an open invitation to all field marketing organizations that qualify to deepen their commitment to Allianz Life FIA distribution. They must commit to quality, including hiring a formal Field Compliance Officer and Field Suitability Officer who participate in ongoing training from both Allianz Life and the industry. In addition, they must agree to a review and approval process of advertising prepared by the FMO, including review of all non-Allianz Life materials by an Allianz Life-approved third-party ad review firm, which Allianz Life will pay for. FMOs also must meet certain production requirements and must not be affiliated with a distribution group.
In exchange for these commitments, Allianz Preferred members will be eligible to be part of a unique FMO and agent compensation structure. Financial professionals who qualify and are contracted with Allianz Preferred may sell innovative Allianz Life products that are exclusive to the Allianz Preferred program.
“As we continue to see significant changes in the economic, regulatory and distribution environments that demand a bold response, the launch of Allianz Preferred is an important step,” said Allianz Life President and CEO Gary C. Bhojwani . “Allianz Preferred reflects our belief that when we invest in agents and FMOs that are most dedicated to a relationship of reciprocal commitment with Allianz, we strengthen sales practices, help ensure uniform compliance with regulations, and continue our high service standards for all policyholders.”
With FIA sales setting new records in 2010, securities licensed professionals are among the fastest growing FIA sales channel. FIAs were also the number one selling type of fixed annuity for the second quarter of 2010, a first for the industry according to LIMRA. These trends, along with more stringent regulatory standards – lower tolerance for replacement sales, greater scrutiny on source of funds for purchasing FIAs, and more oversight of advertising value-added services, recruiting and sales practices – require a new relationship model between insurers and FMOs, something that Allianz Preferred addresses.
“Allianz Life has been an industry leader since the very inception of FIAs, and we have also been leaders in building the highest suitability standards for FIA sales,” Bhojwani added. “Allianz Preferred is one more step in a process of raising the bar with our distribution, which we believe will help qualified financial professionals to bring the benefits of FIAs to consumers who are increasingly seeking guaranteed lifetime retirement income.”
About Allianz Life
Allianz Life Insurance Company of North America has been keeping its promises since 1896. Today, it carries on that tradition, helping Americans achieve their retirement income goals with a variety of annuities and life insurance products. As a leading provider of fixed index annuities, Allianz Life is part of Allianz SE, a global leader in the financial services industry with nearly 155,000 employees worldwide. Based on its revenue, Allianz SE is the 20th largest company in the world (Fortune Global 500, August 2010).
Allianz Life Insurance Company of North America offers insurance and annuities in all states except New York. Variable products are distributed by its affiliate, Allianz Life Financial Services, LLC, Member FINRA, 5701 Golden Hills Drive, Minneapolis, MN55416-1297. In New York, products are issued by Allianz Life Insurance Company of New York, New York, NY.
Allianz Life Insurance Company of North America
Source: Allianz Life Insurance Company of North America