We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Annuity advocates react warmly to proposed SEC rule on VA disclosures

    November 22, 2018 by Brian Anderson

    The Securities and Exchange Commission’s recent introduction of a proposal that would modernize the process of disclosing information about variable annuities was met with cries of “it’s about time” from annuity industry advocates.

    The SEC proposal for new rule 498A under the Securities Act, released Oct. 30, would modernize disclosures by using a layered disclosure approach designed to provide investors with key information relating to the contract’s terms, benefits, and risks in a concise and more reader-friendly presentation, with access to more detailed information available online and electronically or in paper format on request.

    “This proposal is another important step in the Commission’s efforts to provide Main Street investors with better information to make informed investment decisions. I have participated in many roundtables with retail investors over the last several months, and investors have emphasized their preference for clear and concise disclosure,” said SEC Chairman Jay Clayton. “Providing key summary information about variable annuities and variable life insurance contracts to investors is particularly important in light of the long‑term nature of these contracts and their potential complexity.”

    A Nov. 6 legal alert from Eversheds Sutherland says the proposed rule is the most significant advancement in variable contract disclosure since the adoption of registration statement forms specifically designed for variable contracts. “The proposals (and accompanying requests for comment) are also an opportunity to further modernize a disclosure regime that has clearly become outmoded, costly, and, perhaps most importantly, ineffective,” the brief says. “At the same time, in some ways the proposals may present some challenges for the industry to implement cost-effectively from a resource perspective.”

    The brief concluded by saying interested parties will be well served to study carefully the details of what the Commission has proposed and to comment on those aspects that can be refined or improved.

    IRI, ACLI voice support

    A more consumer-friendly method of disclosing essential information about variable annuities has long been on the minds of many industry advocates.

    Cathy Weatherford

    “This has been a top priority for our industry for 10 years,” said Cathy Weatherford, Insured Retirement Institute (IRI) President and CEO. “Consumers should receive useful information about the products that they buy but the amount of currently required information in a typical prospectus is so complex and overwhelming that few consumers even read it. That helps no one.”

    Convincing the SEC to permit the use of a summary prospectus for variable annuities is among IRI’s top issue advocacy priorities and contained in the organization’s annual Advocacy Blueprint.

    Full statutory prospectuses for variable annuity products can range from 150 to 300 pages and contain language that most ordinary investors would find difficult to understand. As a result, full prospectuses are rarely used by most investors, with less than 3% of investors saying they always read some part of the prospectus.

    “A variable annuity summary prospectus is consistent with the Commission’s move towards layered disclosure,” Weatherford said. “This approach is designed to give investors the discretion to choose how much information to review and how to view it. It would provide investors only the essential information, while still providing investors access to more detailed information online or in hardcopy, at the investors request.”

    The proposed new rule would permit a person to satisfy its prospectus delivery obligations under the Securities Act of 1933 for a variable annuity or variable life insurance contract by sending or giving a summary prospectus to investors and making the statutory prospectus available online.

    “We are greatly encouraged by this action and will be scrutinizing the SEC’s proposed rule very carefully and will provide input into the rulemaking process,” Weatherford said. “We are grateful to SEC Chairman Jay Clayton for establishing this action as a priority and following through with this proposal.”

    Susan Neely

    The American Council of Life Insurers (ACLI) also voiced support for the proposed rule. “Life insurers’ efforts to help consumers make informed purchasing decisions complements the industry’s continuing commitment to act in the best interest of consumers and dovetails with another SEC initiative, the proposed Regulation Best Interest, which is slated to be issued next year,” said ACLI President and CEO Susan Neely. “We salute the SEC for taking these pro-consumer steps. ACLI has actively engaged with the SEC over many years on projects to enhance the transparency of life insurance industry products.”

    Still, not everyone is convinced the proposed rule will actually move the needle in terms of helping consumers understand variable annuities.

    “While I agree that variable products’ prospectuses are overwhelming for the consumer, and almost never read, I have to question how effective the summary prospectus will be,” said Sheryl Moore, President and CEO of Moore Market Intelligence and market research firm Wink, Inc. “The average non-variable annuity contract is 26 pages; how often is it read? While a non-variable annuity contract is inarguably less intimidating than the prospectus, I don’t think the consumer understands it any more.”

    Sheryl Moore

    The bottom line, Moore says, is that consumers don’t understand legalese. “The more we can communicate these complex instruments in easy-to-understand terms, and worry less about covering our butts, the more relationships we are going to forge with consumers and salespeople alike,” Moore said.

    The Commission has requested public comment on the proposed rule changes, as well as on hypothetical summary prospectus samples that it has published. The Commission has also published a Feedback Flier that it will use to seek investor input about what improvements would make the summary prospectus easier to read and understand, and what information investors would like to see included.

    The public comment period will remain open through Feb. 15, 2019.

    VA sales see rare bump in 2Q

    According to the LIMRA Secure Retirement Institute, fixed annuity sales have outperformed variable annuity sales in eight of the past 10 quarters, including the second quarter of 2018. After 17 consecutive quarters of declines, VA sales actually improved 2% in the second quarter, hitting $25.8 billion.

    “Despite introducing of new products and making changes to enhance their existing products to make them more competitive, companies are not having the same success with VAs as they are with fixed annuities,” said Todd Giesing. LIMRA SRI annuity research director. “However, the new and enhanced VAs, combined with the vacated DOL rule and better economic conditions, have led to slightly improved sales.”

    Originally Posted at Insurance-Forums on November 14, 2018 by Brian Anderson.

    Categories: Industry Articles
    currency