Thursday, August 4, 2016

Partners Advantage Perspectives: How Our Organization is Preparing for the DOL Fiduciary Rule

By: James Wong, President
Partners Advantage Insurance Services, LLC

As it pertains to annuity business, it appears to us that life insurance only licensed agents will likely need to have one key IMO relationship. At Partners Advantage, we will likely have more select and deeper relationships with financial professionals and agencies due to the heightened risks all the way through the distribution chain. The fact that we already have well-trained compliance/suitability structure in place and a general counsel on our senior management team will be a benefit. We plan to increase staffing in this area  to adhere to regulations and support our distribution network. We anticipate IMOs will need to be structured more like a broker-dealer in the future, having additional reviews, checkpoints and monitoring (while continuing to offer professional development, marketing support and sales training).

We are having many conversations with our key carriers and they are looking to provide enhanced solutions within their core distribution. Having equity ownership in an RIA over many years has been beneficial for our organization and it may also be a part of the solution as we move forward.

Life insurance has been and will continue to be a key part of our business moving forward. We see the protection story becoming even more relevant in the future. Our structure and large staff enables us to also help other organizations expand and diversify their offerings through life insurance. Our track record of providing knowledgeable in-house underwriting and advanced markets experience will be the focal point. In a world of compressed margins and more oversight, we hope to capitalize on technology to help agencies and agents streamline the process and create a better customer buying experience.

We look forward to continuing to grow our business through our support of independent insurance professionals and agencies such that together we can meet the needs within our industry.

For financial professional use only.  Not for use with the public.