Insurable Interest Canadian Insurance Blog

What You Need to Know A lack of product access has been cited as a critical source of attrition. Access to internal resources and products can give advisors greater trust in the solutions they recommend. Smaller independent wealth management firms can focus on providing access to capital to mid-market businesses, Wirehouse advisors know that going independent allows them to earn more money and often provide their clients with a more comprehensive range of services and products. However, a common refrain among these advisors is that elite clients will not stay with them without ready access to banking solutions. Yet, it seems that many high-net-worth individuals are considering making this move anyway.  A recent PwC survey found that 46% of HNW investors plan to change wealth management providers or add new wealth management relationships in the next 12 to 24 months. That’s in addition to the 39% of respondents who said they had already switched or established an additional relationship. While there are many reasons that affluent clients switch advisors, a lack of product access has been cited as a critical source of attrition, with over 27% of clients who have made a change in the past three years saying that...

“When Americans file their tax returns, they expect their personal data and tax information are confidential,” Smith said in a statement. But between 2017 and 2021, Littlejohn “stole taxpayer information, and he stole a lot of it,” Smith said. “He gave it to The New York Times and ProPublica, who published articles containing that confidential tax information about President Trump and other notable figures. Mr. Littlejohn then destroyed evidence and obstructed law enforcement investigations.” Those notable figures included billionaires like Jeff Bezos, Warren Buffett, Elon Musk and Peter Thiel. ProPublica used the data to report on tax avoidance techniques used by the ultra-wealthy, such as Thiel’s use of a Roth IRA to grow shares of a nascent startup into a tax-free multibillion-dollar retirement haul. Current law “failed to deter Mr. Littlejohn from stealing and leaking private and sensitive taxpayer information,” Smith said. Moreover, Smith continued, “the Department of Justice only charged Mr. Littlejohn with a single count of unauthorized disclosure of private tax information. Increasing the punishment for this crime will result in better deterrence for potential criminals, and fewer crimes of this sort being committed.” The bill has 25 co-sponsors, all Republicans.

SelectQuote is still happy with the Medicare plan market, and the insurance agency is hoping for strong sales in the upcoming annual enrollment period. But one of the big Medicare plan issuers it represents has changed its commission payment schedule, and that has forced the company to adjust its Medicare plan sales strategy for the upcoming annual enrollment period, company executives told securities analysts Friday. The new commission structure “resulted in a temporary capital constraint, which prevented us from hiring a larger agent class,” Ryan Clement, SelectQuote’s chief financial officer, told the analysts during a conference call. The cut in the number of Medicare agents will probably lead to a 10% to 15% drop in Medicare plan sales this fall, Clement said. He noted that the issuer’s overall commission payment rate is still attractive. What it means: Clement’s comments add to the evidence that the upcoming annual enrollment period could be challenging because of factors such as changes in federal Medicare plan support levels, Medicare plan marketing rules and Medicare Part D prescription drug plan benefit design requirements. The annual enrollment period for Medicare Advantage plans and Medicare prescription drug plans for 2025 is set to start Oct. 15 and run through...

What You Need to Know Professional titles may have more to do with marketing goals than with everyday activities. Much of the current confusion stems from the rise of cross-selling. The author believes that advisors are fiduciaries and that salespeople sell. For me, after spending 27 years in career agency life insurance sales, one thing is clear: We were not and could not be considered fiduciaries. The training, incentives, compensation and rewards were based on sales production. When I entered the life insurance sales industry in 1992, we obtained an insurance license, not a securities license. We sold insurance and annuities. From the first employment interview, it was clear who we were, what we did, and how we were compensated. Life Insurance is a risk-sharing management tool. Life insurance was created to pool premiums to cover those who suffered a loss. Many paid premiums to help the few. It was a protection tool, not an investment tool. Originally, we had two types of solutions. If consumers decided their risk was temporary, they bought term life. If their risk was permanent, they bought whole life, and, later, universal life. Commercial annuities provided similar protection for people who lived longer than expected....