A.M. Best Special Report: Life Insurers Hunker Down as Market Turmoil Continues

2008 was among the worst in memory for life insurers’ operating performance—the key drivers being substantial realized and unrealized losses on investment portfolios, higher costs of capital and a declining revenue base. These trends clearly are continuing and could deepen well into 2009 and beyond. A.M. Best Co.’s recently issued special report, “Life/Annuity Review & Preview 2009: U.S. Life Insurers Hunker Down As Market Turmoil Continues,” expresses the rating agency’s current perspective on the industry.
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Arizona residents claim fraud on EquiTrust annuity

Two Arizona residents have filed a class action lawsuit against an Iowa insurance agency, claiming the company engaged in fraudulent business and marketing practices regarding its sales of indexed annuities. The complaint, filed Jan. 12, claims EquiTrust Life Insurance Co. sold an annuities package that matured after the policyholder’s 105th birthday, thereby protecting the firm from risk, while damaging the financial security of the policyholder... Phoenix Business: Arizona residents claim fraud on EquiTrust annuity
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Forecast for Life Insurance Industry Challenging, LOMA Resource Survey Finds

With the economy in crisis, the 2009 forecast for the life insurance industry is challenging, according to executives surveyed by LOMA's Resource magazine... According to participants: In 2009, life insurance sales will hold steady, premium growth will be modest, but profits will decrease. Stock market volatility and the implosion of venerable financial institutions in 2008 have made consumers wary; consequently, variable products will be vulnerable as consumers move to more fixed products with guarantees. On
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SEC Reviewing 4,000 Comments on Indexed Annuity Rule, Official Says

The regulation of indexed annuities and 'synthetic' annuities were among the topics addressed by SEC Director of Investment Management Andrew J. Donohue in a keynote speech at the American Law Institute-American Bar Association Conference on Life Insurance Products in Washington, D.C., November 13 and 14. SEC Reviewing 4,000 Comments on Indexed Annuity Rule, Official Says Source: Financial Planning
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The regulation of indexed annuities and 'synthetic' annuities
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Life Planning as Part of Retirement Planning

Helping employees build a nest egg is essential, but it's only part of the total retirement planning equation. Longer life spans mean that having a successful retirement takes not just financial planning, but "life planning." However, despite the fact that today's retirees have two or even three decades of active years ahead of them, few really think about how they're going to spend that time and what their retirement will mean for their family. Life
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Life Insurance & Estate Planning - What Wealthy Families Want to Know

An estimated $41 trillion in US assets will change hands by 2052.1 Families, especially wealthy families, have specialized estate planning needs but can be confused by complex estate planning strategies full of legalese so Pacific Life Insurance Company and Pacific Life & Annuity Company now offer a kit of “plain English” materials to show how life insurance can stabilize and strengthen estate planning techniques. Life Insurance & Estate Planning - What Wealthy Families Want to
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The Fixed Annuity Income Riders

Annuity income riders are designed to provide safety of investment, predictable, guaranteed, lifetime income and peace of mind to people who are worried about running out of money in retirement. The Fixed Annuity Riders Source: Insurance News Net
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Amid growing concerns over abusive sales practices by insurance agents, the Securities and Exchange Commission has proposed to regulate the increasingly popular indexed annuity as a securities product, a move that
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Experts Say There Is a Need to Reformulate the Immediate Annuity

The immediate annuity is a double-edged sword. On one hand, the product provides guaranteed income immediately during retirement that can last a lifetime. Financial planners say this makes the immediate annuity a very good thing for people who live beyond their expected life span. People who do not have the financial skills to make their savings last a lifetime, and those who simply want a regular paycheck, should also consider immediate annuities.Experts Say There
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