WINDSOR, Conn., June 18, 2013 — During his remarks to the advisory committee of the U.S. Treasury Department’s Federal Insurance Office (FIO), Robert Kerzner, president and CEO of LIMRA, LOMA and LL Global, told committee members that Americans are not necessarily making wise decisions with regard to their financial security.
Kerzner shared LIMRA research revealing life insurance ownership among American families is at a 50-year low and Americans’ savings habits are poor, with 80 percent of Americans believing they should be saving more for retirement. He also cited data that showed Americans recognize the value of life insurance and the importance of saving for retirement but other financial demands frequently undermine these priorities.
“We are pleased to provide the Federal Insurance Office with the pertinent data to help them better understand the financial challenges facing Americans,” said Kerzner. “LIMRA’s research has uncovered a growing gap in financial security for American families at every stage of their lives. We hope these facts will help leaders and policymakers in Washington develop the appropriate strategies to encourage Americans to make prudent decisions to ensure their families’ financial security throughout their lives.”
The Federal Advisory Committee on Insurance (FACI), which provides recommendations to the FIO, requested Mr. Kerzner to speak at their quarterly meeting in Washington DC on June 12, 2013, seeking better understanding on the changing demographic trends in the U.S. population and how these trends are affecting the financial services industry.
“The study of behavioral economics proves that people with a present bias choose immediate gratification over long-term well-being,” noted Kerzner. “It is vital for our nation that our industry, legislators and policymakers work together to help Americans overcome this present bias and make the financial choices that will provide them long-term financial security.”
Over the past few months, LIMRA has been providing relevant research and data to the FIO to ensure it has a holistic and accurate view of the industry. This research was included in its first annual report, published June 12, 2013.
To view the webcast of the entire meeting, please visit: Federal Advisory Committee on Insurance
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