DOL Fiduciary News: July 11, 2016

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DOL Fiduciary Hearing in Texas Set for Nov. 17

ThinkAdvisor; July 8, 2016

The federal judge in Texas overseeing the three lawsuits filed in the state against the Department of Labor’s fiduciary rule has set a Nov. 17 date to hear oral arguments from both sides.

District Judge Barbara M.G. Lynn agreed on June 27 to allow the three lawsuits against the rule that are pending in the state to be consolidated, and both parties recently filed a motion asking that the judge render a decision in the case as soon as October.
(http://www.thinkadvisor.com)

Conning – Individual Life & Annuity Insurers Respond to Distribution Disruptions

HARTFORD, Conn., July 11, 2016 /PRNewswire/ -- Individual life and annuity insurers have been transforming their distribution and marketing operations in response to changes in consumer preferences, technological change, and now new regulations, according to a new study by Conning, Inc.

"The pace of distribution and marketing change in the life-annuity industry is accelerating, and insurers are scrambling to keep up," said Scott Hawkins, a Director, Insurance Research at Conning. "Insurers have been retooling their systems to respond to the digital imperative that has driven consumer marketing and distribution strategy across all industries. These efforts are supportive of both traditional agent distribution channels and the potential for greater direct distribution. Now, adding to that complexity, the retirement market also must deal with the significant changes brought about by the Department of Labor's proposed Fiduciary Rule."
(http://www.prnewswire.com)

Brokers becoming a primary distribution focus for life insurers

InvestmentNews; July 8, 2016 @ 12:14 pm

Life insurance and annuity carriers are turning their attention to brokers, primarily those in the independent broker-dealer channel, as the preferred distribution outlet among the universe of financial intermediaries, according to a new Aite Group research report (http://aitegroup.com/report/life-and-annuities-shifting-direct-consumer-channels).

Over the next two years, 11% of insurers report they have plans to introduce distribution through brokers, which would bring the percentage of carriers distributing product through this channel to 61%, according to the research and advisory firm.
(http://www.investmentnews.com)