Americans’ wealth collectively fell by a "jaw-dropping” $10 trillion by the end of the third-quarter of 2008.1 The down cycle highlights the impact market volatility can have on affluent clients’ wealth transfer plans. When assets are worth less, well-intended estate plans can have unintended results.

New Kit from Pacific Helps Insurance Professionals Work with Affluent Clients in Difficult Times
Source: Earthtimes

Regulators on Thursday denied the life insurance industry's request to ease rules specifying how much cash they must set aside to absorb potential losses and pay claims.

Regulators Deny Insurers' Request to Relax Rules
Source: Yahoo! Finance

Intel has filed a $50 million lawsuit against insurance carrier American Guarantee and Liability Insurance, alleging breach of contract... The alleged breach involves the insurance firm's failure to pay for Intel's legal defense related to antitrust lawsuits filed by rival Advanced Micro Devices and consumers.

Intel, in the lawsuit filed last week in the U.S. District Court for Northern California, alleges that American Guarantee did not step up to the plate and begin paying for the chip giant's legal costs after it had exhausted $66 million in insurance policies provided by two other insurance carriers. (To read the entire lawsuit, click here for a PDF...)

News.com: Intel files $50 million suit against insurance firm

There has been increasing support among investment advisors to formalize business practices governing the handling of client assets as a result of Bernard Madoff's alleged Ponzi scheme. Specifically, some are calling for clientassets to be handled by outside custodians. Others say the Securities and Exchange Commission needs to step up its oversight and enforcement...

OnWallStreet: Calls for New Rules After Madoff

NEW YORK (MarketWatch) -- Shares of insurer Allstate fell 20% in midday trading Thursday and hurt shares of industry rivals after it posted a big fourth quarter deficit and said investment losses and annuity costs hit hard. The news sent shares of companies like Lincoln National, Principal Financial, Prudential, and XL Capital down by double digits...

MarketWatch: Allstate pressures, bank losses drag down financials

SAN FRANCISCO (MarketWatch) -- State insurance regulators said late Thursday that they denied a request from the life insurance industry to relax capital and surplus requirements...

MarketWatch: Life insurers' request for lower capital requirements denied

Novarica, a research and advisory firm, singled out MassMutual, AXA Equitable, and New York Life for their strong online customer service offerings in a new report published today, Online Customer Service at Top US Life/Annuity Insurers.

MassMutual, AXA Equitable, and New York Life Praised for Strong Online Offerings in New Novarica Report
Source: Insurance News Net

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

MetLife Inc.’s Robert Henrikson, chief executive officer of the biggest U.S. life insurer, said bankers are “knocking on our door” pitching deals as the company seeks to add customers beyond its home market... MetLife, which bolstered its finances with a $2.3 billion share sale in October, is a favorite pick by analysts including Sanford C. Bernstein & Co.’s Suneet Kamath to acquire businesses from distressed competitors as investment losses deplete their capital. The life insurance industry may undergo “significant” consolidation after losing $77 billion in surplus last year, according to consulting firm Conning & Co.

“We would not be surprised to see MetLife pursue a transformational deal in 2009,” Kamath said in a Jan. 16 research note. “MetLife is likely the best-positioned to pursue merger and acquisition opportunities.” He said the insurer may bid for units being auctioned by American International Group Inc. as that firm raises cash to repay a government loan...

Chief Financial Officer William Wheeler said in September MetLife is “very aggressively” seeking expansion outside of the U.S...

Bloomberg: Henrikson Sees Opportunity as Bankers Call on MetLife

Allstate Corp. will cut 1,000 jobs at its life insurance operations and review the products sold by the unit after losses on investments caused the company’s first unprofitable year as a public firm. Shares dropped 12 percent in extended trading.

The fourth-quarter net loss of $1.13 billion, or $2.11 a share, compares with a profit of $760 million, or $1.36 a share, in the same period a year earlier, the Northbrook, Illinois- based insurer said today in a statement. Excluding the declines in the value of some holdings, Allstate earned 97 cents, missing the $1.35 average estimate of 18 analysts surveyed by Bloomberg.

Allstate joins competitors Progressive Corp. and Travelers Cos. in writing down investments...

Bloomberg: Allstate Posts $1.1 Billion Loss, Cuts 1,000 Jobs

CBS says it will be launching a new finance site this spring called MoneyWatch.com

A preview of the site is available at www.MoneyWatch.com. CBS says the personal finance property will be expanded and featured throughout CBS broadcast, radio and mobile platforms. The site will carry business and financial news from CBS Evening News, 60 Minutes and The Early Show...

WebProNews: CBS To Launch New Finance Site

Shares of life insurers jumped more sharply than broader markets Wednesday amid indications that regulators may ease requirements governing how much of a financial cushion life insurers must maintain to absorb potential losses and pay claims...

Forbes: Life insurers jump amid review of capital rules

Billionaire financier George Soros told CNBC he disagrees with plans to create a new government entity to buy up troubled bank loans and believes former Treasury Secretary Henry Paulson mis-managed the first rescue attempt of financial institutions.

"That (the "bad bank" proposal) will help relieve the situation, but it will not be sufficient to turn it around," Soros said during a live interview at the Davos economic conference in Switzerland. Instead, Soros said he would create a "good bank" and re-capitalize the good assets...

Yahoo! Finance: Soros: 'Bad Bank' for Troubled Assets Is Bad Idea

Normally I don't get quite as upset about things like this as many folks do, as I often think it is indeed a necessary part of doing business, and feel the need to weigh gut reaction populist anger with business reality. BUT, this is just beyond ridiculous: AIG is paying about $450 million to 400 workers within their derivatives unit as part of a "retention pay" scheme...

Seeking Alpha: AIG's at It Again with Ludicrous $450M 'Retention Pay' Scheme

Proposal to Help Firms Endure Recession Set for Final Vote: Life insurance companies moved a step closer yesterday to being allowed to operate with thinner financial cushions as they try to weather the economic crisis.

A committee of state regulators endorsed proposals that would make it appear that insurers have more capital to withstand financial setbacks and meet their promises to policyholders. The action paved the way for a final vote tomorrow by the leadership of the National Association of Insurance Commissioners, an assembly of state regulators...

Washington Post: Regulators Endorse Plan to Lower Insurers' Cash Cushions

Rebuffed by regulators in its efforts to raise homeowner rates by nearly 50 percent, Florida’s largest private insurer of property announced Tuesday that it would shutter all its property insurance business in the state.

The decision, by State Farm Florida, a subsidiary of the giant insurer State Farm Mutual, affects more than a million policyholders and is another financial setback to a state with one of the nation’s highest foreclosure rates and rising unemployment. It could also increase the burden on a state-created insurance company, which must accept customers if they have nowhere else to go...

New York Times: Big Insurer Says It Will Quit Florida Property Market

Charles Schwab & Co. has launched Real Life Retirement Services, to provide practical help for people making the transition to retirement.

A Schwab news release said the new approach to retirement education is designed to answer questions about issues such as whether workers can afford to retire, their retirement expenses, when they should begin Social Security benefits, and how best to generate income during retirement.

"We have a different point-of-view from other financial firms in how we approach retirement. For most people, retirement isn't about hang-gliding or hitting the golf course every day. People dream of balance - enjoying a comfortable lifestyle, covering health care costs, spending time with family and friends, and making sure they won't run out of money," said Mark Jamison, vice president, Charles Schwab, in the news release. "We chose to build a service that addresses real life challenges people are facing today, which typically don't involve a life sailing around the world."

The new program starts with a free consultation. To help deal with the in-retirement income needs, Schwab said it will help investors develop the proper portfolio with access to income funds, help find appropriate fixed income investments, and provide an annuity cost comparison tool and a "rollover concierge" to help the investor consolidate multiple accounts.

PlanAdviser: Schwab Unveils Real Life Retirement Services Product

Whether your organization is a “feeder fund” or investment advisor, the next question becomes: will your directors and officers (“D&O”) or professional liability (“E&O”) insurance policy protect you from these...

Law360 (subscription required): You Recommended Madoff — Are You Covered?

Did you know that nearly everyone will be touched by a long term care situation, either their own or with a close family member? Research from the U.S. government has found that the number of people who will need long term care in their lifetime is rapidly increasing. In 2008, the government found that about 9 million Americans over the age of 65 would need long term care services. By 2020, that number will increase to 12 million. While most people who need long term care are age 65 or older, a person can need long term care services at any age! Forty percent of people currently receiving long term care are adults 18 to 64 years old.

U.S Government Finds 40% of People Currently Receive Long Term Care are 18-64; Numbers Continue to Rise
Source: Yahoo! Finance

Scorned by stocks, investors are flocking to products that promise guarantees.

But will those guarantees become the next house of cards to topple? Even troubled U.S. insurers are still paying claims to policyholders, but some experts fear that the industry isn't adequately protected for the level of guarantees it is providing.

A Question of Risk: Annuities Remain Long-Term Decision, and Research is Key
Source: Chicago Tribune

Retirement investors have long viewed annuities as an effective way to protect their nest egg. But the recent financial crisis has highlighted an inherent paradox: While annuities offer safety and guarantees, their benefits are tied to the financial strength of an insurer. If the company fails, you could be looking at a loss in the very part of your portfolio that you were counting on to be rock solid.

Annuities were considered the ultimate safe investment - until insurers started wobbling.
Source: CNN Money

Count life insurance among the many products and services that are on sale. A 40-year-old male nonsmoker can buy a $500,000, 20-year term-life policy for as little as $345 per year if he's in perfect health, or $455 if he's slightly overweight or has an elevated cholesterol level. So it's a great time to buy if you need coverage or to reshop if you have a policy.

Life Insurance for Less
Source: Washington Post

Many Americans, particularly those within the Retirement Red Zone -- the five years before and after retirement -- are facing a new reality, with significant declines in their 401(k) plans and retirement portfolios as a result of the recent stock market meltdown. They want to know -- what do I do now? And now more than ever, Americans are seeking professional guidance as they face significantly reduced retirement nest eggs and the prospect of a smaller retirement income stream.

Conversations About Retirement: What Do I Know?
Source: Yahoo! Fince

Supplemental health insurance can be an affordable safeguard against the threat of financial insolvency related to major illness or injury many Americans face today, according to a new white paper study released by Conseco Insurance Group.

New Study Says Supplemental Insurance is a Must in Current Economy
Source: PR Newswire

The Hartford Financial Services Group, Inc., one of the nation’s largest diversified financial services companies, today announced that its Life operations, for the 13th year in a row, have won an impressive number of customer service awards. The seven 2008 DALBAR Awards received this year highlight the company’s focus and dedication to consistently deliver exceptional customer service.

Hartford Life Recognized for Superior Service in 2008
Source: Business Wire

Genworth Financial said Thursday it has agreed to sell its Mexican insurance business, Genworth Seguros Mexico SA de CV, to HDI-Gerling International Holding AG for an undisclosed sum.

Genworth Sells Mexican Insurance Business
Source: Forbes

Concerned about the state of their balance sheets, life insurers are playing in a high-stakes game show, one where the winning jackpot is ensuring solvency.

Life Insurers Reach Out to NAIC, Treasury for Lifelines
Source: Insurance News Net

Bob MacDonald, former CEO of Allianz Life of North America and financial services contrarian, claims that a black hole exists in the life insurance industry---a shameful absence of agent training.

MacDonald, writing in his blog, www.bobmaconbusiness.com, charges that the life insurance industry is adrift in a sea of problems and challenges including massive loss of income, declining employment, sagging credibility and eroding political clout.

Bob MacDonald Identifies the Black Hole of the Life Insurance Industry: Agent Training
Source: PR Web

MassMutual Financial Group, the 157- year-old U.S. insurer owned by its policyholders, plans to pay about $100 million for a stake in Yingda Taihe Life Insurance Co., two people familiar with the matter said.

MassMutual May Pay $100 Million for Stake in Chinese Insurer
Source: Bloomberg

Less than 1% of all term life insurance policies ever pay anything to the policy owner's loved ones. As a result, most of the money people invest in these policies hoping to provide for their families after they are gone is wasted and only goes to increasing the profits of that insurance company. Why are the pay out numbers so low? What can consumers do to improve their odds? Finally, a new book is answering those and other important questions about life insurance.

Renegade Life Insurance Expert's New Book Reveals How to Get the Most from Your Life Insurance

A majority of Americans may be skeptical about the motives of insurers and other financial services companies.

Survey: Many Distrust Financial Services Companies
Source: National Underwriter (subscription required)

President Obama is working on a comprehensive bank-rescue package that will be unveiled in the next few weeks, according to Timothy Geithner, Obama's nominee to be the nation's next Treasury secretary.

Obama to unveil new rescue plan: Geithner
Source: Market Watch

To the list of industries seeking government relief, add another: life insurance.

Battered by the financial crisis, life insurers are urging regulators to let them operate with thinner financial cushions -- the capital they must hold to absorb financial shocks and cover their obligations to policyholders.

Life Insurers Seek Lower Cash Cushions
Source: Washington Post

Annuities, or contracts with insurance companies that usually provide guaranteed income streams, can seem like the holy grail of retirement planning. They offer a safer option for investors worried about the fluctuating stock market or low returns from bonds. But they also tend to be expensive and are sometimes so complicated that even financial advisers have trouble understanding them.

Annuities: the Answer to a Weak Stock Market?
Source: U.S. News & World Report

National Life Insurance Company, a member of National Life Group, recently launched Investor Select, a new variable universal life product. With more riders and new funds, this VUL product offers more flexibility and individual policy customization to meet a wide variety of personal and business insurance needs.

National Life Insurance Company Unveils New Variable Universal Life Product
Source: Insurance News Net

As we all know, 2009 promises to be an extremely challenging year for insurance and investment sales in many areas. Challenging need not mean unprofitable, however, nor unsuccessful. No matter the challenges of the past, the best businesspeople have always found ways to overcome them -- and not just outlast them. How about you? Do you want to succeed and not just survive?

Making the Most of a Challenging Year
Source: Producers Web

CSC today announced that Jackson National Life Insurance Company (Jackson) of Lansing, Mich., is the first insurer to deploy CSC's Claims Management Accelerator to streamline its life and annuities claims processes. Part of Jackson's focus on continuous improvement, the implementation helped the carrier increase automation and speed claims handling.

First Deployment of CSC Software Speeds Claims Processing at Leading Life Insurer
Source: PR Newswire

Nationwide Insurance announced today at NASCAR Nationwide Series media day that NASCAR racing superstar, Dale Earnhardt Jr. and his company JR Motorsports will be featured in a new marketing campaign that will begin in February.

Dale Earnhardt Jr. and JR Motorsports to be Featured in Nationwide Insurance 2009 Marketing Campaign
Source: Business Wire

A coalition of insurance companies and independent marketing organizations has filed suit in federal court to overturn Rule 151A, the newly published rule by the Securities and Exchange Commission that classifies indexed annuities as securities.

Coalition Sues SEC Over New Annuities Regulation
Source: Insurance News Net

The year 2009 will probably go down as one of the most significant in the financial services industry.

The credit and liquidity crisis of 2008 has not fully played out so, as the new year unfolds, the crisis will continue to create havoc on company financials and market flexibility. In addition, the consumer pull-back on spending will continue to cramp the overall economy.

How the Life and Annuity Business Will Fare During the Crisis
Source: National Underwriter (subscription required)

Although some states may exclude life insurance proceeds from death taxes, the IRS does not. For federal estate tax purposes, a taxable estate includes virtually anything that is owned at death, including death benefits from life insurance owned by the decedent or his or her estate. Therefore, it’s important to make clients aware of the role that life insurance can play in their estate planning.

Advantages of an Irrevocable Life Insurance Trust
Source: Life Insurance Selling

The Equities business of UBS Investment Bank announced today that it has entered into a binding agreement to purchase the commodity index business of AIG Financial Products Corp, including AIG’s rights to the DJ-AIG Commodity Index. This commodity index business is comprised of a product platform of commodity index swaps and funded notes based on the benchmark Dow Jones-AIG Commodity Index (DJ-AIGCI).

UBS Investment Bank Enters into Agreement with AIG to Acquire the Commodity Index Business of AIG Financial Products Corp
Source: Business Wire

Insurers Question SEC Jurisdiction Over Index Products

Insurance companies are challenging a Securities and Exchange Commission rule that treats indexed annuities as securities and forces them to accept federal regulation.

The product offers a return tied to the performance of a stock index and typically offers protection if stocks do poorly. Indexed annuities are mostly sold by insurance agents who are subject to state regulation...

WSJ: Annuity Rule Challenged

Finance textbooks speak of many kinds of risk — inflation risk, principal risk, market risk, interest rate risk, currency risk, tax risk, etc. Yet, when the subject is retirement income, none of those things mean much. There’s really only “one big risk”: What are the chances that my account balance will fall to zero before my blood pressure does?

Longevity Annuities Could Redefine the Retirement Income Planning Landscape
Source: Life Insurance Selling

The Federal Reserve on Thursday approved Protective Life Corp., an insurance and financial services firm, as a bank holding company.

The change gives Protective Life assess to the Fed's emergency lending program if it needed a quick source of cash. It also would help make the company eligible to try to tap the Treasury Department's $700 billion financial bailout program.

Fed Approves Protective Life as Bank Holding Co.
Source: NY Times

A shaky stock market ate away $26 billion of the capital and surplus of the nation's 900 life and health insurers during the first nine months of last year, according to a new analysis by TheStreet.com Ratings.

Life Insurers Take a Hit From Shaky Market
Source: Yahoo! Finance

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 the upside, whole life products from strong companies will do well. Term insurance will continue to do well as consumers look to keep expenses at a minimum. Immediate and fixed deferred annuity sales will be strong. Variable annuity products with guaranteed minimum withdrawal benefits (GMWB) or principal protection features will weather the storm, but expect to see new products in the very near future that offer reduced guarantees at a greater cost. The battle will intensify over who should regulate insurers-- the feds, the states or both...

PR News Wire: Forecast for Life Insurance Industry Challenging, LOMA Resource Survey Finds

Bernie Madoff's investment fund may never have executed a single trade, industry officials say, suggesting detailed statements mailed to investors each month may have been an elaborate mirage in a $50 billion fraud.

An industry-run regulator for brokerage firms said on Thursday there was no record of Madoff's investment fund placing trades through his brokerage operation...

Reuters: Madoff's fund may not have made a single trade

North American application activity for individually underwritten life insurance declined -8.9% in December, year-over-year according to the MIB Life Index . Led by a -4.3% decline in overall fourth quarter activity, 2008 year-to-date application activity was off -2.5% as compared to last year. Those applying for individual life insurance ages 60+ were in the only growth demographic, up +4.3% YTD as compared to 2007.

MIB Life Index Reports North American Life Insurance Activity Off 8.9% in December
Source: PR Newswire

PruLife Return of Premium (ROP) Term is now available in New York State. Issued by Pruco Life Insurance Company (Pruco Life Insurance Company of New Jersey in NY and NJ) and previously approved in most states (not approved in MN, WA and UT), PruLife ROP Term offers consumers the powerful combination of valuable death benefit protection and the guaranteed return of all premiums paid if the insured lives past the end of the level premium-paying period selected (15, 20 or 30 years). Returned premiums do not include any amount of outstanding loans with interest. Policies lapsed or cancelled before the end of the initial level premium-paying period will result in only a partial return of premium or no return at all.

PruLife Return of Premium (ROP) Term Now Available in New York State
Source: Yahoo! Finance

"Swiss Re's economists predict a severe recession until mid-2009 in industrialized economies, including the United States and Europe. In emerging markets, slower growth is expected, but not a full-blown recession. In 2008, the insurance industry successfully weathered the financial turmoil. As market uncertainty could continue well into 2010, the industry needs to preserve capital to remain resilient."

Why Now is the Time to Bolster Your Competitive Intelligence Network
Source: Producers Web

Concern about the economy is causing many Americans to reconsider their approach to Valentine's Day. A new survey commissioned by the nonprofit LIFE Foundation reveals that seven in ten (70%) would forego celebrating Valentine's Day this year in exchange for greater financial peace of mind(1). Of those Americans who typically buy Valentine's Day gifts, the current state of the economy will influence gift-giving strategies in a variety of ways. Thirty-nine percent (39%) say they will consider less expensive gifts, 36 percent will focus on more thoughtful gifts, and 20 percent will consider not even giving a gift this year.

Survey: Americans' Love for Financial Security Taking Precedence Over Traditional Romance This Valentine's Day
Source: PR Newswire

High-Flying Fraudster (Literally) Equals More Bad Publicity For Financial Advisory Profession

Marcus Schrenker is no Bernie Madoff, that's true. But the Indiana-based financial advisor's saga will dominate the news today in many markets, as it did today, landing on the cover of the New York Post. And with good reason: To elude Indiana regulators, Schrenker attempted to fake his own death and escape to a far-flung paradise. A plot straight out of Hollywood, this is surely another black eye for the financial advisory community...

Registered Rep: Are We Mostly Crooks?

Wouldn't you agree that selling is easily the most important activity in the success of your financial services business? So, with that much responsibility, why do so many advisors continue to make the worst mistake possible?

We've been researching the psychological sales process for decades and continually find the exact same problems. Most advisors approach selling in the easiest way, not the most effective way. They present their own logic. They appeal to their own values. They present the features and benefits they like. In other words, they effectively make their sales presentations to themselves. And that is the worst mistake they (and you) can make...

Producer's Web: The worst mistake in selling financial services

As expected, the Securities and Exchange Commission approved the new Rule 151A, slightly amended from the proposed rule, which changes the way the SEC treats fixed-indexed annuities (FIAs); they are sometimes referred to as equity-indexed annuities under Section 3(a)(8) of the Securities Act of 1933. Despite significant congressional, state and industry opposition, the Commission voted 4-1 to enact this Rule, which, in effect, turns FIAs into securities -- subject to securities regulation. It also requires that all producers who sell FIAs have a securities license to do so. The SEC's new standard applies to indexed annuities issued on or after Jan. 12, 2011 and producers will need a securities license to sell FIAs from and after that date.

...We expect that litigation will immediately be filed by interested parties within the insurance industry, both to enjoin enforcement of the Rule and to overturn it as soon as possible. Indeed, at the hearing today, the SEC began its public relations campaign in anticipation of such litigation, with SEC staff criticizing the "saber-rattling" of the industry with respect to the regulation and its legal merit.

I endorse any and all efforts to challenge Rule 151A. It's misguided -- at best -- and counterproductive and dangerous at worst. As many within the industry have repeatedly pointed out, FIAs are fixed insurance products not subject to securities regulation. Indeed, the SEC reported receiving nearly 5,000 comments on its regulation proposal, the overwhelming majority of which opposed it. As the Commissioners noted, that number of comments is highly unusual...

Producer's Web: A response to the SEC's approval of Rule 151A

Due to the current economic conditions, fueled by volatility in the stock market and real estate investments, many individuals are looking for liquidity in their assets. People are re-thinking their options. They are now looking for choices and flexibility with their portfolio planning. One of these options is to sell off a portion of their annuity.

Selling Annuities in the Current Marketplace
Source: Insurance News Net

New York Life Insurance Company today announced that total sales of its income annuities have exceeded $1 billion for the first time, reaching more than $1.2 billion at year-end 2008. The sales benchmark includes sales through New York Life’s career agency system of $850 million and income annuity sales through its partnered banks of $350 million. Further, sales through the company’s AARP Lifetime Income Program, which offers lifetime income annuities to AARP members, have exceeded $100 million in 2008 – a new milestone for sales of this product through AARP.

New York Life Gains Sales Milestones in Both Income and Investment Annuities
Source: Yahoo! Finance

As we approach retirement, the process of generating lifetime income while balancing the desire to leave a legacy for our heirs becomes the focus of retirement planning. Traditionally, retirement was expected to last five years, and the three-legged stool of pensions, Social Security, and personal savings was considered sufficient to cover a retiree’s needs. Now, retirees are expected to plan for a retirement lasting closer to 30 years. And, a fourth leg is being added to the mix — work. Will retirees change the way they receive their income, and will government change the manner in which income is taxed?

Who's Retirement Is It?
Source: Life Insurance Selling

The 37 million Americans aged 65 and over who receive a Social Security check each month are forecast to receive no increase in their Social Security checks next year, according to the Congressional Budget Office's (CBO) 2009 Budget Report.

Seniors to Receive $0.00 Increase in Social Security Next Year
Source: PR Newswire

The growing number of plan sponsors that are suspending employee 401(k) matches or freezing defined benefit plans is a disturbing trend that could dissuade new employees from participating in their company's retirement programs in the future.

Global Economic Crisis 'Shocked the Retirement System'
Source: Financial-Planning.com

Taxes, not health care, are retirees' biggest expense when they're in their 70s, according to research commissioned by Securian Financial Group, Inc.

"We speculated that taxes consume a bigger slice of retirees' spending pie and wanted to either confirm or refute that with research," said Michelle Hall, manager, Marketing Research. Securian contracted with Spectrem Group to survey 225 retirees between the ages of 70 1/2 and 75 in August 2008 about their income and expenses. Respondents had a net worth of at least $1 million.

Biggest Expense at Age 70 is NOT Healthcare: Securian Study
Source: PR Newswire

The adage that money can’t buy happiness is supported analytically by new research demonstrating the importance of having purpose in one’s life and that the most content people focus on the non-financial essentials in their lives, even during difficult economic times. Living the “good life” for middle-aged and older Americans is equated with spending time with family and friends, a previously unquantified finding, according to the MetLife Mature Market Institute’s latest study, Discovering What Matters: Balancing Money, Medicine and Meaning, produced in conjunction with leading author, life coach, and executive educator, Richard Leider. They describe the good life in terms of having health, a financial safety net and the time to do what is important to them.

Meaning Trumps Money for Those Seeking the Good Life, According to MetLife Mature Market Institute Study
Source: Yahoo! Finance

The Minnesota Department of Commerce fined Physicians Mutual and Physicians Life Insurance Companies $375,000 for using deceptive sales practices and selling Medicare supplement plans, long-term care insurance and annuities that were not suitable for Minnesota consumers.

IFA Web News: Physicians Mutual, Physicians Life latest to be snared in Minnesota’s net

A Conseco Inc. (CNO) unit requested a hearing after a Florida state agency threatened to suspend or revoke its license because of allegations of mismanagement and misleading consumers... The Florida Office of Insurance Regulation had accused Conseco Life of misleading consumers about the funding of its policies and of withholding important information from the agency. The agency said that since 2006, Conseco Life issued annual statements to policyholders that failed to indicate their Lifetrend policies were underfunded.

Conseco Life notified about 5,000 policyholders this fall of an increase in their monthly rates, and 90% of them were told that their policies were underfunded. Conseco Life sent another letter a week later notifying policyholders they needed to submit payments for the "shortfall" no later than Jan. 3...

CNN Money: Conseco Unit Seeks Fla. Hearing, In Talks On Problem

The global financial crisis will bring major changes to the US life insurance industry, impacting the balance sheets, operating performance and competitive positioning of many of these organizations, according to Ernst & Young's Global Insurance Center US Outlook for the life insurance industry. But for some insurers, opportunities will emerge as well.

Life Insurers Face Unprecedented Challenges and Opportunities in 2009, Ernst & Young Predicts
Source: PR Newswire

Jackson National Life Insurance Company® (Jackson) today unveiled a new corporate Web site, www.jackson.com. As part of the company’s commitment to developing its online capabilities, Jackson has added a host of enhanced tools and services to create a highly valuable resource for advisers and their clients. In addition to applications that allow for online transaction processing and client data management, jackson.com features multimedia educational presentations and detailed product comparison guides, as well as efficient navigation and a streamlined registration process for new Jackson representatives and product owners.

Jackson Launches New Corporate Web Site with Additional Functionality and Intuitive Navigation
Source: Yahoo! Finance

Annuity & Life Reassurance America Inc., and Heritage Union Life Insurance Company, two subsidiaries of Heritage Union, LLC, have merged, the company announced today. The combined company will operate under the name Heritage Union Life Insurance Company as an Arizona domestic insurer with licenses in 42 states and the District of Columbia.

Annuity & Life Reassurance America Inc. Merges with Heritage Union Life Insurance Company
Source: Insurance News Net

Wouldn't you agree that selling is easily the most important activity in the success of your financial services business? So, with that much responsibility, why do so many advisors continue to make the worst mistake possible?

The Worst Mistake in Selling Financial Services
Source: Producers Web

Given the current economic climate, improving one’s personal savings habits is high on everyone’s list of New Year’s resolutions. To help you act on this resolve, MetLife is offering a series of free brochures on savings and investing basics.

Make a New Years Resolution to Become More Fiscally Fit in 2009
Source: Business Wire

U.S. life insurers, led by MetLife Inc. and Prudential Financial Inc., lost $76.8 billion in surplus in 2008 on investment declines and costs guaranteeing retirement products, erasing six years of gains, Conning & Co. said.

Life Insurer Surplus Drops $77 Billion, Erasing Gain
Source: Bloomberg

The Phoenix Cos. filed a notice with federal regulators Wednesday, saying it has a nonbinding letter of intent to buy American Sterling Bank, not the bank's parent company as Phoenix reported Tuesday.

Phoenix to Buy Bank, Not parent Company
Source: Hartford Courant

Even if you have a history of cancer, heart disease, diabetes or other conditions, an underwritten life insurance policy isn't necessarily out of reach. Many insurance companies sell life insurance to individuals with medical conditions, provided you show that your condition is under control and that you are compliant with your doctor's orders.

But sometimes a history of severe health problems or even some professions and hobbies will make an applicant too "risky" to insure.

If you are "highly rated" or even "uninsurable" but still need life insurance, there are ways you can buy life insurance.

Insure.com Offers Practical Ways for the "Uninsurable" to Find Life Insurance
Source: Yahoo! Finance

Confidence rose among both millionaires and affluent investors in December, according to the Spectrem Group's indexes of both groups. The confidence indexes for millionaires (with over $1 million) and the affluent ($500,000 to $1 million) were both significantly down year over year at -23 and -31, respectively. But that represents an increase over a November all-time low of -39 for both indexes.

Confidence Rises, But Investors Are Still Angry
Source: Financial-Planning.com

While some long-term trends look favorable for the life insurance industry, short-term challenges will occupy the attention of senior management for the next two to three years due to the impact of the financial crisis, according to a new report by Conning Research and Consulting, Inc.

Life Insurance Industry Forecast: Financial Crisis Will Impact Industry Results Through 2010
Source: PR Newswire

Expanding its commitment to educate and empower consumers, Chase Card Services, a division of JPMorgan Chase & Co., unveiled today an enhanced version of its popular Web site Chase Clear & Simplesm with new tools to help customers manage their accounts, tips to avoid unwanted fees and information to support their financial success.

Chase Unveils Enhanced Web Site to Empower Consumers
Source: Business Wire

Long-Term Care insurance (LTCI) was the focus of a House Energy and Commerce subcommittee. According to Earl Pomeroy, representative of North Dakota, it was the first time in more than 18 years that LTCI came before a congressional committee. The reason for the meeting was recent press coverage of poor claims practices by a small number of LTCI carriers.

Consumer Protection and Long-Term Care
Source: Life Insurance Selling

Many life insurers sell products that are tied to the performance of the stock market, such as variable annuities. When equities plunged during the fourth quarter, investors began to worry that some life insurers may be forced to raise new capital or face potentially damaging downgrades from rating agencies.

Life Insurance Shares Jump, Led By Prudential
Source: MarketWatch

Four billion dollars used to sound like a lot of money. That was before the federal government, with funds it does not have on hand, opened a $700 billion line of credit for faltering financial institutions. And before talk of more megabillions for economic stimulus packages, rescuing the auto industry, and various bailouts du jour. How does a trillion-dollar budget deficit grab you? (And it will grab you.)

Things are Looking Up for the DI Business
Source: Life Insurance Selling

Insurance regulators tentatively have agreed to allow insurers to reduce reserves for variable annuities in hopes of strengthening the carriers' balance sheets.

Regulators Move to Reduce Capital Reserves for VAs
Source: Investment News (subscription required)

With the continuous instability of the stock market and diminishing returns on real estate investments, American families are growing increasingly anxious as each day continues to eat away at their life savings and investments.

Life Insurance Inquiries Rise as Stock Portfolios and Real Estate Values Decline
Source: Insurance News Net

Portfolio managers for Prudential Investment Management said today that they see greater current opportunities in fixed-income investments than in equities. Bonds' pricing tends to reflect negative economic factors to a greater extent. SO THEY'RE MORE OF A BARGAIN?

Prudential Managers See Fixed-Income Opportunities
Source: Financial Planning

Variable annuity sales sank in 2008 as the stock market's swoon scared investors off.

As a result, insurers are raising prices and adding restrictions on the products. But sales of variable annuities should rebound once the stock market does, according to experts.

Variable Annuity Outlook Hinges on Market Upturn
Source: Insurance News Net (subscription required)

Variable Annuity Outlook Hinges on Market Upturn
Source: American Banker (subscription required)

One in five adults aged 45 and older are suffering health problems due to financial stress, according to a new survey by AARP.

The survey also found health problems due to financial stress is having a greater affect on those between the ages of 45 to 64 than on those ages 65 and older.

Economic Stress Causing Health Problems
Source: Biz Journals

Not only can you come out far ahead financially with a fixed annuity, but you are spared the heart-stopping wild gyrations of the stock market. All you have to do is sit back and relax while your fixed annuity keeps forging ahead year after year.

How Safe is a Fixed Annuity?
Source: Life Insurance Selling

Nationwide Mutual Insurance Co. said Friday it completed its purchase of the shares of its publicly traded retirement savings company Nationwide Financial Services Inc. that it did not already own.

Nationwide Financial No Longer a Public Company
Source: Yahoo! Finance

Ongoing turmoil in the financial markets has resulted in a highly challenging environment for the U.S. insurance industry, a trend that is expected to continue in 2009. We also expect further consolidation in the industry...

Zacks: Zack 2009 Insurance Industry Outlook

ING Group NV split up its U.S. wealth management business to put the company in position to increase assets under management when the economy eventually recovers, but analysts remain skeptical that anyone in the industry will grow in the near term.

The Dutch company's U.S. business now has four units: retirement services, annuities, insurance, and investments. Previously, retirement services and annuities, its two largest business lines, operated within the wealth management business...

Insurance Networking News: Anticipating a Recovery, ING Divides Wealth Line

As state insurance regulators fast-track industry proposals to cut the amount of money that life insurers must set aside for benefits, consumer groups and industry watchdogs are crying foul.

The groups, which include the Consumer Federation of America and the Center for Economic Justice, contend the proposals to lower insurers' risk-based capital and reserve requirements are detrimental to owners of life-insurance and annuity contracts because they reduce the financial cushion life insurers have to keep on hand to ensure they can pay claims.

"In the midst of the current financial crisis, it is unseemly even to discuss the idea of weakening the conservative statutory accounting rules that have long been in place for insurance companies," wrote Joseph Belth, editor of the Insurance Forum newsletter, in a letter to the National Association of Insurance Commissioners...

WSJ: Groups Oppose Easing Insurer-Reserve Rules

Storms weren't the only thing that battered insurance companies in 2008, and this year could be just as tough.

Perhaps the biggest event to shake the industry in 2008 was the sudden collapse of American International Group Inc., once the largest insurance company in the U.S. before it gave in September under the weight of bad bets it made insuring mortgage-backed securities.

Forbes: Insurers weathered financial storm in 2008

Insurance and investment provider Phoenix Companies Inc. said Wednesday it struck a reinsurance deal as part of an effort to improve its capital position.

Details of the deal with Reassure America Life Insurance Co., a unit of Swiss Re, were not disclosed. The deal was for a group of life insurance policies, Phoenix said in a release.

Forbes: Phoenix Cos., Swiss Re unit in reinsurance deal

The annual DataBook is a one-stop source for the biggest and best of the financial services industry. The InvestmentNews DataBook contains year-end data on investment funds, broker-dealers, life insurance providers, clearing firms, RIAs, DC service providers, 401(k) managers, college savings plans and more...

Investment News: Data Book 2008

We don't know whether to laugh or cry. Our annual list of the year's most laughable moves proves that, even in moments of crisis, stupidity lives on...

Fortune: 21 Dumbest Moments in Business 2008

As of 2010, all new members who join the National Association of Personal Financial Advisors will have to hold the certified financial planner designation. While a small sampling of members don’t have any problems with that, others think the move will preclude a valuable subset of the advisory profession...

FA-Mag: NAPFA To Go All-CFP In ’10

A statue stolen last month from Wall Street financier Bernard Madoff's Florida home has been returned undamaged, and with a note attached, to a country club where the accused swindler is a member, Palm Beach police said on Thursday.

Reuters: Stolen Madoff statue returned with note attached

President Bush signed legislation that would free businesses from having to pump billions into pension funds in the coming year — cash companies say they need to stay afloat in a worsening recession...

Mt. Vernon News: Federal legislation adjusts funding of pension plans