Pesky commissions aside, the insurance industry is quickly and somewhat quietly blending into the larger realm of the securities markets, at least from a regulatory perspective.
That was among the takeaways Wednesday in Las Vegas during the opening session of the Carson Group’s Excell conference.
“What’s happening in the regulatory marketplace is Wall Street and Main Street are continuing to come together,” said Ron Barrett, senior vice president of annuity distribution at F&G. “Regulation is pulling annuities into a fiduciary landscape.”
As fee-based advisory services continue to dominate the wealth management industry, the commission-heavy insurance industry is taking notice and trying to react accordingly.
After posing the question of whether insurance and securities “will be viewed exactly the same at some point,” Barrett added that advisers need to be thinking along those lines.
“That’s one area I see changing and changing very quickly,” he said, before slipping in a pitch for the “importance of strategic partnerships” with insurance product providers.
“You cannot be an expert in everything,” Barrett told the audience. “Between strategic partnerships and the regulatory environment, a new holistic view is occurring inside the platform.”
In terms of fee-based options for insurance products, Barrett recognized the need, but said progress has been sluggish.
“We recognize that there is the need we have to fulfill for you,” he said. “You see other carriers moving there, but the adoption rate is slower than anticipated.”
Dylan Tyson, president of Prudential Retirement Strategies, also acknowledged the need for the insurance industry to migrate toward fee-based models but said it was more complex than just placing commission-based products on fee-based platforms.
“To be able to serve customer needs, we really need to look at building something from ground up,” Tyson said. “You’ll see us continue to look at how we do things that fit well for customers. Over time, fee-based and fee-only will become more dominant.”
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Snowden Lane taps Pontera for held-away retirement account management, while Opto Investments enhances an Indiana-based independent RIA's private markets offering.
The $420 million RIA in Auburn Hills and Ann Arbor gives Credent its second and third Michigan locations while pushing it closer to $4 billion in AUM.
New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.