Another New Year has begun!  We are one-twelfth of the way through 2008!  It’s hard to believe, but time marches on. 

It’s always a good time to look back at the year behind and look ahead to the future.  That’s what the Roman god Janus is doing in this photo (Bust of Janus, Vatican Museum image in public domain). 

 

Congratulations to 10 Companies Renewing IMSA Membership 

American Family Life Insurance Company, Madison, WI;
EquiTrust Life Insurance Company, West Des Moines, IA;
ING Life Companies, including:

-- ReliaStar Life Insurance Company, Minneapolis, MN;
-- ReliaStar Life Insurance Company of New York, Woodbury, NY;
-- Security Life of Denver Insurance Company, Denver, CO;

Pacific Life Insurance Company, Newport Beach, CA;
Pacific Life and Annuity Company, Newport Beach, CA;
State Farm Life and Accident Assurance Company, Bloomington, IL;
State Farm Life Insurance Company, Bloomington, IL; and
West Coast Life Insurance Company, Omaha, NE.  

IMSA Launches Suitability Certification Clearinghouse

New Industry Utility Will Increase Compliance Efficiencies, Improve Consumer Protections

BETHESDA, MD--(Marketwire - January 30, 2008) - This week the Insurance Marketplace Standards Association (IMSA) launches a new Clearinghouse system for life insurance companies to help them efficiently gather certifications of supervision of annuity suitability from third-party distributors. 

Required by regulations in more than 30 states, the Clearinghouse will provide electronic storage and transfer of these certifications. Services will be available to all U.S. insurance companies, whether or not they are IMSA-certified, as well as third-party distributors.  

Gathering and distributing suitability certifications can be a significant administrative task for both life companies and third-party distributors. Many companies have hundreds of distribution partners from which they will need to obtain these certifications. Similarly, third-party distributors are being contacted by many life insurance companies requesting these certifications. 

"This valuable solution introduces a significantly more efficient approach to satisfying the requirement," said Scott Curtis, Senior Vice President, Raymond James & Associates and IMSA Chair-Elect. "The Clearinghouse is an important development in response to the suitability regulations being enforced in many states -- it will help both the insurance product manufacturers and the distributors."  

IMSA is the premier standard-setting organization for the life insurance, annuity and long-term insurance marketplace. IMSA developed the Clearinghouse in response to its member companies and major distributors. 

"This state-of-the-art service helps companies comply with regulations in a uniform way nationally. In the end, that's a real benefit to annuity consumers through enhanced protections," said IMSA President & CEO Brian Atchinson. "The Clearinghouse is just one of the important ways IMSA is helping companies, distributors, consumers and regulators."

IMSA will host a webinar for the news media on February 15, 2008 at 2:00 p.m. EST to demonstrate the Clearinghouse and its features. The webinar will be free but participants must register. To receive an invitation to register for the webinar, send your email address to Susan Beach at SusanBeach@IMSAethics.org or contact Susan Beach at 240-744-3021 by the close of business on February 11, 2007. For additional information on the Clearinghouse and IMSA, visit the IMSA website at www.IMSAethics.org.  

Ken Kalis to Serve on IMSA Board of Directors' Working Group 

I have been invited and agreed to serve on an IMSA Qualification Process Working Group.  Here are some key excerpts from Brian Atchinson's January 16, 2008 letter: 

The IMSA Board of Directors has established a series of Working Groups to implement various recommendations arising out of the McKinsey & Co. study of IMSA completed earlier this year.  The designated Working Groups are as follows: Qualification Process, Communications and "In the Flow" which has two components: Distribution and Manufacturers.  These Working Groups will be comprised of members of the IMSA Board of Directors or their designees, IMSA company personnel, Qualified Independent Assessors and other key stakeholders associated with the IMSA qualification process.   

The mission for the Qualification Process is listed below: 

Evaluate and modify the qualification process to refine certain elements while maintaining an efficient means to measure adherence to IMSA standards.  Ensure that the IMSA qualification process provides all companies, regardless of size, measurable value.  Examine the renewal qualification processes and determine what credit can be given to companies that can document effective compliance in areas that have already undergone prior independent, internal or regulatory review.  Examples could include Enterprise Risk Management Systems, internal compliance reviews, regulatory market conduct exams, internal audits, etc.  Review the independent assessment process and develop an action plan to improve the consistency and quality of the process to better align the value with the cost for companies. 

I am looking forward to working on this exciting and important issue on the Working Groups throughout 2008.  Our first meeting will be in New York in February, and I believe the end result will be a stronger IMSA process that is more sensitive to the current realities of ethical market conduct in the first decade of the twenty-first century. 

FITZGERALD, LIFE INDUSTRY LEADER, RETIRES (AGAIN)
AFTER NEARLY 30 YEARS IN INSURANCE INDUSTRY 

L. Charles “Friar” FitzGerald will retire January 31 from the Insurance Marketplace Standards Association (IMSA). He joined IMSA in 2006 as Executive Vice President, Corporate Relations after a 25-year career with the American Council of Life Insurers where he held a similar position. 

“Friar has been a tremendous asset to IMSA and the life insurance industry,” said Tim Kneeland, President of Life Investors Insurance Company of America, an AEGON
company, and IMSA Past Chairman. “IMSA is fortunate to have had the benefit of his
insights and expertise.”

“During his time with IMSA, Friar has brought invaluable insights that IMSA will build on for years to come,” said Leon Roday, Genworth Financial Senior Vice President and General Counsel. 

FitzGerald was an early and strong advocate for the creation of what became IMSA as a way to promote ethical business practices for the benefit of the industry and consumers. 

“Friar has been a major behind-the-scenes presence in the industry,” said Brian Atchinson, IMSA President & CEO. “His creative mind and extraordinary skills have helped to resolve many of the challenges that have confronted the industry over the years. We wish him all the best.” 

Best Practice of the Month 

Here’s a best practice that may be a little hard to pull off, but one which will reap great benefits.  It will help satisfy the industry activity to support ethical market conduct as well as the executive leadership standard.  Get your CEO or President to serve on IMSA’s Board.  First off, your whole IMSA self-assessment team will be re-energized.  Your preparation for your next assessment will become so much more meaningful and people will be excited about being a part of an IMSA company.  Your CEO will grow and gain a deeper understanding of the value of IMSA membership while at the same time offering other members the experience and expertise of your company.  You will be able to have a positive impact on the IMSA standards as well as the exciting opportunity to encounter other top industry leaders working together to improve our industry.