Distribution Disruption: Impacts of the Department of Labor Fiduciary Standard for US Life Insurers
The Department of Labor’s latest proposal to expand the definition of a fiduciary under the Employee Retirement Income Security Act (ERISA) will cause significant disruption to the advice landscape surrounding 401K rollovers and IRAs and will have substantial knock-on effects for retail insurance distribution channels generally.
In this report, Distribution Disruption: Impacts of the Department of Labor Fiduciary Standard for US Life Insurers, the authors summarize views that they have validated through a series of interviews and discussions with a cross-section of industry leaders and subject matter experts. They believe that insurers should be considering the standard carefully, quantifying exposures under a range of impact scenarios, and developing strategic plans around portfolio strategy, distribution, and product innovations.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
What Lessons Can We Learn from Elsewhere?
What Do We Think Insurers Should Be Doing Now to Prepare?