Annuity Suitability Presents Challenges

A new research report from TowerGroup Inc. says insurers should go above and beyond current regulatory requirements when dealing with the issue of annuity suitability.

The report by Senior Analyst Rachel Alt-Simmons says the widespread adoption of the “model law”, which holds insurance companies–not just the selling agents or broker-dealers–accountable for ensuring the appropriateness of their annuity products, presents new liabilities and challenges for insurers. “The adoption of this regulation places insurance companies under extreme pressure to find ways to ensure the products they sell are suited to the investors,” the report says.

Annuity Suitability Presents Challenges
Source: Insurance Networking News