NAIFA Blog

The State of the Union: A Focus on the Middle Class

A recurrent theme in President Obama’s State of the Union address last night centered on the importance of promoting the financial success of the middle class. The President spoke of “the basic American promise that if you worked hard, you could do well enough to raise a family, own a home, send your kids to college, and put a little away for retirement.”

Of course, these are goals that NAIFA members help their clients achieve with regularity. Most NAIFA members are small business owners located in communities around the country. Nearly 60 percent of their clients have household incomes of less than $100,000. The insurance and financial products, services, and advice they provide help middle class people with nowhere else to turn for these things achieve financial security and prosperity.

Yet increasing regulatory burdens on their businesses at both state and federal levels threaten the ability of these advisors to effectively serve this segment of the market.

NAIFA agrees with the President’s broad statement that “we need smart regulations to prevent irresponsible behavior.” In fact, it echoes the sentiments of NAIFA President Robert Miller, who recently told InvestmentNews, “We're not running from regulation. There is room for intelligent regulation in the marketplace.”

The key is making sure regulations are intelligent (or “smart,” depending on which president’s phrasing you prefer). An SEC fiduciary rule that would endanger the business model that has allowed NAIFA members to successfully help their middle-market investor clients for decades would not be intelligent. A DOL fiduciary rule that would make it more expensive or difficult for people investing for retirement to get professional advice would not be smart. The health care law’s MLR rule, structured in a way that makes it impossible for many insurance brokers to continue customer services to their individual and small business clients, is not intelligent.

NAIFA shares the President’s concern for the well-being of the middle class – in fact, it’s our members’ business! We look forward to working with the administration in the coming year to ensure that regulations affecting NAIFA members and consumers provide needed protections but do not do unintended harm to Main Street America.

NAIFA's Robert Miller Comments on Congressional Committee Vote to Repeal the CLASS Act

NAIFA President Robert Miller issued the following statement on the House Ways and Means Committee vote in favor of HR 1173 to repeal the CLASS Act:

“NAIFA applauds Congressman Boustany’s leadership and the Ways and Means Committee’s decision to repeal the unsustainable long-term care insurance program called the CLASS Act.  NAIFA supports the goal of achieving financial security to cover long-term care services. However, we believe there are better ways to help people plan for their long-term care needs, such as offering quality insurance products at people’s places of employment. We look forward to working with Congress in a bipartisan manner to enact sustainable long-term care reform.”

For more information, see:

• Congress Moves One Step Closer to Repealing the CLASS Act
• The CLASS Act Is Down. Let’s Get It Out!

 

NAIFA Encouraged by SEC's Deliberate Pace on Fiduciary

One year after a Securities and Exchange Commission report recommended imposing a fiduciary duty on registered reps, NAIFA remains committed to working with the SEC to ensure that the commission’s final fiduciary rule doesn’t hurt the ability of middle-market investors to receive advice and services.

When the fiduciary proposal arose during the drafting of the Dodd-Frank bill, NAIFA strongly advocated that any SEC fiduciary rule should not threaten the ability of advisors to receive commissions or sell proprietary products. Fortunately, safe harbors in the final Dodd-Frank law preserve these aspects of the business model that currently allows advisors to protect the financial well-being of millions of American families.

Now, NAIFA wants to ensure that the SEC fiduciary rule will not increase compliance and litigation costs for advisors, which in turn would force higher costs for their base of middle-market clients.

“Our biggest worry is that a rule designed to help consumers could wind up doing a lot of harm if it makes the cost of doing business onerous for advisors working with Main Street investors and everyday people saving for retirement,” said NAIFA President Robert Miller. “NAIFA is encouraged by recent signals that the SEC is taking a deliberate approach and preforming a detailed cost-benefits analysis on a proposed fiduciary rule. We’ve seen signs that the commissioners have begun to understand the important role NAIFA members play in protecting the financial well-being of millions of Americans.”

The SEC is expected to request data from industry groups to assist in the cost-benefit analysis and NAIFA officials have expressed a willingness to help.

“At times during this debate, NAIFA has been painted in very broad strokes by people implying we’re opposed to any and all regulation,” Mr. Miller added. “That couldn’t be further from the truth. We favor intelligent regulation that serves a defined consumer-protection purpose and that preserves the ability of American families to obtain affordable financial services and advice.”

Additional Information:

• InvestmentNews, Jan. 15, “It is slow going on fiduciary rule.”
• InvestmentNews, Jan. 16, “How do you put a dollar sign on fiduciary duty?”

Christian Science Monitor Op Ed by NAIFA's Robert Miller: MLR Is Hurting Agents and Consumers

"This month marks a year since Obama's health law put into play one of its lesser known, but most damaging provisions. A rule that amounts to a pay cut for insurance agencies has complicated the lives of millions, reducing the help with claims that these agents provide."

Read the rest on the Christian Science Monitor web site.

A Message From NAIFA President Robert Miller

Hello NAIFA, and welcome to 2012. I hope you’re ready for an exciting and successful year with your professional association.

This year will mark NAIFA’s 122^nd birthday – that’s 122 years of protecting our members’ interests in Washington and in every state capital! That’s 122 years of protecting the way you do business under a commission-based model. And that’s 122 years of telling our members’ stories to ensure that key decision leaders understand the important ways you strengthen our economy and protect American families and businesses.

I like to think we’re not just 122 years old, but we’re 122 years strong. Each new year adds to NAIFA’s prestige, influence and value to its members.

But over the course of 12 decades, change is inevitable, and NAIFA has always been committed to ensuring our federation continues to lead our industry and help our members in new and dynamic ways.  I believe that NAIFA must tackle three critical inter-related issues to keep our association moving forward: modernize our governance model; revitalize our membership activities; and re-message our value proposition.  Each of these areas depends on the others and only together will they work to bring NAIFA to the next level of success in leading our industry and serving our members.

That’s why the NAIFA Presidential Blue Ribbon Task Force is examining NAIFA’s governance structure to make certain that the way we operate is up-to-date and as effective as possible in achieving the NAIFA mission. Ensuring efficient governance of NAIFA will guarantee that the federation best serves our members and remains strong and vital into the future.  The Task Force has an extremely important mission for 2012, and I will continue my commitment to regularly report on Task Force activities on the NAIFA web site.  Look for further updates after our next conference call scheduled for January 17.

But improving NAIFA’s governance model is only one component of the three inter-related initiatives already underway to strengthen your association.  Just as important, energizing NAIFA membership is a major priority for 2012. We have bolstered the efforts of our National Membership Committee by focusing their energy on their home states to help build membership; NAIFA-National is providing robust strategic guidance and support to federation leaders on how to re-energize and refocus their membership efforts in the coming years. This fall, we launched the incentive campaign – which literally will pay off when each association grows, and NAIFA has provided leaders with valuable resources on the membership portion of our web site, including: the NAIFA Online Service Center, NAIFA Online Leadership Academy, Online Leaders Training Center, NAIFA Membernet, and leaderscenter/membership. Finally, under the direction of Dr. Waters, the NAIFA-National staff personally reach out to thousands of members by participating in monthly staff membership phone-a-thons.  And in addition, of course, NAIFA is forging ahead in developing membership programs with numerous insurance companies and is making strides in efforts to attract the independent market.

Changing how we structure our federation and how we recruit and retain members are two core components of keeping NAIFA strong.  But a third and equally critical component is how we message the value of NAIFA. We will re-message NAIFA in ways that are more compelling and relevant to today’s members and prospective members.  A NAIFA re-messaging campaign currently under development carries a simple and true message – that NAIFA members make more money.  The success of this campaign will depend largely on the support, participation and engagement from you and your fellow members and leaders.  Stay tuned for more on this important initiative.

Taken together, our aggressive efforts on three fronts – governance, membership, and messaging – form a coordinated strategy to ensure NAIFA’s indispensable role in protecting our industry and helping members like you grow their business and protect the financial security of the American public.

Thank you all for supporting NAIFA. I am honored to serve as your president.