3 strategies for annuity carriers bracing for DOL fiduciary rule impact
March 22, 2016 by Kristen Beckman
Wait and see, or take action? Annuity carriers have a choice about how to prepare for the coming fiduciary guidelines
Annuity providers should begin preparing now for potential impacts of the Department of Labor’s fiduciary responsibility guidelines that are expected to be implemented in the next several months, according to a report by Novarica.
The impact of the ruling for this year remains unclear, although sales may drop as advisors look for ways to avoid risk. Conversely, there could be a rush to book sales before the rules take effect, the firm says.
Most of the impacts are likely to manifest in 2017 or later. Some carriers already are preparing by establishing governance structures for initiatives, considering changes to their overall product mix commissions and surrender charges, and changing distribution strategies. More carriers should be taking steps like these to avoid being blindsided in the months and years to come, Novarica says.
