DISTRIBUTION DISRUPTION - Oliver Wyman（分配中断奥纬咨询）.pdf

Financial Services DISTRIBUTION DISRUPTION IMPACTS OF THE DEPARTMENT OF LABOR FIDUCIARY STANDARD FOR US LIFE INSURERS AUTHORS Mick Moloney, Partner Insurance Practice, Americas Ramy Tadros, Partner Head of Insurance Practice, Americas David Clarkson, Partner Wealth Asset Management Practice, EMEA Anthony Bice, Partner Insurance Practice, Australia The Department Of Labor’s (DOL’s) latest proposal to expand the definition of a fiduciary under the Employee Retirement Income Security Act (ERISA), if adopted substantially in its current form, will cause significant disruption to the advice landscape surrounding 40 1K rollovers and IRAs and will have substantial knock-on effects for retail insurance distribution channels generally. From a new business perspective, more than half of the new money flows to the Variable Annuity and Fixed Index Annuity market and about a quarter of Fixed Annuity sales are from qualified pools of retirement assets. This is “ground zero” for the DOL’s campaign. The stakes are high with an estimated 5-year flow from IRA rollovers of $2.5 TN which represents a huge share of addressable asset flows for insurers, wealth, and asset managers. More broadly, however, the changes will have a range of strategic impacts on life insurers beyond annuity manufacturing including retention strategies for DC assets in retirement businesses, effects on mutual fund complexes and the economics of owning distribution in the form of broker/dealer platforms or tied agents. Since the publication of the notice, industry participants have been examining the potential implications for their business models. Reactions range from believing that the fiduciary standard will profoundly impair sales of products used within IRAs, such as annuities, with knock-on implications on non-qualified assets, to more nuanced views of the changes to compensation models