According to a survey of 861 NAIFA members who sell health insurance, agent commissions have declined dramatically since the medical loss ratio (MLR) provision of the health care reform law went into effect. Seventy percent of respondents who sell health insurance have seen a decrease in commissions, forcing many agents to reduce their services to clients, consider charging fees for services they had been providing at no additional charge, and in some cases, laying off employees and leaving the health insurance market.

Prompted by an April 25th federation wide leadership call conducted to explain Board action in response to a "blue ribbon" task force report, Texas Trustee Jason Talley asks for answers to specific questions in a letter to Miller as a follow up to statements and queries raised on the call. Miller said the NAIFA Board would ask the National Council for a national dues increase effective Jan. 1 next year. Following the call Miller said he misspoke when he cited a one-third reduction in NAIFA staff over the past two and one-half years as an example of cost saving measures taken by NAIFA. Click here to read the letter.

The profound demographic trend that is boosting demand for investment advice — the millions of baby boomers retiring or planning their retirement — also is threatening the financial advisory sector with a talent shortage. Even as more and more older Americans seek advice on bolstering their nest eggs, advisers themselves are looking to head off into the sunset. Too few younger advisers are in the pipeline to replace them.

There are questions about the future of the group long-term care market, as two insurers have stopped offering the product in the past 17 months.

In November 2010, MetLife announced it would discontinue the sale of new LTC insurance, and Unum announced it would do the same for group sales in February. This leaves just two companies - Genworth and Prudential - offering group LTC insurance.

In a two-hour federation wide conference call April 25th President Robert Miller announced that the NAIFA Board would not pursue structural changes in the federation and, instead, ask for a dues increase effective Jan. 1, 2013, and approval of amendments to the NAIFA bylaws to allow the Board to establish its own dues levels in future years and select a slate of candidates for Board positions to be presented the NAIFA National Council in future elections.  Click here for details.