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Insurance Distributors

Over the past 20 years, the distribution of insurance products has continued to shift from captive strategies to 3rd parties, such as financial institutions, independent brokers/agents, and direct channels. The growing “independent” nature of insurance distribution, combined with a more proactive regulatory environment, has heightened the need for independent, arms-length due diligence and monitoring of the underlying financial strength of insurance carriers.

ALIRT’s insurance distribution clients include:

  • Financial Institutions (Banks, Broker/Dealers,RIAs),
  • Independent Insurance Agents/Brokers,
  • Specialty Brokers (Termination and DC Annuities/BOLI)

Financial Institutions

Today’s financial institutions often provide a spectrum of insurance products to their banking or investment clientele, including life and annuity products, personal and business property and casualty coverages, and medical and supplemental health insurance.

Because financial institutions face substantial regulatory oversight as well as internal audit requirements, they need to perform and document regular financial oversight of their insurance company partners selling these policies.

Through its core ALIRT Service, ALIRT specializes in meeting just these needs. In fact, ALIRT currently supports the due diligence efforts of the country’s four wirehouses, along with the vast majority of the country’s large and mid-sized banks and independent regional and independent broker/dealers.

For more information on how we can help your bank program understand and document the relative financial performance of its insurance partners, please contact us at info@alirtresearch.com.

Independent Insurance Agents/Brokers

Independent Insurance Agents/Brokers continue to represent a predominant channel for the distribution of life and annuity, property & casualty, and/or health insurance products.

All insurance distributors face a similar challenge today: how best to track and understand the relative financial performance of their insurance partners in an environment where broad macro-economic factors can quickly alter an insurer’s ownership structure, product mix, and distribution appetite.

Through its core ALIRT Service, ALIRT specializes in helping the independent broker/agency system make sense of the welter of financial and market intelligence continuously impacting their carrier partners – and ultimately the financial well-being of the end insured.

For more information on how we can help your agency develop a top-tier carrier oversight program, please contact us at info@alirtresearch.com.

Specialty Brokers (Termination Annuities/DC Annuities)

Rapid change in today’s pension environment has spurred innovative solutions from the insurance industry. Using Termination Annuities or deferred or immediate annuities within 401k plans to meet long-term pension objectives are important options for a growing number of business organizations – and for the brokers who serve them.

The long-tail nature of these programs, along with strict ERISA due care rules, makes the financial strength of the carriers backing them indispensable. Our 95-1 Termination Annuity Issuer Analysis and DC Plan Issuer Analysis services are designed to provide corporate buyers of Terminal Funding and/or 401k Annuities with an easy-to-understand approach to analyzing the relative financial strengths and weaknesses that impact insurance company credit quality.

To learn more about how ALIRT can support your “arms length” due diligence efforts and meet ERISA due care requirements, please contact us at info@alirtresearch.com.

Specialty Brokers (BOLI)

Bank Owned Life Insurance (BOLI) has long been an attractive investment alternative for banks and credit unions given the use of tax-deferred interest to meet growing employee benefit/retirement/and key man funding needs, as well as its non-correlation to many other investment classes.

The often sizeable exposure to these products, however, along with heightened regulatory and internal audit scrutiny, makes financial oversight of the carriers backing them indispensable. This need for strong due diligence only increased with section 939A of the Dodd/Frank legislation, which mandates that banks no longer rely solely on rating agencies when vetting their BOLI products. BOLI brokers are now often called upon to offer this additional level of carrier financial oversight.

ALIRT’s BOLI Service is designed to provide both BOLI brokers and bank buyers with an easy-to-understand quantitative and qualitative approach to analyzing the relative financial performance of insurance companies, which meets heightened requirements under Dodd/Frank.

To learn more about how ALIRT can support your “arms length” and independent due diligence efforts, please contact us at info@alirtresearch.com.

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