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MetLife Expands Its Dental Continuing Education Program
Posted by STEVEN WEVODAU
- Press Release
- Source: MetLife
- On 9:00 am EST, Tuesday November 3, 2009
NEW YORK–(BUSINESS WIRE)–MetLife, a provider of dental plan administration for over 21 million people, today announced more options for dentists and allied health care professionals seeking to enhance their professional development through its dental continuing education program. Additions to the program, which is recognized by the American Dental Association (ADA) and the Academy of General Dentistry (AGD) for continuing education credits, focus on: 1) Evaluation and Treatment of Temporomandibular Disorder Patients, 2) Infection Control and OSHA Update, 3) Introduction to Dental Implant Therapy, and 4) Local Anesthetics. The courses can be accessed at www.metdental.com.
“Education is a key component to keeping dental care professionals informed about topics of importance in the industry and to help provide better patient care,” said Alan Vogel, DMD, national dental director for MetLife. “MetLife is committed to making timely and need based educational resources available to the dental community.”
MetLife continuing education materials are available to MetLife Preferred Dentist Program (PDP) participants as well as non-PDP dentists. PDP participants receive continuing education credits for MetLife’s educational offerings at no charge. Non-PDP dentists and hygienists also have access to the offerings and are charged a nominal fee for educational credits.
The latest Quality Resource Guides include:
Evaluation and Treatment of Temporomandibular Disorder (TMD) Patients, written by Edward F. Wright, DDS, MS, associate professor at the University of Texas Health Science Center – San Antonio, presents straightforward guidelines for the examination and treatment of patients with TMD symptoms. A sample initial patient questionnaire is included to help guide the clinician through the evaluation. Guidelines for TMD self-management and discussion of occlusal appliances assist the clinician in two primary areas of initial therapy. Guidelines for referral assist the clinician in managing those patients who do not adequately respond to primary therapy.
Infection Control and OSHA Update – Part 1 and 2, are authored by John A. Molinari, PhD, director of Infection Control for The Dental Advisor. Part one of this two-part guide discusses the history of: 1) infectious diseases and the healthcare worker; 2) the development of guidelines by the Center for Disease Control to protect both the patient and the healthcare worker; and 3) the OSHA regulations that impact the dental office. It discusses standard precautions for use during dental care, as well as vaccine recommendations and management of dental waterlines. The second part highlights specific infection control procedures for the dental office, including aseptic procedures and personal protective barriers. Charts and photos provide practical guidance for the clinician as they prepare their office, their staff and themselves to deliver dental care.
Introduction to Dental Implant Therapy, is written by Thomas Oates Jr., DMD, PhD, professor and vice chair of Periodontics at the University of Texas Health Science Center at San Antonio (UTHSCSA) and assistant dean for clinical research at UTHSCSA Dental School. There are multiple implant systems as well as a wide range of surgical and restorative options available to dental practitioners. This guide provides a scientifically based overview of implant systems to assist the dentist in clinical decision-making and answering patient questions regarding therapeutic options. Considerations are provided relative to both the surgical and restorative phases of implant therapy.
Local Anesthetics 2nd Edition, by Clarence Trummel, DDS, PhD, emeritus professor at the School of Dental Medicine at University of Connecticut, provides a quick review of the information that needs to be considered if adverse outcomes are to be avoided and optimal effectiveness achieved, when dealing with local anesthetics. The guide begins with a brief review of the pharmacology of local anesthetics and proceeds to a discussion of side effects and toxicity with emphasis on recognizing the symptoms of systemic toxicity. Included is a description of the essential questions that need to be asked when a patient indicates a past adverse experience. The guide contains a quick reference to information on dosages for the nine local anesthetic formulations commonly used in dentistry. The guide concludes with a discussion and evaluation of alternative delivery methods including computer-assisted devices and topical anesthetics.
For additional information about MetLife’s dental continuing education program, visit www.metdental.com.
MetLife, Inc. is a leading provider of insurance, employee benefits and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions. For more information, visit www.metlife.com.
Contact:
MetLife Shalana Morris, 212-578-1115 snmorris@metlife.com
Americans Don’t Understand Long-Term Care Insurance - Posted by Steven Wevodau
- Press Release
- Source: Prudential Financial, Inc.
- On 11:56 am EST, Tuesday November 3, 2009
NEWARK, N.J.–(BUSINESS WIRE)–An aging American workforce is increasingly concerned about long-term care needs and the benefits available through employers, according to a report released by Prudential Financial, Inc. (NYSE: PRU - News).
But the Prudential study, Long Term Care Insurance, shows only a small number of employees understand the benefits of long-term care insurance, with only about one-quarter of workers planning to use insurance to fund long-term care expenses.
“As Baby Boomers begin thinking about life after age 60, they grasp the implications of longer lives, post-retirement finances and lifestyles and nursing care costs,” said Lori High, president of Prudential’s Group Insurance business. “As a result, workers are more aware of their own future long-term care needs and the impact on their retirement lifestyle.”
Those with care-giving experience place greater value on employee benefits including long-term care insurance, because they’ve seen how inadequate insurance coverage can drain resources. Unfortunately, there remains a gap between this recognition and action to provide an adequate solution through the purchase of long-term care insurance, according to High.
Consider these findings:
- Three in 10 workers said they don’t have a plan or don’t expect to need long-term care services for them or their spouse.
- Among those that do have a plan, their expectations may be unrealistic given the rising costs of long-term care. The most common sources of funding cited for long-term care were 401(k) or retirement savings, followed by Medicare.
- The education gap is greater for women. Women tend to do more of the care giving and have more experience with care giving, yet they are less likely to have a plan for their own long-term care needs compared with men.
Prudential’s Long Term Care Insurance was conducted in conjunction with the company’s sponsorship of Long Term Care Insurance Month. Held each November, Long Term Care Insurance Month is an industry-wide effort coordinated by the nonprofit American Association for Long-Term Care Insurance in response to growing concern about the large number of Americans who lack adequate long-term care insurance protection.
“Americans recognize the importance of each dollar spent on employee benefits – both employers and their employees – and are looking for the best coverage their money can buy,” High said.
Long Term Care Insurance, the third in a series of five reports, stems from the company’s broad Study of Employee Benefits: 2009 and Beyond report fielded via the Internet during April and May of 2009. It consists of three distinct surveys: one among benefits plan sponsors, one among benefits plan participants, and one among employee benefits brokers and consultants. The surveys were conducted for Prudential by the Center for Strategy Research, Inc., a Boston-based, independent, market research firm. Click here for a copy of Long Term Care Insurance.
Prudential’s Group Insurance business manufactures and distributes a full range of group life, long-term and short-term group disability, long-term care, and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use in connection with employee and membership benefits plans. Group Insurance also sells accidental death and dismemberment and other ancillary coverages and provides plan administrative services in connection with its insurance coverages.
Prudential Financial, Inc. (NYSE: PRU - News), a financial services leader with approximately $580 billion of assets under management as of June 30, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential’s businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.
Group Insurance benefits are issued by The Prudential Insurance Company of America, Newark, NJ. Prudential and The Rock logo are registered service marks of The Prudential Insurance Company of America.
0164462-00001-00
Contact:
Prudential Financial, Inc. Laurita Warner, 973-802- 8614 Laurita.warner@prudential.com
Life Insurers Fall, after Relief Plan is Rejected - Steven Wevodau
ByMelissa Gannon, Director of Insurance and Bank Ratings
“So far the insurance industry is in much better condition than most of the rest of the financial services sector because of strong state solvency regulations,” NAIC President and New Hampshire Insurance Commissioner Roger Sevigny said in a statement announcing its decision. “Simply put, the industry has not made a credible case for why we need to make changes on an emergency basis, and why those changes should be limited to the specific proposals made by the industry.”
Insurance customers should benefit from the move, which should ensure more financially sound insurance companies. The effect on life insurer stock prices, however, is less clear. In a time when financial security is coveted, investors may like the tough stance the NAIC is taking. It could, however, hinder companies’ ability to pay dividends and improve profits.
Almost all life insurer stocks are down Thursday morning, following the decision. Leading the pack are AXA down 10.2% to $15.46, Hartford Financial Services fell 6.8% to $14.35, Lincoln National was off 6.1% to $15.81 and Aegon was down 6.3% to $5.25 to lead the pack. MetLife , one of the largest life insurers, declined 2% to $29.44 and Prudential Financial fell 3.7% to $27.56.
The NAIC’s rejection comes as a surprise since its Capital and Surplus Relief Working Group on Jan. 27 decided to recommend, all or in part, six of the nine ACLI proposals — despite criticism from a wide array of interested parties including consumer groups, state insurance commissioners, consulting actuaries, insurers, attorneys and individuals.
In fact, two participants, one by testimony and one through a submitted comment, accused the working group’s public hearing of being a sham since it was generally believed that the recommendations were already in the process of being implemented and that the full NAIC would be accepting the recommendations only two days later.
J. Robert Hunter, the director of Insurance for the Consumer Federation of America (CFA), in his testimony on behalf of the CFA and the Center for Economic Justice accused the industry of holding secret meetings where decisions had already been made in advance of the public hearing. Likewise, Joseph Belth, professor emeritus of insurance in the Kelley School of Business at Indiana University, stated in his comment letter that he believed the hearing was a formality to “create the appearance of public involvement in the process.”
In both testimony and submitted comments, several concerns were raised by the diverse group of critics.
Several people expressed concern that the changes were being rushed through. The NAIC has specific procedures for review, analysis, open commentary, debate and implementation of changes to regulatory reporting, but the committee was recommending that these new proposals be rushed into implementation for the year-end 2008 financial statements that are due to regulators in March, thus usurping standard procedures.
James Donelon, the Louisiana Commissioner of Insurance, stated in a letter to the working group that he does “not believe it necessary or appropriate to change the process for adopting standards or making changes to existing standards. The NAIC has a process…and it can and should be followed.”
Second, given the state of the economy and the general belief that the bleeding isn’t over, critics argued that now is not the time to reduce capital requirements but rather adhere to the stringent regulations that have made the industry financially sound. “Lowering solvency standards on an emergency basis during a time of financial crisis is contrary to their very purpose — financial soundness in hard times,” Donelon said.
Third, one of the goals of capital relief is to pre-empt possible rating agency downgrades when final 2008 capital levels are reported. Critics say — and rating agencies have acknowledged — that these changes will not have any impact on their ratings. In fact, some of the proposals would be considered cosmetic rather than having a real impact on financial strength or actual capital levels.
In his statement to the committees, Belth stated that he contacted the rating agencies asking if they would view the changes as improvements in financial condition or as cosmetic. A.M. Best responded that the changes “would not be viewed by A.M. Best as improving a company’s financial condition for ratings purposes.” Moody’s stated that “the possible regulatory changes will not impact the substance of the insurers’ risks and capital needs and therefore will not likely directly affect many ratings.”
Fourth, neither the ACLI nor the NAIC have submitted analytical evidence that the proposed changes would have the desired effect. Donelon said “no study or analysis has been performed to show any sound reasoning or justification for these changes.” Likewise, Hunter’s testimony was fraught with concerns about the lack of evidence that current reserve requirements were excessive, what the effects of the proposed changes would be on capital levels and risk-based capital ratios, and how policyholder protections would be affected.
Finally, the most controversial of the proposed changes pertained to the treatment of the deferred tax asset (DTA). Statutory accounting rules have a limitation of the amount of DTA that an insurer can admit on its books, because it is an accounting-derived asset that could not be liquidated to pay claims. The ACLI proposed to increase the allowed amount from 10% of capital and surplus to 25% of capital and surplus.
In its recommendation, the NAIC working group is allowed an increase, but only to 15% of capital and surplus. Attorneys from the law firm of Cantilo & Bennett, which has represented state insurance regulators in the area of troubled insurers, rehabilitation, and liquidation, said in a submission that “these DTAs are far from liquid and cannot be used in the near term to pay claims or satisfy other needs for liquidity. In these respects, the relaxation of the current rules is certainly perilous.”
The least amount of opposition came for the proposals to 1) use the preferred mortality tables currently in use for setting reserves on policies effective after Jan. 1, 2007 on policies effective prior to that date; and 2) guidance for commissioners in allowing collateral for reinsurance.
TheStreet.com Ratings issues financial strength ratings on each of the nation’s 8,600 banks and savings and loans which are available at no charge on the Banks & Thrifts Screener. In addition, the Financial Strength Ratings for 4,000 life, health, annuity, and property/casualty insurers are available on the Insurers & HMOs Screener.
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Curian Capital Adds Alternatives Asset Class to Custom Style Portfolios
posted by Steven Wevodau
New Investment Option Offers Diversification and Customization Benefits for Investors
“The Curian platform is designed to provide a comprehensive investment solution that financial professionals’ clients can customize according to their individual needs,” said Michael Bell, president and CEO of Curian Capital. “By continuing to expand the asset classes and investment options available on the platform, we are able to help advisors’ clients address a broad range of risk tolerances, time horizons and investment objectives. The addition of an alternatives asset class also reflects Curian’s commitment to utilizing the latest investment product innovations for the benefit of our clients.”
Curian’s alternatives asset class consists of exchange-traded funds (ETFs) whose underlying investments include, but are not limited to, commodities, foreign currencies and private equity. Curian selects the ETFs that make up its alternative asset allocation, but the firm does not directly manage the underlying strategies or specific securities comprising the investments. The new alternatives asset class is an optional investment selection that can be used in conjunction with all of the implementation strategies available on the Curian platform.
“Curian’s value proposition is built upon the concept of delivering the benefits of institutional money management and customizable account portfolios to mainstream investors,” said Steve Young, chief investment officer for Curian Capital. “We continue to enhance the platform to give clients a greater level of control over their portfolios and provide the opportunity for maximum diversification and efficiency.”
Curian currently offers a variety of customization options within its managed account portfolios, including eight tax-management options, multiple equity and fixed-income implementation strategies and an assortment of different asset classes, such as international equity and real estate. Curian clients also have the ability to exclude individual securities or up to 14 social sectors based on their values and investment objectives.
For more information about Curian’s Custom Style Portfolios and the new alternatives asset class, registered investment advisors, broker-dealers and financial institutions can visit www.curian.com or contact the Curian Sales Desk at (877) 847-4192.
About Curian Capital
Curian Capital, LLC (www.Curian.com) is a registered investment advisor providing innovative fee-based separately managed accounts to financial professionals through a state-of-the-art technology platform. The company has $3.2 billion in assets under management as of 9/30/2008, and ranks among the top 10 third party managed account vendors in the industry by AUM (source: Cerulli Associates).
Curian Capital is an indirect subsidiary of Prudential plc (NYSE: PUK - News), a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world’s leading financial service groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for 160 years and had more than $509 billion in assets under management as of 6/30/2008. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
Contact:
Curian Capital, LLC Andrew Silver 303.224.7542 andrew.silver@curian.com
Source: Curian Capital, LLC
Max New York Life Insurance Ranked among the ‘Best Companies to Work For’ in the BT-Mercer –TNS Survey
Posted by Steven Wevodau
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First & Only Insurance Company to be Featured in Top 10 of the Survey Since its Inception in 2001 New Delhi, Delhi, India, Wednesday, January 21, 2009 – (Business Wire India) |
SEC sued to overturn index annuity regulation
posted by Steven Wevodau
January 16, 2009
The plaintiffs, who have grouped together to form the Coalition for Indexed Products in Washington, filed only a two-page petition this morning, which is to be followed by a lengthier complaint.
They asked the court to overturn the rule, which would bring index annuities under SEC regulation as securities for the first time, and stop the SEC from implementing or enforcing it, claiming that the rule is unlawful under the Securities Act and under the Administrative Procedure Act.
“It’s a legally mistaken rule that will impose enormous costs on the industry, subjecting it to unnecessary and duplicative regulation,” said Eugene Scalia, a partner in the Washington office of Los Angeles law firm Gibson Dunn & Crutcher LLP.
He led the U.S. Chamber of Commerce’s successful defeat of the SEC’s mutual fund governance rule in 2006
That rule, opposed by the mutual fund industry, would have required fund companies to be headed by independent chairmen.
The SEC issued the index annuity rule, based on reports of marketing abuses of the annuity products, which offer minimum guarantees as well as the prospect of higher market returns.
The SEC has said that investors can lose money on the products due to high surrender charges if investors sell them during a lengthy initial holding period.
But the plaintiffs argue that the products are insurance policies, which are regulated by the states under the 1933 Securities Act.
“In this instance, the states told the commission repeatedly that they were carefully regulating these products, and they vigorously opposed the rule,” Mr. Scalia said.
“The commission did not find that state regulation was inadequate. It did not find that there were widespread sales practice abuses. And in fact, it said that whether there were abuses was irrelevant to their decision to regulate. Respectfully, this rule consumed an enormous amount of SEC resources. It will impose hundreds of millions of dollars of cost on the industry, and it’s bad law and bad policy to say that whether the rule is needed is irrelevant given all the other challenges currently before the SEC,” Mr. Scalia said.
SEC spokesman John Nester said the agency has no comment on the suit.
American Equity names Carlson CEO, shuffles ranks
American Equity names Carlson CEO effective Jan. 1, details other succession changes
Carlson will be CEO and president. A lawyer and an accountant, she has been CFO and general counsel of the parent and its main operating unit, American Equity Investment Life Insurance Co., since 1999.
Vice chairman John M. Matovina was named CFO and treasurer. He had been a financial consultant to the company.
The company said Kevin R. Wingert would resign as president of the life insurance subsidiary and as a director of the parent on Jan. 1 to form his own business to market the company’s products.
American Equity’s subsidiaries underwrite fixed-rate and index annuity and insurance policies.
Shares of American Equity rose 10 cents to $4.27 in late-morning trading.
American Equity Announces AEL Management Succession
WEST DES MOINES, Iowa–(BUSINESS WIRE)–American Equity Investment Life Holding Company (NYSE: AEL - News), today announced the implementation of a senior management succession plan as approved by its Board of Directors and David J. Noble, Chairman. Mr. Noble, who founded the company in 1995, has served as its Chairman, Chief Executive Officer, President and Treasurer from inception and led the Company through its dramatic growth over the last decade. Commented Mr. Noble: “I have built a senior management team who possess substantial industry experience as well as many years of working effectively together. The time has come to call upon them to assume full responsibility for the day-to-day management and operations of the Company. I am tremendously proud of American Equity and the people who helped me build it.”
The management succession plan includes the following changes in the executive ranks of the company and of its primary operating subsidiary, American Equity Investment Life Insurance Company (“American Equity Life”), effective January 1, 2009:
AEL:
John M. Matovina, Vice Chairman, Chief Financial Officer and Treasurer
Wendy L. Carlson, Chief Executive Officer and President
American Equity Life:
Ron Grensteiner, President
Debra J. Richardson, Chief Administrative Officer, Executive Vice President and Secretary
Mr. Noble will remain as Chairman of the Board of AEL as well as American Equity Life. All other executive positions within the Company remain unchanged.
Kevin R. Wingert will resign as President of American Equity Life and as a Director of AEL and American Equity Life effective January 1, 2009, in order to form his own business as a national marketing organization. He intends to principally market American Equity Life products through a new agency force he will create. Commented Mr. Wingert: “I’m fortunate to have had such a great relationship with Mr. Noble and the entire AEL team, and I’m looking forward to partnering with them in the future on products and services for agents.”
Biographical information concerning Ms. Richardson, Ms. Carlson, Mr. Matovina and Mr. Grensteiner is as follows:
Debra J. Richardson has served as Senior Vice President and Secretary of AEL and American Equity Life since 1996. At the Company’s inception, Ms. Richardson became its second employee after Mr. Noble. She has served as a Director of AEL since September 2008 and as a Director of American Equity Life since June 1996. Ms. Richardson has over thirty years experience in the insurance industry, including nineteen years with The Statesman Group, Inc. (“Statesman”) where she served in various positions including vice president-Shareholder/Investor Relations and Secretary.
Wendy L. Carlson has served as Chief Financial Officer and General Counsel of AEL and American Equity Life since June 1999. She has served as a Director of AEL since September 2008 and as a Director of American Equity Life since June 2006. Prior to joining AEL, Ms. Carlson was a member of the law firm of Whitfield & Eddy, PLC, where she practiced law in the areas of insurance, finance, securities and taxation. Ms. Carlson acted as outside counsel to American Equity from 1995, when it was formed, until she joined the company in 1999. Ms. Carlson is also a certified public accountant.
John M. Matovina has served as Vice Chairman of AEL since June 2003. Prior to being appointed Vice Chairman, Mr. Matovina was a private investor since 1996 and a financial consultant to the Company from 1997 to 2000. He has served as a Director of AEL since June 2000 and as a Director of American Equity Life since June 2003. From November 1983 through November 1996, he was a senior financial officer of Statesman and many of its subsidiaries, and prior to Statesman’s acquisition in September 1994, he served as Statesman’s Chief Financial Officer, Treasurer and Secretary. Mr. Matovina is a certified public accountant and has more than 25 years experience in the accounting and insurance industries.
Ron Grensteiner has served as Senior Vice President of Marketing for American Equity Life since November 1996. At the Company’s inception, he and Mr. Wingert comprised its marketing department and together with Mr. Noble built American Equity Life’s agency force which today stands at over 46,000 licensed, independent sales agents. Prior to joining American Equity Life, Mr. Grensteiner was a senior marketing officer of Statesman’s principal operating subsidiary. Mr. Grensteiner has over 30 years experience in the insurance industry.
ABOUT AMERICAN EQUITY
American Equity Investment Life Holding Company, through its wholly-owned operating subsidiaries, is a full-service underwriter of a broad line of annuity and insurance products with a primary emphasis on the sale of fixed-rate and index annuities. The company’s headquarters are located at 5000 Westown Parkway, West Des Moines, Iowa, 50266. The mailing address of the company is: P.O. Box 71216, Des Moines, Iowa, 50325. For more information, visit our website www.american-equity.com.
Americans React To Market Volatility: AXA Equitable Study Finds Significant Shift In Consumer Attitudes And Behavior
Research Underscores the Priority of Income Guarantees and Trusted Financial Advice; Key Differences Also Exist Along Gender Lines
NEW YORK, Nov. 20 /PRNewswire-FirstCall/ — AXA Equitable Life Insurance Company announced today results of an October 2008 study that revealed the consumer attitudes and behaviors of Americans have shifted rather dramatically in the past six months. Among the most notable results, almost eight in 10 of those polled (78%) ranked income guarantees as a top financial priority, up 16 percentage points from a similar AXA Equitable poll conducted in April.
“It’s no surprise that attitudes and behaviors have changed, especially given the period of economic instability we’re experiencing,” said Barbara Goodstein, executive vice president and chief innovation officer for AXA Equitable. “What is striking, however, is the heightened priority being placed so quickly on securing a stream of lifetime income.”
The AXA Equitable study also found that those placing a priority on protection from outliving retirement savings increased dramatically, from 59 percent six months ago to 71 percent in October. Securing protection against market conditions also increased considerably with 68 percent ranking it as a priority, compared to a little more than half (53%) back in April.
Other notable findings from the October study included:
Consumers Are Almost Divided Between Waiting It Out and Taking Action
The study found that slightly more than half of those polled (54%) said that they have not made financial changes, nor do they intend to do so. For the 25 percent of those who have thought about doing something, the actions most considered included meeting with an advisor (62%), reallocating investments (47%) or making withdrawals (24%).
Of the 21 percent that have actually taken action amid the volatility, 67 percent said that they reallocated investments, 56 percent bought products like annuities, life insurance and stocks, and 24 percent made withdrawals from 401(k) or 403(b) accounts or liquidated personal investments.
Information Found on the Web, Trust Found in Financial Professionals
The AXA Equitable study also found that of all the sources to learn about finances, almost half of those polled (48%) sought information from news and financial Web sites. Other preferred sources included newspapers (45%), financial professionals (35%) and magazines (15%).
Consumer perception shifted when polled on trust, as 61 percent ranked financial professionals the most trustworthy - 10 percentage points more than financial Web sites (51%) and 20 percentage points more than news Web sites (41%).
“The fact that people are using the tools at their disposal to educate themselves is very encouraging,” said Ms. Goodstein. “But more interesting is that our study also illustrates that people still view the relationship cultivated with a financial professional as invaluable and better positions them to make sound decisions.”
Women More Concerned About the Future, Men More Likely to Act Now
Among the most compelling differences along gender lines, the AXA Equitable study found that women are more concerned amid the current market turmoil about their retirement savings than male counterparts. Specifically, 84 percent of women polled rated having a guaranteed source of lifetime income as “extremely important,” compared to just 73 percent of men.
Women are also significantly more concerned about protecting retirement income from market downturn as 75 percent viewed it as “extremely important,” compared to just 60 percent of men.
Although more concerned than men about the future, the study found that women are less likely to make changes in response to current market conditions. Specifically, more than half of men polled (55%) said that they have reallocated money in an employer-sponsored account, compared to just 40 percent of women. In addition, 29 percent of men have either withdrawn money from an employer-sponsored account or mutual funds, or sold stocks, compared to 19 percent of women.
“Women are clearly focused on protecting retirement income and have been responding more conservatively as a result,” added Ms. Goodstein. “Regardless of whether you’re a man or woman, it’s important to evaluate your current financial situation and make the well informed decisions that help secure a strong financial future.”
About the Study
AXA Equitable conducted an online survey among 400 randomly chosen U.S. consumers who were between the ages of 35 to 70, with household incomes of $75,000 or higher. The research was conducted by a third-party independent research firm, OTX Research. The study was fielded in October 2008, and comparisons are made to a similar survey conducted in April 2008. Based on the size of the study sample, if the study were to be repeated 20 times, 19 times would yield results within +/- 5%.
How Boomers Will Confront, Impact & Adapt to the Next 20 Years
WESTPORT, Conn.–(BUSINESS WIRE)–Baby Boomers may not recognize themselves and their surroundings by the year 2028 as a result of an evolving global environment and marketplace. How they adapt and mitigate risk as we move into the future is the subject of a new project by the Institute for the Future done in conjunction with the MetLife Mature Market Institute.
Developed through ethnographic profiling of a diverse group of those born between 1946 and 1964, Boomers: The Next 20 Years, Ecologies of Risk, paints an extraordinary new picture of this much-studied demographic as they confront a longer lifespan, the widest rich-poor gap in recent generations, a global energy shortage, new economic realities and a Web-based infrastructure. The conclusion: boomers will, as they have in the past, be resourceful and self-reliant, forming economic, health and social collectives – and families of choice – to adapt to the future.
“With the world focused on the collapse of financial markets, it is especially important to understand the big picture that boomers face over the coming decades,” said Kathi Vian, ten-year forecast director for the Institute for the Future. “They have crafted complex ecologies of risks and resources throughout their adulthood, and they may well manage those ecologies with surprising skill – and sometimes surprising innovations – as they age.”
According to Boomers: The Next 20 Years, Ecologies of Risk, boomers will distribute the stress and burden of managing risk across networks of people, some based on kinship and others on affinity or interest. They will plan more, work longer and become more entrepreneurial. They will also take part in peer-to-peer networks of people that will perform some of the financial services that banks and other financial institutions perform today.
Ecologies of Risk projects the following aspects of the boomers’ lives:
- Family: New Relationships, New Responsibilities – Emerging patterns of marriage, remarriage and childbearing, including alternative family arrangements, will change the way we currently view family. Families will be “chosen,” not just inherited. There will be peer caretaking and social care matching services. Boomers will be challenged by greater distance between family members and greater responsibility for the financial well-being of children and grandchildren, contributing to slowed personal wealth accumulation.
- Global Economy: More Competition, More Collaboration – Boomers will be the first generation to age in a truly global economy, giving them access to more learning resources, new ways to collaborate, financial products from around the world and healthcare abroad, dubbed “medical tourism.”
- Community: Gaps and Gains – Boomers will use new ways to build communities to close the gap created by decreased mobility, polarization, social fragmentation and health challenges. Like their younger counterparts they will participate in online social networks, virtual retirement communities and community blogging. They will be challenged by elder abuse, anti-boomer backlash and ageist zoning laws.
- Environments: Unsustainable Pasts, Sustainable Aging – A degradation of the environment will bring risks from new diseases and fewer sustainable food and energy sources. These challenges will bring food and energy collectives, do-it-yourself (DIY) products and green technology.
- Personal: Health and Identity – Boomers will live longer, but will suffer from new chronic diseases and widespread depression from aging, illness and other concerns. They will manage their health differently with biometrics and online tools that will challenge privacy, but will allow them to share and benefit from new information found on all parts of the globe.
- Institutions: Dissatisfaction, Distrust, Reinvention – An erosion of the trust people have had in institutions will bring new banking/investment vehicles, peer-to-peer loans and new structures to manage new capitals. Financial security will be threatened by diminished government and employer safety nets and low personal savings.
“Faced with increasing longevity and the need to have lifetime income, boomers will likely reset their compasses,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. “An adaptive, disciplined and flexible self is the best asset that they can bring to the future.”
Boomers: The Next 20 Years, Ecologies of Risk, is a three-phased project of how baby boomers will age over the coming decades. The first phase mapped boomers’ 20-year horizon, identifying seven big stories that will shape their future (the boomer map). The second phase consisted of interviews with boomers to define the 10 “Action Types” that help us understand how different boomers will make different choices as they confront the challenges of the future. The final phase, “Ecologies of Risk,” uses these insights to create focused forecasts of the boomers’ world. Six organizations, including major corporations and AARP, were involved in the project.
The Institute for the Future
The Institute for the Future (IFTF) is an independent nonprofit research group. The IFTF works with organizations of all kinds to help them make better, more informed decisions about the future. For more information about the IFTF visit, www.iftf.org.
MetLife Mature Market Institute®
Established in 1997, the Mature Market Institute (MMI) is MetLife’s center on aging and the 50+ market. MMI’s groundbreaking research, gerontology expertise, national partnerships and educational materials work to expand the knowledge and choices for those in, approaching or caring for those in the mature market.
MMI supports MetLife’s long-standing commitment to identifying emerging issues and innovative solutions for the challenges of life. MetLife, a subsidiary of MetLife, Inc. (NYSE: MET - News), is celebrating 140 years and is a leading provider of insurance and financial services to individual and institutional customers.
For more information about the MetLife Mature Market Institute, please visit: www.maturemarketinstitute.com.
To download a copy of Boomers: The Next 20 Years, Ecologies of Risk and the Boomer map, visit www.maturemarketinstitute.com under “What’s New.” You may also write to request a copy from the MetLife Mature Market Institute, 57 Greens Farms Road, Westport, CT 06880. Other documents are available at: www.iftf.org.
Categories
- Aetna
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- Citigroup Inc. - Steven Wevodau
- EquiTrust Life Insurance Co. - Steven Wevodau
- FBL Financial Group Inc. - Steven Wevodau
- Genworth Financial - Steven Wevodau
- Hartford Financial Services Group - Steven Wevodau
- ING Americas - Steven Wevodau
- Insure.com - Steven Wevodau
- Jackson National Life Insurance Company - Steven Wevodau
- John Hancock
- Lincoln Financial Securities - Steven Wevodau
- Lincoln National Corp. - Steven Wevodau
- Manulife Financial Corporation
- Mass Mutual Financial Services - Steven Wevodau
- MetLife - Steven Wevodau
- MetLife Inc.
- Midland National - Steven Wevodau
- National LTC Network - Steven Wevodau
- Other
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- Protective Life Corp. - Steven Wevodau
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- Prudential - Steven Wevodau
- Steve Wevodau - Life Insurance
- Sun Life Financial - Steven Wevodau