If you’re an annuity business owner, chances are things are slow for you right now. According to ThinkAdvisor it might be Washington’s fault. ThinkAdvisor lists five ways Washington could be hurting your annuity business.
1. Uncertainty over the U.S. Department of Labor’s fiduciary rule. ThinkAdvisor reports some advisors and insurers like the goals and ideas behind the fiduciary rule changes, but whether they’re against it or not, advisors and insurers are spending more time looking through the DOL website for new regulation drafts and subregulatory assistance that can help them figure out how the changes will actually take effect, rather than preparing clients for retirement.
2. Uncertainty over the American Health Care Act. Investors don’t know what will happen with health care reform and how that could affect their future.
3. Tax reform and retirement rule changes are on the back burner. Right now the focus is on alleged Russian involvement in the U.S. presidential election.
4. The Employee Benefits Security Administration has no head. EBSA is an agency of the United States Department of Labor that oversees the regulation and enforcement of rules relating to health and retirement benefits plans. So far President Trump has not nominated someone to head up the agency.
5. Congress isn’t helping the Federal Reserve Board expand the available money supply by cutting taxes or increasing spending. The Federal Reserve Board has kept interest rates low, which means life insurers and retirement savers aren’t getting as must back on assets invested in savings accounts, fixed-rate annuities or other fixed-rate investments. Ultra-low rates also hurt the yields insurers get on their bond portfolios.