The American Council of Life Insurers (ACLI) issued the following statement in connection with a report issued today by Sen. Elizabeth Warren (D-MA) on annuity sales and distribution practices. Quotes below can be attributed to Carl Wilkerson, ACLI Vice President and Chief Counsel, Securities & Litigation.
Washington, D.C., (October 27, 2015) – “Americans’ retirement security is a vital concern to life insurance companies. Life insurers offer annuities, which are the only financial products in the marketplace that guarantee lifetime income.
“We are disappointed with the report issued today by Sen. Elizabeth Warren (D-MA) because it may raise inappropriate and unnecessary worries among retirees and workers considering retirement about an insurance product that can provide financial security and peace of mind. Americans need continued, viable access to guaranteed lifetime income. Life insurers paid out $74 billion in annuity benefit payments in 2014.
“The senator’s report misrepresents the comprehensive regulatory framework that governs conduct in the sale of insurance products and protects consumers’ interests. Life insurers comply with laws that regulate permitted non-cash compensation practices and support their full enforcement.
“Life insurers remain fully committed to providing Americans the products and services they need to meet their financial and retirement security needs.”