the tools to better manage disruptions
DESCRIPTION
The Tools To Better Manage Disruptions . “RIIA is where you learn about and deal with our industry ’ s disruptions before others even know about them. ”. The executive knowledge, producer training and consumer research needed to manage through disruptions in the r etirement markets . - PowerPoint PPT PresentationTRANSCRIPT
Balance Sheet
Cash Flows & Life-Cycle
Profile
SpecificProducts
ClientRelationship
RiskManagement
Allocation
RetirementRisk
Profile
The Tools To Better Manage Disruptions
The executive knowledge, producer training and consumer research needed to manage through disruptions in the retirement markets
Thought-Leadership Expertise in Education Comprehensive Data
“RIIA is where you learn about and deal with our industry’s disruptions before others even know about them.”
2012: RIIA’s Market Insight (RMI) Helps YouPlan For and Manage Disruptions
Manufacturers manage:– Business Plans and Budgets– Product Launch Performance– Sales and Marketing
Requiring Comprehensive Data about:– Demand– Distribution Channels– Supply
Data Vendors deliver silo-specific:– Estimates– Forecasts– Actuals
Comprehensive Data
• The Comprehensive View Across the Industry’s Silos
• The Comprehensive View Across Vendor Silos
• Standardization and Validation
SpendingProfiles
Future Healthcare
Profiles
Future Spending
Future Financials
Healthcare Profiles
FinancialProfiles
RMI 360 View of the Market
Depository Trust & Clearing Corporation(The RIIA Views)
Distribution
Contracts
Insurers
PriceWaterhouse
Insured Income Portfolio
Equity Income Portfolio Unmanaged
Income Portfolio
StrategicBusinessInsights
Morningstar
InvestmentAnalysis
WealthyRetired
AffluentRetired
Mass Market Retired
WealthyPre-Retired
AffluentPre- Retired
Mass Market Pre- Retired
WealthyBuilders
AffluentBuilders
Mass Market Builders
FutureDemand
Advisory BoardStrategic Direction & Guidance, Component Integration, Special Research Projects
Product Sales &Channels
CurrentDemand
Partner Firms – Brightworks Partners, Cannex, Ernst & Young, Gallant Consulting, Healthview Services, Sagence Group
RIIA Market Insight Program
RIIA Market Insight Program
Featured Partner for Today’s Presentation
Depository Trust & Clearing CorporationInsurance & Retirement Services
DTCC Insurance & Retirement Services
• DTCC, which through its subsidiaries provides clearing, settlement and information services is:• Industry owned
• Operates at-cost
• Settles the vast majority of securities transactions in the US ($1.7 quadrillion in 2011)
• I&RS processed over $156 billion in annuity inflows and out flows in 2011
• Launched Analytic Reporting for Annuities in June 2011
• Analytic Reporting is an online information solution aggregating transaction data
Cutting Edge Tracking Of Annuity FlowsOrganization of Analytic Reporting for Annuities Service
CarriersDistributors Contracts Contract Entities
• Firms• Financial
Professionals
• Owner• Annuitant• Financial
ProfessionalsChannel Type Account Type
Product Type Geography
Inflows Outflows Net flows Transactions
Key Metrics
Group, Sort, Slice and Calculate Market Share by Combinations of:
Competitor Set
• Firms • Products
RIIA views of DTCC data use the following channel definitions:
Distribution Channel Classification
Characteristics Advisors Examples
• Comprised of large, & small broker-dealers
• Independent Contractors
• LPL• NFP
• National network• Self-clearing, NYC-based • Employees of the B/D • Merrill Lynch
• Wells Fargo
• Primarily regional• Some Investment banking • Employees of the B/D • CBIZ
• Edward Jones
• Life insurers• National network
• Career agent employees & some contractors
• AXA Network• Mass Mutual
• Retail banks, thrifts, etc.• Brokerage services • Employees & TPMs • First Tennessee
• HSBC
• Clearing & other platforms • Fidelity• Pershing
Independent
Wirehouse
Bank
Regional
Insurance
Other
Channel
In 2011, The RIIA Independent channel accounts for almost a third (28%) of the $90.2 Billion DTCC Annuity inflows
2011 Annuity Inflows ($MM) in RIIA Defined Distribution Channels
28% 18% 14% 8% 14% 17%
In flows 24,989 16,224 13,006
7,493 12,968 15,522 90,205
Out flows -14,290 -12,805 -11,039
-4,123 -10,473 -13,485 -66,216
Net flows 10,699 3,419 1,967
3,370 2,495 2,037 23,989
Net flow as % of In flow
43% 21% 15% 45% 19% 13% 27%
TOTALIndependent Wirehouse Regional Ins Bank Others
But the Independent channel accounts for almost half (45%) of the total net flows in DTCC’s non-captive channel transactions
2011 Annuity Flows by Channel
Looking at major product types, we see the Independent channel doing well in both Variable and Fixed Annuity product types…
All
Inflows 24,989 16,224 13,006 7,493 12,968 15,522 90,205Outflows -14,290 -12,805 -11,039 -4,123 -10,473 -13,485 -66,216Netflows 10,699 3,419 1,967 3,370 2,495 2,037 23,989Net % of Inflow 43% 21% 15% 45% 19% 13% 27%
Variable Products
Inflows 20,326 10,119 10,143 5,707 6,643 10,768 63,707Outflows -10,677 -8,117 -8,195 -2,806 -3,825 -8,394 -42,014Netflows 9,649 2,002 1,948 2,901 2,818 2,374 21,693Net % of Inflow 47% 20% 19% 51% 42% 22% 34%
Fixed Products
Inflows 1,887 463 683 135 5,322 2,795 11,284Outflows -1,548 -1,942 -1,602 -239 -5,996 -3,451 -14,777Netflows 339 -1,479 -919 -104 -674 -656 -3,493Net % of Inflow 18% -320% -135% -77% -13% -23% -31%
Independent Wirehs Regional Ins Bank Others All2011 Flows ($MM)
Distributor A: 98% Distributor B: 17% Distributor C: -79%
But performance of individual firms within a channel varies greatly
18%
2011 Annuity Flows by Type & Channel
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr30%
35%
40%
45%
50%
55%
60%
65%
Qualified Non-qualified Source: DTCC Analytic Reporting for Annuities
Inflows by Account Type
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
8,000,000,000
9,000,000,000
10,000,000,000
11,000,000,000-2,000,000,000
-1,000,000,000
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
IRA
Other qualified
Non-qualified
Source: DTCC Analytic Reporting for Annuities
Retention by Account Type (Q1 2012)
Retaining assets
Losing assets
Sales territory zip codes My inflows ($M)
Total DTCC processed inflows ($M) My market share
01222 1.12 5.62 19.93%02169 0.90 3.20 28.13%02333 0.79 3.11 25.40%02026 0.54 1.54 35.06%02062 0.32 1.42 22.54%02021 0.26 0.98 26.53%Total 3.93 15.87 24.76%
My sales territory My inflows ($M)Total DTCC processed
inflows ($M) My market shareVariable annuities 2.55 10.32 24.76%Fixed annuities 0.98 3.17 30.95%Group annuities 0.39 2.38 16.51%
Annuity Cash Flows by Geography
Annuity Cash Flows by Geography
• Create custom sales territories
• Benchmark performance in your territories against the aggregate of transactions processed by DTCC I&RS
• Focus and re-focus sales and marketing activity
• Evaluate the impact of sales and marketing programs
• Determine relative success – did you outperform the aggregate
Benefits of processing through DTCC I&RS
• Over 124 carriers and 128 distributors, including the major clearing firms, process annuity and other insurance transactions through DTCC
• Standards for processing transactions, commissions, positions and applications
• Efficiencies• Transactions• Paying commissions• Collecting commissions
• Driving additional value by delivering information services to support members business management and decision making process
RIIA Market Insight Program Benefits
• RIIA – Join us to direct a program of combined research and databases designed to present members with a “View Across the Silos” for the retirement income market
• DTCC - Gain insight that will enable financial services firms to improve their business and use Analytic Reporting to monitor results relative to the market and segments of the market
• Sagence - Work with a unique advisory firm specializing in helping organizations drive their businesses with information and insight
RIIA Membership
RIIA Advisory Board Seat
RIIA RMJ Advertisment
DTCC Analytic Reporting
Subscription
DTCC Analytic Reporting Advisory
Panel Seat
RIIA Member Non-RIIA Member