the tools to better manage disruptions

16

Upload: ataret

Post on 25-Feb-2016

50 views

Category:

Documents


1 download

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 Presentation

TRANSCRIPT

Page 1: The Tools To Better Manage Disruptions
Page 2: The Tools To Better Manage Disruptions

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.”

Page 3: The Tools To Better Manage Disruptions

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

Page 4: The Tools To Better Manage Disruptions

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

Page 5: The Tools To Better Manage Disruptions

RIIA Market Insight Program

Featured Partner for Today’s Presentation

Depository Trust & Clearing CorporationInsurance & Retirement Services

Page 6: The Tools To Better Manage Disruptions

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

Page 7: The Tools To Better Manage Disruptions

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

Page 8: The Tools To Better Manage Disruptions

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

Page 9: The Tools To Better Manage Disruptions

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

Page 10: The Tools To Better Manage Disruptions

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

Page 11: The Tools To Better Manage Disruptions

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

Page 12: The Tools To Better Manage Disruptions

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

Page 13: The Tools To Better Manage Disruptions

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

Page 14: The Tools To Better Manage Disruptions

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

Page 15: The Tools To Better Manage Disruptions

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

Page 16: The Tools To Better Manage Disruptions

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