Blog: Insurance groups support new Texas law enhancing annuity protections – Financial Regulation News – Financial Regulation News

Three consumer advocacy organizations are espousing the benefits of recently passed Texas legislation that lawmakers said would bolster protections for those seeking lifetime income through annuities.

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The measures enhance the standards financial professionals are mandated to follow while preserving consumers’ ability to access tools needed for a secure retirement, per the American Council of Life Insurers (ACLI); Texas Association of Life and Health Insurers (TALHI); and the National Association of Insurance and Financial Advisors (NAIFA).

“Unlike a fiduciary-only approach that limits choices for consumers, these measures make sure savers, particularly financially vulnerable middle-income Americans, can access information about options for long-term security through retirement,” ACLI President and CEO Susan Neely. “We hope additional states adopt these new standards so that more consumers planning for retirement can benefit from these protections.”

TALHI President and CEO Jennifer Cawley said running out of money is among retirees’ biggest fears.

“Annuities are the only product on the market that can provide a guaranteed stream of income and address this concern,” she said. “Thanks to the Texas Legislature’s leadership, Texans planning for retirement will have the tools they need to secure peace of mind no matter how long they live.”

NAIFA–Texas President Danny O’Connell said the new legislation imposes strict requirements on financial professionals, ensuring they will act in the best interest of Texas consumers they serve.

“Life insurance companies and agents strongly support this new law,” he said. “It provides Texans planning for retirement confidence that financial professionals will offer savings recommendations that address the unique situations of individuals and families, rather than their own financial interest.”

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