(Fairfax, Va.)—As the financial services industry faces unprecedented regulation in the aftermath of the 2008 economic crisis, NAILBA organized a special meeting to galvanize the industry stakeholders—both carriers and BGAs alike—to craft a unified response.

Held during the association’s annual trade show, NAILBA 28, the Independent Distribution Partners Meeting brought together nearly 50 representatives from throughout the industry to build awareness of and create a sense of urgency about the regulatory pressures being bandied about in Washington, D.C., and to encourage them to get involved in the political process.

“We are in the midst of the most challenging time in our industry’s history,” said 2010 NAILBA Chairman Mark Rosen. “Given today’s environment, insurance seems to be routinely used as a dirty word and, as a result, we are being inundated with regulatory and legislative proposals that could impact our very existence—all under the guise of consumer protection.”

“Last fall, we saw changes in the American economy and investment mindset that hadn’t been seen since the Great Depression, and in the year since, we’ve witnessed a rise of skepticism unlike anything we’ve experienced,” NAILBA Government Affairs Committee Co-Chair Leon Huffman said. “The financial crisis caused a breach of trust between the American people and the financial services industry and, combined with unemployment over 10 percent, has exacerbated the ‘us versus them’ mentality.”

It’s this kind of furor over these issues that make BGAs vulnerable to one-sided legislation created under the guise of consumer protection, he said.

“There is an overarching and aggressive move to regulate our business—our products, our fiduciary role, our suitability role and even our supervisory responsibilities over our agents.”

Ultimately, though, it is the consumer that an independent distribution channel protects, according to Rosen. As such, he said, the onus is on those in the industry to spread awareness of this advantage among consumers and regulators alike. The recent meeting successfully started the dialogue.

“We promote freedom of financial choice by offering consumers access to multiple product options through independent agents,” he said. “In today’s world, it is incumbent upon all of us to collaborate with each other and with NAILBA to educate our partners and elected leaders about the value of independent distribution and its role in promoting consumer protection.”

###

The National Association of Independent Life Brokerage Agencies (NAILBA) is the premiere insurance industry organization promoting financial security and consumer choice through the use of independent brokerage distribution.  NAILBA member agencies represent 250,000 producers who deliver more than four billion dollars in first year life insurance premiums annually. For more information visit http://www.nailba.org