Columbian Changes

[rousemark]

Was just on the Columbian website and saw they are making changes to their FE and SI term effective 12/13/21due to the new non forfeiture requirements that go into effect 1/1/22. Supposedly there will be no change in FE rates.

The thing that riles me up is they are discontinuing the sale of their LP90 WL effective 12/13/21 until they can bring it into compliance "sometime early 2022". They have known about these requirements for over a year and they are just now working on bringing it into complacence? Someone should loose their job over that kind of incompetence.

Also, I wonder when they will get around to sending out a notice to the field force that does not check the website on a regular basis? Have always received good service from them but this is garbage. (rant over)

 

[Allen Trent]

The thing that riles me up is they are discontinuing the sale of their LP90 WL effective 12/13/21 until they can bring it into compliance "sometime early 2022". They have known about these requirements for over a year and they are just now working on bringing it into complacence? Someone should loose their job over that kind of incompetence.

Understand the frustration. However, with so few vendors in the industry having a near monopoly on some of the product aspects (ipipeline illustration, e-app technology, actuarial contractors) there just isn’t enough time to get every product from every carrier done in time. Especially when other regulations also changed like the 7702 premium rules & even some state specific items. Add all that to the fact they have to file each & every product change after to each states insurance division. Lastly, major labor issues going on in the US which have also impacted carriers & the 3rd party vendors that handle many of the actuarial & technology components.

I believe most carriers likely ranked each cash value product & ROP product as to most needed to least profitable/complicated & then started down the list. Also at a time pricing for a profit has been getting more difficult with the low interest rate environment

Crazy times.

PS. I am aware of a life carrier (and I am sure they are not the only one), but they don't handle any aspect of any of their product. They contract 3rd party Actuaries to price it. They contract 3rd party to handle all the tech to illustrate & apply for the policy. They contract 3rd party to Underwrite & process it. They contract a 3rd party vendor to even handle the inforce customer service.

 

[damadcrapper]

Allen - you are dead on. I would expect other carriers having the same issue. We may see announcements about repriced products not available in some states because of the backlog.

 

[Baseball7]

PS. I am aware of a life carrier (and I am sure they are not the only one), but they don't handle any aspect of any of their product. They contract 3rd party Actuaries to price it. They contract 3rd party to handle all the tech to illustrate & apply for the policy. They contract 3rd party to Underwrite & process it. They contract a 3rd party vendor to even handle the inforce customer service.

You’re going to see even more of this with technology companies like ethos and sprout working to do most of the tech side of the business.

 

[rousemark]

Understand the frustration. However, with so few vendors in the industry having a near monopoly on some of the product aspects (ipipeline illustration, e-app technology, actuarial contractors) there just isn’t enough time to get every product from every carrier done in time. Especially when other regulations also changed like the 7702 premium rules & even some state specific items. Add all that to the fact they have to file each & every product change after to each states insurance division. Lastly, major labor issues going on in the US which have also impacted carriers & the 3rd party vendors that handle many of the actuarial & technology components.

I believe most carriers likely ranked each cash value product & ROP product as to most needed to least profitable/complicated & then started down the list. Also at a time pricing for a profit has been getting more difficult with the low interest rate environment

Crazy times.

PS. I am aware of a life carrier (and I am sure they are not the only one), but they don't handle any aspect of any of their product. They contract 3rd party Actuaries to price it. They contract 3rd party to handle all the tech to illustrate & apply for the policy. They contract 3rd party to Underwrite & process it. They contract a 3rd party vendor to even handle the inforce customer service.

I still find it hard to believe that if a company started working on this as soon ss they knew it was going to be required that they would not have ot done by now.

 

[CasualT]

They're late. But at the same time other carriers are just now updating and raising rates THIS MONTH. If Columbian brings back LP90 with Eapp option I would be more open to using it.

 

[rousemark]

And, raise the non med limit to at least 100K instead of that silly 99,999.