BISA Magazine - Quarter 3, 2016 - 30

SPECIAL SUPPLEMENT: SPOTLIGHT ON ANNUITIES Crisis is Not a Four-Letter Word Five reasons to remain optimistic post-DOL ruling. By John Burhoe I n 1853, Chef George Crum had enough of a customer who repeatedly sent his fried potatoes back to the kitchen, complaining they were too soggy and thick. As a result, Crum decided to slice the potatoes ridiculously thin and fry them so the slices were nearly burnt. The potato chip has been a staple of the snack food world ever since. Chaos can beget invention. Chaos is defined as "a state of utter confusion or disorder." Our industry has suffered from a touch a chaos leading up to the Department of Labor's recent fiduciary rule announcement. While the rule is meant to simplify the retirement savings journey for consumers, it has created chaos for financial institutions that provide these services. As the rule addresses how we conduct our business, it leaves much room for interpretation. Simply put, we have a lot to figure out and not a lot of time to do it. Through the interaction I enjoy with a great many of you, I see responses to the rule range from quiet confidence to sheer panic. At this early stage, there are few clear-cut answers. I am amused by the flood of emails I receive promoting those who claim to have the answers. The fact of the matter is that all of us are still working through the details and ramifications of our next moves. However, some institutions view the DOL announcement as something that might give them the opportunity to grow their business, or, to borrow from Malcolm Gladwell, a tipping point. Perhaps something good and lasting can come from this process of sorting through the chaos. Here are my thoughts as to why a positive outlook is not entirely out-of-line: One lesson I've learned stands out: If we work together, we can overcome our circumstances. The DOL rule is unique in that it impacts us all, not just a single company. Our joint efforts will bring innovation to fast forward our evolution to better help our clients. Crisis is not a four-letter word. In the past, I have had to manage my business through tremendous crises. One lesson I've learned stands out: If we work together, we can overcome our circumstances. The DOL rule is unique in that it impacts us all, not just a single company. Our joint efforts will bring innovation to fast forward our evolution to better help our clients. The DOL rule is step one. We have yet to hear from government and industry agencies about the expected state and federal judicial rulings. The DOL rule may just be the tip of the iceberg and more easily implemented regulation may be just below the surface. This is just another step in our industry's evolution. Change is a constant in our business. Whether there is market fluctuation, economic suffering, world geo-political events, or new regulations and restrictions, we have always evolved and adjusted for both our clients and our companies. We have already laid some groundwork for the future. Some companies have already addressed DOL rule topics. These companies, some of whom are the most Advertorial 30 www.bisanet.org confident about moving forward, can serve as templates for our own institutional responses to our new reality. The real issue is reaching the masses we are not reaching today. Average household penetration for investment programs in banks and credit unions is roughly 5 percent. How we respond and structure ourselves may help us better reach the other 95 percent. The bottom line is we need to adapt. At Great American, we have had the pleasure of working together with many of you in helping you shape your structures, products and policies. These discussions have borne fruit, with creative solutions that help make the customer experience even better. With so much more to come, it is time to lean on our trusted colleagues and partners. Solutions are the goal, but perhaps the journey to get there will make us all better. John Burhoe is vice president, financial institution for Great American Insurance Group - Annuities. http://www.bisanet.org

Table of Contents for the Digital Edition of BISA Magazine - Quarter 3, 2016

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BISA Magazine - Quarter 3, 2016 - Table of Contents
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BISA Magazine - Quarter 3, 2016 - Cover3
BISA Magazine - Quarter 3, 2016 - Cover4
https://www.nxtbook.com/nxtbooks/bisa/2017q4
https://www.nxtbook.com/nxtbooks/bisa/2017q3
https://www.nxtbook.com/nxtbooks/bisa/2017q2
https://www.nxtbook.com/nxtbooks/bisa/2017q1
https://www.nxtbook.com/nxtbooks/bisa/2016q4
https://www.nxtbook.com/nxtbooks/bisa/2016q3
https://www.nxtbook.com/nxtbooks/bisa/2016q2
https://www.nxtbook.com/nxtbooks/bisa/2016q1
https://www.nxtbook.com/nxtbooks/bisa/2015q4
https://www.nxtbook.com/nxtbooks/bisa/2015q3
https://www.nxtbook.com/nxtbooks/bisa/2015q2
https://www.nxtbook.com/nxtbooks/bisa/2015q1
https://www.nxtbook.com/nxtbooks/bisa/2014q4
https://www.nxtbook.com/nxtbooks/bisa/2014q3
https://www.nxtbook.com/nxtbooks/bisa/2014q2
https://www.nxtbook.com/nxtbooks/bisa/2014q1
https://www.nxtbookmedia.com