Financial officers at a number of major life insurance companies say they're wary when it comes to knowledge of key government legislation that could affect the way they provide protection to consumers.
A survey by Towers Watson found many chief financial officers were not confident in their knowledge of changing regulatory guidelines and many question whether their company will be able to keep up with the changes. According to the report, less than 20 percent say they are knowledgeable when it comes to the changes, while only 60 percent have begun preparations for new regulations that could change the way they handle their life reserves.
"While somewhat alarming, these results may reflect the fact that effective dates for many of the principle-based requirements are either still unknown or at least three years away," said Craig Buck, Americas Life practice leader. "It is critical for companies to evaluate the impact of the new reserving and capital requirements well in advance of the effective date to better understand the potential implications."
It's not yet clear how regulations could affect consumers looking to buy life insurance, making it important for them to seek the assistance of a financial advisor and consider term life insurance from a insurer with a strong rating.