Change, No Damage?

What I noticed was there is a requirement for in-force illustrations, and people may have thought they bought one thing and whenever you have to give them an in-force illustration with a current disciplined scale, they're going to realize they bought something else.

I think many companies will have serious problems with policyholder retention.

  -- MARK J. GREENE

1995 - PRACTICAL ILLUSTRATIONS AND NONFORFEITURE VALUES, Society of Actuaries - 14p 

We can see why it would be confusing and difficult to explain… without eroding some confidence on the consumer's part.

-- Rachel (Texas)

2019/11/15 - IULWG Conference Call - <Bonk>

He (ACLI - John Bruins) said the ACLI is concerned about the reaction that may be received from consumers when their policy illustration changes, even though no changes have been made to the product being illustrated.

He noted that several companies have indicated receiving negative reactions from policyowners when their policy illustration changed. 

2016-4, LATF NAIC

So if somebody could think of a way to get to the consumer without causing real problems among recent buyers, who are our most fragile customers, we would like to hear it.


-- JOHN W. KELLER <Northwestern Mutual>

1991 - Illustrations, Society of Actuaries

The working group's concern was how to bring about a change without damage to the marketplace.

1993-4, NAIC Proceedings

  • I sincerely believe we have a flawed instrument in today's sales illustrations.
  • ...we did not communicate the impact of change as well as ...we should have.
  • Our biggest mistake would be to delay.
  • I don't believe the consumer will tolerate or forgive us, let alone the regulators, if we do nothing.

--  Robert Nelson, chairperson of the National Association of Life Underwriters (NALU) Task Force on Illustrations - <Currently NAIFA>

1993 - SALES ILLUSTRATIONS - WE CAN'T LIVE WITH THEM, BUT WE CAN'T LIVE WITHOUT THEM!, Society of Actuaries