Since starting the company in 2005, Moore Market Intelligence has educated thousands of insurance regulators on the realities of the indexed annuity and indexed life markets. They have travelled to numerous state insurance divisions, at their own expense, to ensure that regulators are up-to-date on how indexed insurance products truly work. After years of experience, the staff have found that regulators are often prone to being influenced by negative media in the insurance market. Their efforts ensure that these policy-makers know vital statistics about these products. Useful statistics include the following data on indexed annuities (as of 4Q2015):
- The average surrender charge for indexed annuities is ten years
- The average first-year surrender penalty for indexed annuities is 10.61% (and lower for older-age annuitants)
- The average street level for indexed annuities is a mere one-time 5.57%
- Two-tiered annuity sales account for 0.00% of indexed annuity sales
The research provided by Moore Market Intelligence has been invaluable in dealing with the question of indexed annuitiesâ€™ securities status. The company prepared the insurance industry and assisted broker dealers (B/Ds) when the Financial Industry Regulatory Authority (FINRA) issued their Notice to Members 05-50. No single firm has fought harder in opposition to the Securities and Exchange Commissionâ€™s (SEC) Rule 151A. Moore Market Intelligence made their services available, on a pro bono basis, to every insurance company, general agency, marketing organization, and agent in the insurance industry, in preparation of their comments opposing the Proposed Rule 151A. Sheryl Mooreâ€™s passion is undeniably evident in her personal comment against the rule which suggests that indexed annuities are securities. Her desire to keep the industry fighting against the rule is apparent through her 151A files which provide every article, document, blog, and piece of documentation relevant to the rule at the publicâ€™s disposal. Sheryl believes that the matter of insurance regulation should be left to the individual state regulators, not the SEC.
It was the work of Ms. Mooreâ€™s firm that dispelled the myth that indexed annuities have unmanageable complaint levels. Moore Market Intelligence was able to provide the SEC and other regulators with documentation, showing that complaints on indexed annuities have never really been problematic. Their data provides evidence that these complaints have dropped steadily over the past few years and average less than four complaints per insurance company, annually. This data was paramount in the fight against 151A.
Moore Market Intelligence has long-fought for additional protections in the indexed UL market. The company has consistently provided warning to regulators that hyperfunding, equity harvesting, and over-illustrating will make IUL the target of the next industry class action lawsuit. The research firm fought for suitability standards in the market, and standardization in the use of IUL illustrated rates which ultimately led to the passing of Actuarial Guideline 49 (AG49).
The staff of Moore Market Intelligence regularly assists the National Association of Insurance Commissioners (NAIC) in their work and understanding of indexed insurance products. They have provided documentation and presentations to assist the organization in product illustrations, continuing education, complaints, suitability, and product marketing. Most recently, Sheryl Moore rewrote the Indexed Annuity Consumerâ€™s Buyers Guide, an NAIC resource that was more than a decade old. She thought it important to accurately reflect the market and products that are currently available by updating a consumer resource that is frequently used as a point-of-reference and issued with every indexed annuity sold today.