Dearborn National

Fort Dearborn Life Insurance Company offers group benefits insurance to meet the recruiting needs of employers and the security needs of employees. The company also provide individuals planning for retirement a line of fixed and index annuity products.
Dearborn National Product Reviews
Products Offered


General Information
Websitehttp://www.fdl-life.com
TypeInsurance Company
Founded
Ownership
CountryUSA
Contact Information
Address1020 31st Street
Downers Grove, IL 60515-5591
Phone800-633-3696
Fax

Information & Articles about Dearborn National

A very good article from Darla Mercado at Investment News discusses the current challenges that insurers face in the fixed annuity market.

The challenges basically involve two issues:

  1. Interest rates--and particularly interest rate spreads--are very low.  Low interest rate spreads make it difficult for insurance companies to earn income on fixed annuities since they are spread-based products.
  2. Increased regulatory requirements make it more difficult and expensive to sell fixed annuities--particularly through independent brokers.  Suitability requirements at the point of sale make it difficult for insurers to manage the independent broker channel since it is so diffuse.  Banks and broker-dealers are easier to manage because top-down controls can be imposed by the parent organization.  In addition, the parent organization is able to assume more responsibility  and liability since they are more resource rich than individuals.

The case is supported by recent departures (Transamerica, Dearborn National) from the fixed annuity market and certain fixed annuity channels (i.e. independent insurance brokers).

The article can be read by clicking here.

2,755 reads

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