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The House of Representatives has passed the Protecting the Right to Organize (PRO) Act (H.R. 842), a sweeping piece of labor legislation. Among its provisions, the PRO Act as passed by the House would reclassify many insurance and financial professionals as “employees” rather than “independent contractors” under federal labor law. NAIFA argues that such a reclassification will disrupt insurance and financial services business models and limit consumer access to diverse offerings of products, services, and advice.

“Insurance and financial advisors have a long history of successfully working as independent contractors with insurance carriers and financial firms to serve the financial services needs of consumers,” said NAIFA CEO Kevin Mayeux. “Issues with contract workers the PRO Act is supposed to address do not exist in the insurance and financial services industry, which is already highly regulated. Reclassifying agents and advisors as employees would in many cases stifle their independence to provide clients with diverse options, complicate their tax filing status, and disrupt their business models and relationships with clients. Many agents and advisors have relationships with multiple insurance companies and financial institutions, which could make reclassifying them as ‘employees’ problematic. The current independent-contractor relationship ensures consumers have the greatest access to products, services, and advice.”

NAIFA members are professionals who generally operate their own small businesses. An ongoing survey of members indicates that they oppose attempts to reclassify them as employees. Early results indicate:

• Approximately 90 percent receive income reported on a 1099.
• 94 percent do not want to be treated as an employee for union organizing.
• 95 percent operating as an independent contractor want to remain so.

The top concerns of members should they be reclassified as employees include:

• Loss of business deductions.
• Loss of ability to set one’s own schedule.
• Loss of renewal income if current clients were reassigned.
• Nullification of existing agent contracts.
• Diminished product offerings due to inability to offer products outside of a primary carrier.

The PRO Act will now go to the Senate for consideration. NAIFA will continue working with lawmakers to protect the independent-contractor status of agents and advisors.

Additional Resources from the Advocacy in Action blog:

• Advocacy in Action Blog Post: Worker Classification Under Scrutiny
• NAIFA CEO Signs Letter Seeking Changes to the PRO Act

The National Association of Insurance and Financial Advisors is the preeminent membership association for the multigenerational community of financial professionals in the United States. NAIFA members subscribe to a strong Code of Ethics and represent a full spectrum of financial services practice specialties. They work with families and businesses to help Americans improve financial literacy and achieve financial security. NAIFA provides producers a national community for advocacy, education and networking along with awards, publications and leadership opportunities to allow NAIFA members to differentiate themselves in the marketplace. NAIFA has 53 state and territorial chapters and 35 large metropolitan local chapters. NAIFA members in every congressional district advocate on behalf of producers and consumers at the state, interstate and federal levels.

NAIFA’s Congressional Congress, May 25-26, will be a virtual event featuring targeted advocacy training with briefings on legislative issues that affect members’ businesses, best practices for conducting congressional meetings, and tips for developing impactful long-term relationships with legislators.

Featured presenters for the May 25 session will include Sen. Tim Scott (R-SC), a former insurance professional prior to his service as a federal lawmaker; Rep. Stephanie Murphy (D-FL), a member of the House Ways and Means Committee; American Council of Life Insurers President and CEO Susan Neely; NAIFA’s Government Relations team; and other influential industry representatives. More information on the schedule is on NAIFA’s website belong.naifa.org.

On May 26, attendees will participate in virtual meetings with their members of the Senate and congressional staff. They will discuss legislative issues important to their businesses and clients and tell their stories that show the important work they do providing Main Street USA consumers with opportunities to achieve financial security and prosperity.

“The Congressional Conference is one of NAIFA’s signature events and is crucial to our grassroots advocacy strategy,” said NAIFA CEO Kevin Mayeux, CAE. “The virtual event brings NAIFA members together as a critical mass to advocate on behalf of their businesses, clients, consumers, and the insurance and financial services industry. Virtual meetings, in fact, allow us to offer an even more inclusive event and promote equitable access to advocacy with more agents and advisors able to participate and have a meaningful impact.”

The 2021 Congressional Conference will mark the second year in a row that the event has been held in a virtual setting. Attendance grew last year as more agents and advisors were able to participate from their homes and offices. Unlike last year, this year’s event will feature small group meetings with lawmakers that have become a highlight of past Congressional Conferences.

“COVID-19 and restrictions in place at the U.S. Capitol require us to go 100 percent virtual this year, but NAIFA members will be meeting with U.S. Senators and will have the same influence as when they meet face-to-face,” Diane Boyle, NAIFA’s senior vice president for Government Relations, said. “We have even greater influence when we fully activate our grassroots network. It also helps more financial professionals get to know NAIFA and see first-hand the great advocacy work our association is doing to protect their businesses and clients.”

The Congressional Conference bolsters NAIFA’s prestige among lawmakers and industry partners and enhances the association’s standing as the leading voice for insurance and financial professionals. It is crucial for ensuring lawmakers thoroughly understand the important role NAIFA members play in:

• Providing products, services, and advice that improve the financial security of 90 million American families.
• Promoting financial literacy and self-sufficiency in diverse communities.
• Strengthening the U.S. economy and contributing to the financial health of communities in every congressional district.
• Representing the best interests of their clients and promoting the success of Main Street Americans and businesses.

“The personal stories insurance and financial professionals tell profoundly illustrate how public policies impact their clients,” Mayeux said. “These are stories lawmakers want and need to hear. No one can tell them better than NAIFA members, and the Congressional Conference is our best vehicle for reaching a large, attentive audience of policymakers.”

Registration for NAIFA’s 2021 Virtual Congressional Conference is open online: https://web.cvent.com/event/a3377dce-7326-4ee9-84b2-37ddd2a00335/summary.

The National Association of Insurance and Financial Advisors is the preeminent membership association for the multigenerational community of financial professionals in the United States. NAIFA members subscribe to a strong Code of Ethics and represent a full spectrum of financial services practice specialties. They work with families and businesses to help Americans improve financial literacy and achieve financial security. NAIFA provides producers a national community for advocacy, education and networking along with awards, publications and leadership opportunities to allow NAIFA members to differentiate themselves in the marketplace. NAIFA has 53 state and territorial chapters and 35 large metropolitan local chapters. NAIFA members in every congressional district advocate on behalf of producers and consumers at the state, interstate and federal levels.

Women in Insurance and Financial Services (WIFS) hosted its second annual National WIFS Day on Friday, March 12, as part of a year-long celebration of its 85th anniversary and the rollout of a new global strategy to achieve parity for women in the insurance and financial services fields.

The purpose of National WIFS Day is to raise awareness of the ongoing inequities still present for women in insurance and financial services, in keeping with WIFS’ mission of advancing career opportunities, providing professional development and representing women’s interests in a male-dominated industry.

WIFS is the largest women’s association empowering women in the finance and insurance professions to succeed.

In 2020 and 2021, WIFS has positioned itself as a global thought leader in the industry. With its groundbreaking initiative, Strike The Match, WIFS will work collaboratively with educational institutions, corporations, and industry leaders to provide women and men the tools necessary to achieve a more balanced, inclusive, and equitable culture, where women not only have a seat at the table but have their own table.

2020-2021 WIFS National Board President Carrie D. Sayre, creator of Strike the Match, explains the program:

“Strike the Match” is not just a catchphrase. It’s a call to action for every woman and man in insurance and financial services to ‘be the change they want so see,’ and to go the distance to effect real and longstanding change in the workplace.

“National WIFS Day is an opportunity to applaud the work that has been accomplished and look forward to the work still left to be done.”

Strike the Match presentations will be offered across the country throughout 2021 and will be shared widely with corporate partners and WIFS leaders as they continue their work to attract, develop and advance women in insurance and financial services. If you are interested in welcoming WIFS board members to your organization to present Strike the Match, please contact Mary Rogan, Director of Events, at office@wifsnational.org.

Women in Insurance and Financial Services (WIFS) was founded in 1936 and is an association of financial services professionals working together to attract, develop and advance women in an underrepresented profession. No other financial services organization provides programming designed for women, by women.

2020 was a year of chaotic change in America: The COVID-19 pandemic, its resulting recession, an adjustment to work-from-home life and more. After a year of relearning and reflection, Americans want to take advantage of the new year by making intentional changes to their personal finances. A recent study of more than 2,000 U.S. adults, conducted online by The Harris Poll on behalf of MDRT, found that 53 percent of Americans say their top New Year’s resolution was going to be related to their finances. As American society faces an undetermined future, financial advisors have a new opportunity to boost services for existing clients and prove their value to financially underserved consumers.

Household income impacts
Even taking government aid into account, more than a third (35 percent) of Americans say their household income decreased in 2020. More specifically, 37 percent of Americans who do not work with a financial advisor and 32 percent of Americans who do saw their household income decrease in 2020. On the other hand, 28 percent of Americans with financial advisors say their household income increased in 2020, compared to 15 percent of Americans without advisors. This may indicate that financial advisors made a real difference in protecting their clients’ income and ability to meet financial goals last year, even as the recession and unemployment took their toll on the country.

“Following a tumultuous year, consumers entered 2021 in a multitude of financial situations, but financial advisors may have helped shield their clients from the worst of the damage,” said MDRT President Ian Green, Dip PFS. “In the new year, advisors must not only continue to protect clients, but help them make desired financial changes to meet their needs and meet this moment in history.”

The events of 2020 seem set to reverberate for years to come, as 57 percent of Americans say the COVID-19 pandemic and current ongoing recession will have long-term, negative impacts on their ability to save for important life goals. Younger Americans have borne the brunt of these challenges more so than some of their older counterparts, with 62 percent of 18-to-34-year-olds and 67 percent of 35-to-44-year-olds predicting long term difficulties, compared to just 43 percent of those aged 65+.

The effects of this recession have fallen unevenly on different racial groups, hitting Hispanic Americans especially hard. Sixty-six percent of Hispanics report long-term negative financial impacts from the COVID 19 pandemic and ongoing recession, compared to 53 percent of white Americans. Hispanics (44 percent) are also more likely to have reported a drop in household income in 2020 compared to their white peers (32 percent).

Moving forward in 2021
Many Americans are ready to ask for financial assistance. Forty-four percent of Americans without financial advisors say the major events of 2020 in the U.S. and their financial impacts have made them realize the benefits of working with one. This includes the groups hit hardest, including 54 percent of 18-to-34-year-olds, 58 percent of 35-to-44-year-olds and 60 percent of Hispanic Americans.

“After the events of last year, American advisors have a great opportunity to both strengthen existing relationships and better engage with new and underserved markets,” said MDRT First Vice President Randy L. Scritchfield, CFP, LUTCF. “Staying attuned to societal, political and economic changes will always be a make-or-break skill in our industry, and this moment gives advisors the chance to separate themselves from the pack.”

Advisors will have plenty of work on their hands, as Americans have a diverse set of monetary goals and priorities. Both Americans with advisors (33 percent) and Americans without an advisor (30 percent) named identifying and preparing for long-term financial goals as their top priority in working with a financial advisor in 2021. For Americans with advisors, purchasing financial products, like annuities or insurance (30 percent), and diversifying their investment portfolios (30 percent) follow as the next-most-important priorities. For Americans without advisors, creating an emergency savings fund (28 percent) and paying off debt (26 percent) come in at second and third, respectively.

While total recovery from the ups and downs of 2020 will take time, Americans are not waiting to react with their wallets. Continued adaptability and the ability to move with societal trends will give financial advisors ample opportunity to help Americans meet their financial needs and more.

To learn more about these findings, visit the MDRT Media Room.

Survey methodology: This survey was conducted online within the United States by The Harris Poll on behalf of MDRT from November 19-23, 2020, among 2,034 U.S. adults ages 18 and older, among whom 1,382 are investors (have money in investments). This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Carrie Kaniecki, ckaniecki@gscommunications.com.

Founded in 1927, Million Dollar Round Table (MDRT), The Premier Association of Financial Professionals®, is a global, independent association of more than 65,000 of the world’s leading life insurance and financial services professionals from more than 500 companies in 70 nations and territories. MDRT members demonstrate exceptional professional knowledge, strict ethical conduct and outstanding client service. MDRT membership is recognized internationally as the standard of excellence in the life insurance and financial services business. For more information, please visit mdrt.org and follow them on Twitter @MDRtweet.

MDRT is committed to celebrating and serving its inclusive, diverse constituency of members in a culture where everyone is valued, respected, appreciated and treated fairly without bias or discrimination. As a global organization, MDRT values and embraces the differences among its members. MDRT will purposefully establish and promote policies, programs and procedures that affirm diversity, equity and inclusion for the benefit of all members, aspiring members, industry partners and the financial services profession.