IMSA's Executive Director Responds To Bobo Column

Value of IMSA membership. Already, the value of IMSA membership is being recognized by insurers, agents and representatives of the regulatory community. Since inducting our first members in 1998, IMSA has achieved many milestones:

• Originally established by the American Council of Life Insurers to help companies in their efforts to maintain a high level of ethical market conduct, IMSA has recently declared its full financial and operational independence.
• We experienced a 98% renewal rate during our first membership renewal cycle in 2001, in which 85% of our members were eligible to renew.
• A growing number of agents endorse the ethical principles espoused by IMSA, recognizing that treating their customers honestly and fairly makes good business sense.
• IMSA has created greater company, agent and consumer awareness of the importance of conducting business according to the highest standards of honesty and fairness.
• IMSA is becoming an increasingly significant factor considered by regulators, rating agencies and consumers when they review a life insurance companys practices and products.
• The National Association of Insurance Commissioners, through its Insurance Marketplace Standards Working Group, is exploring additional ways best practices organizations like IMSA can serve the life insurance marketplace.

As the recently appointed executive director of IMSA, I have had the opportunity to visit with members, independent assessors, regulators and producers to discuss these milestones and IMSAs future plans. While these groups view IMSA from different perspectives, they generally confirm that compliance and compliance professionals have taken on a more prominent role at IMSA member companies directly as a result of attaining IMSA standards and that best practices implemented in order to achieve IMSA membership have raised the overall standard of practice within the life insurance industry.

During my discussions with state insurance commissioners and their market conduct examination staffs, an increased focus on compliance and more well-organized compliance procedures at IMSA member companies are particularly noted. These corporate improvements allow regulators to examine companies more efficiently thereby providing benefits to regulators, companies and consumers alike. By establishing an infrastructure to attain compliance with IMSA standards, some regulators have recently acknowledged that IMSA member companies are more likely to identify market conduct practices that have the potential to harm consumers. This recognition by regulators has been hard-earned as the attainment of IMSA membership status has required a considerable commitment by each IMSA member insurer.

It is clear that many of these improvements would not have taken place without IMSA providing a rigorous set of qualification requirements that is increasingly viewed as the standard of excellence within the life insurance industry. During a period of time in which a perceived crisis of confidence exists throughout corporate America, the answer to the question “Why IMSA?” should be increasingly clear. IMSA membership is the only credential an insurer can earn to assure customers that their company meets high ethical standards in the marketing, sales and service of life insurance, long-term care insurance and annuities.

Rather than “fade away” IMSA and its member companies who have demonstrated commitment to high ethical standards should light the way for the life insurance industry.

Brian K. Atchinson,

Executive Director,

Insurance Marketplace

Standards Association,

Chevy Chase, Md.

Reproduced from National Underwriter Life & Health/Financial Services Edition, June 24, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.