The logo for Finseca, the group formed from the merger of AALU and GAMA (Credit: Finseca)

The group formed from the combination of the Association for Advanced Life Underwriting (AALU) and GAMA International is getting its own name — Finseca — as policymakers in Washington are noticing that that the federal government has a $3 trillion deficit for the first 10 months of federal fiscal year 2020.

The leaders of Finseca say the group will be “the voice of the financial security profession.”

Resources

  • The Finseca website is available here.
  • An article about what AALU-GAMA is saying about the U.S. Department of Labor’s new fiduciary rule draft is available here.

“Finseca’s sole focus is to serve the leaders and financial security professionals working to protect the dreams and promote the prosperity of the American people,” the group said today, in a naming announcement.

The History

GAMA International, which was once known as the General Agents and Managers Association, was a Falls Church, Virginia-based provider of education and networking opportunities for field managers at life insurance companies and investment companies. GAMA generated about $5.9 million in revenue in 2016 and ended that year with $4 million in assets, according to the most recent Form 990, or nonprofit organization annual report, available on Candid.org.

AALU was a Washington-based group for life insurance and retirement planning professionals. It was especially well known for its efforts to shape the laws and regulations governing complicated life insurance and annuity arrangements, such as such as the estate planning arrangements for large estates, estate planning arrangements, and mechanisms for building annuities into estate planning arrangements. AALU had about $13 million in revenue that year and $7.3 million in assets.

The groups announced plans to combine forces in July.

Finseca’s chairman is Kelly Kidwell of Pacific Advisors, a Guardian Life Insurance Company of America agency.

Finseca’s Advocacy Plans

Finseca said it will continue the traditions of both of its founding organizations, with efforts to elevate, accelerate and advocate.

The group said it will elevate by setting higher standards for financial services professionals, accelerate by providing the education and insights members need to give clients better advice, and advocate by speaking up for “effective public policy that puts more people on the path to financial security.”

“Americans today are at a crossroads, as economic shocks of COVID-19 exacerbate financial and retirement anxieties,” Finseca said. “People who work with professionals are likely to have fewer debts, a safety-net fund, life insurance to protect them from hardship and lost earnings, and a strong path to retirement that includes a plan to create secure retirement income and a better life as they age.”

Today, however, “the federal and state legislative and regulatory environment often makes it harder to help Americans protect and build a better future and access planning advice and solutions using life insurance and annuities,” Finseca said. “Finseca will unify the profession and raise our collective voices to advocate for effective public policy.”

Finseca said its advocacy agenda will include the following:

  • The core tax treatment of life insurance.
  • Retirement policy.
  • Standards of conduct.
  • American families’ savings and liquidity crisis.

“We will educate policy makers about the profession and the value of personalized professional advice for helping Americans become more financially secure,” Finseca said.

Finseca is also launching “Financial Security for Me,” an effort to connect with Americans who need more help with their finances.

— Read Life Insurers Equal About 19% of Social Security: MetLife to Policymakerson ThinkAdvisor.

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