Symetra Life Insurance Co. of Bellevue, Wash., is expanding the sales and compliance training it offers banks and other sellers of its products.
For a decade it has provided such training, from TFS Training and Consulting of Seattle, to selected clients. Now it is available to all of them.
The expanded program, announced last week, is a response to demand from banks, said Patrick McCormick, the senior vice president of sales and distribution at the $20 billion-asset insurer.
Banks have asked for training and advice in light of increased regulatory scrutiny of variable annuity sales and other wealth management products, he said Thursday.
Roderick Halvorson, a senior vice president of business development at Symetra, said the training will also help "solidify our presence in the financial institutions channel" and help banks strengthen relationships with customers by offering and advising about more insurance products.
Mr. McCormick said TFS will help Symetra clients profile customers and determine whether certain products are suitable for them.
"Banks in general are very concerned about doing the right thing for their customers," he said. "There are a lot of wealth products and product providers out there, and the roadmap gets a little confusing at times."
In a recent investigation of broker-dealers who sell variable annuities, the Securities and Exchange Commission and the National Association of Securities Dealers found extensive evidence of unscrupulous practices.
In particular, regulators expressed concern that brokers were taking advantage of senior citizens who do not fully understand the complexities of annuity contracts.
Mr. McCormick said that in addition to providing compliance assistance, TFS will help bank branches set up referral programs for Symetra and others' products.
"As we look at more and more bank programs, we're finding that the services banks are really looking for go beyond just training on product features and benefits," he said.
TFS will give up its Seattle headquarters and move into Symetra's in a few months, but the insurer does not plan to buy the training firm, Mr. McCormick said.
The firm trains registered representatives, who can sell various kinds of financial products, and platform representatives, who typically focus on traditional bank products, such as savings accounts and loans. Its trainers are securities-registered and have at least of 10 years' experience in the financial industry; they are knowledgeable about such products as annuities, life insurance, mutual funds, and retirement plans.
Other insurers, including Nationwide Financial Services Inc. and Hartford Financial Services Group Inc., have also enhanced their bank compliance training in the past year. Last week Massachusetts Mutual Life Insurance Co. said it plans to introduce a variable annuity marketing kit for the bank channel within a few months.
Hartford offers presentations to bank management on variable annuities, covering topics including suitability and industry standards. The company also offers continuing education to sales representatives to help them navigate the complex features associated with variable annuities.
Nationwide meets with bank sales representatives to provide variable annuity sales training. The insurer also provides Web tools for the bank channel, including sales tracking programs.
