A note from the desk of Shawn Davis, Head of Individual Sales US Life Insurance Companies at Genworth.
As we enter 2019, we are continuing our efforts in developing a market for the Income Assurance Immediate Need Annuity (INA) product. INA is a medically underwritten single premium immediate annuity issued by Genworth Life Insurance Company (Genworth Life.) Over the past 3 years, we have not been able to develop this market through the Brokerage General Agency (BGA) channel. Many efforts were made by our wholesaling team partnering with BGAs to drive sales. Unfortunately, this didn’t generate enough traction for us to continue with this model as part of our 2019 strategy.
In 2019, we are going to deploy a different distribution strategy that affects our BGA model. Beginning December 3, 2018, we will only offer INA as a producer direct opportunity, specifically meaning any producer wanting to offer INA to their clients will need to be contracted directly with Genworth Life. We are making this change to offer producers a higher commission rate of 5% to sell the product. We will notify all producers engaged in the marketing and selling of INA of this change. Any business submitted prior to November 30, 2018 under your BGA hierarchy will be attributed to you in that structure. After this date, the producer will need to have a direct relationship with Genworth Life for INA, and you will not receive compensation.
I realize this change in distribution strategy has an impact on our BGA partners. Please know the decision was not made lightly and is based in part on the feedback we have received that the current compensation structure is not properly aligned given the duration and complexity of the sales process for this product. We believe this is the right decision to make at this time and will help to accelerate the market opportunity for this product.
Thank you in advance for your understanding and support.