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Phillip Roy Wasserman suffered another setback last week when a federal judge sided with Florida and federal investigators in his civil lawsuit.

U.S. District Judge Tom Barber awarded summary judgment to Stephen Howland, the State of Florida Office of Financial Regulation, and the federal government. Howland is a former financial investigator for the OFR.

Wasserman, the self-styled “Annuity King” who is serving a 15-year prison sentence for fraud, alleged that state and federal investigators misled witnesses with biased questioning in a vendetta against him.

Federal agents discussed Wasserman’s tax liens and civil judgments during interviews with clients and potential witnesses. Agents asked leading questions, Wasserman alleged, such as, “Did you know that Wasserman paid himself a salary of more than $500,000 per year?”

The questioning was appropriate considering the circumstances of the investigations that overlapped fraud and tax charges, Barber said.

Fit and healthy

Meanwhile, Wasserman, 68, spends his days at Coleman Low Federal Correctional Institution in Sumterville, Fla., according to the Bureau of Prisons. His release date is June 5, 2036.

Wasserman recently reached out to InsuranceNewsNet and established communication via CorrLinks, a secure email system used by federal prisons to allow inmates to exchange monitored electronic messages with people outside prison.

A 13-minute phone call followed in which Wasserman discussed his case and life behind bars.

Wasserman gets up at 5 a.m. every day, gets plenty of exercise and has dropped about 60 pounds, he said.

“The food is surprisingly good,” he said. “They have a good library with a law center where we can do legal research on computers. No internet, of course, but access to Lexis Nexus. I work on my case about 50 hours a week.”

In addition to exercising and working on his case, Wasserman said he has written two mystery novels and enjoys weekend visits from his family. Inmates are allowed Saturday and Sunday visits twice a month, “usually two hours,” he said.

The lone negative at Coleman is a noticeable lack of funding, Wasserman explained. Overcrowding is a persistent problem and some inmates struggle with medical needs.

“It is not Mar-a-Lago,” he quipped. A one-time member of President Donald Trump’s exclusive Palm Beach club, Wasserman nonetheless said he has not reached out to the president’s orbit in search of a pardon.

“I have been focused on establishing my innocence,” he said.

New appeal filed

Wasserman was convicted on May 15, 2023, on nine felony counts. The three most serious – wire fraud, mail fraud and conspiracy to commit wire and mail fraud – all carried lengthy prison terms. Wasserman allegedly ran a fraud totaling $6.3 million, which the government seeks to recover.

The government said Wasserman, with Kenneth Rossman, lied and concealed information to convince elderly victim-investors to put their money into Wasserman’s life insurance venture called, “FastLife.”

Despite facing a sentencing range of 30 to 37 months, Rossman was sentenced to probation. He pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of “aiding and assisting the preparation and filing of fraud and false tax returns” in a plea deal with the federal government.

Rossman testified against Wasserman as part of the deal.

The government requested a stiff sentence for Wasserman, claiming that he urged one witness to lie to investigators, attempted to dissuade several victim-investors from cooperating with law enforcement, and requested that one victim-investor make a baseless complaint against an investigator.

In addition, Wasserman falsely and fraudulently represented that he had an audit from a highly regarded financial services firm that would show neither he nor FastLife had committed any wrongdoing, the government said.

On Wednesday, Wasserman said he is filing a new 33-page Rule 33 request for a retrial, “based on newly discovered evidence the prosecution hid.”

Wasserman remains unrepentant about what the government claims are elderly victims who lost crucial retirement savings.

“I committed zero crimes.”

–Phillip Roy Wasserman

“Am I unhappy that my friends who were investors suffered damage as collateral? Five thousand percent,” Wasserman said. “That’s why, when I win my appeal, and I’m not obligated, I’m still going to use the proceeds from the civil suit to reimburse them. That’s going to happen. But if you ask me, ‘Do I have remorse for committing a crime?’ I committed zero crimes.”

Case details questioned

Frank E. Worrell spent 22 years investigating financial fraud with the Federal Bureau of Investigation. He is also a certified public accountant licensed in South Carolina and a private investigator with Quick Group in Mt. Pleasant, S.C. Worrell was part of Wasserman’s defense team and said the evidence does not rise to the level of a crime.

Wasserman was trying to build a life insurance model similar to SelectQuote, for example, and his mistake was not being properly capitalized, Worrell explained. However, investors were aware that they were investing in an “unsecured” investment, he added.

The millions collected by Wasserman were put into advertising and payroll, Worrell noted. FastLife was a typical new business venture that lost money in its early years, he insisted, and the government did not allow the business to mature into something that might have worked.

The government said Wasserman spent “a significant amount” of the victim-investors’ money to finance a lavish lifestyle that included a luxury personal residence, a beach house on Casey Key, professional hockey season and playoff tickets, concerts and other shows, vehicles, jet skis, jewelry, including a diamond ring, personal celebrity entertainment, gambling, retail shopping, home improvements, personal insurance, and a host of other expenses.

Wasserman and Worrell say many of those expenditures can be justified. For example, the house was used as a training site for employees, Worrell said.

“It’s not to say somebody who lent him money doesn’t have some civil recourse or a case. That happens all the time,” Worrell said. “But we’re talking about a man’s life. He’s trying to do a venture, and he’s now sitting in prison. For the life of me, I just don’t see it. It’s a heavy sentence for fraud. I cannot believe it.”

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Members of the “Sandwich Generation” – Americans who have both young children and aging parents –  are struggling to stay on track toward their retirement and long-term financial goals, according to the 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement.

One in four Americans (25%) has a child who is under 18 and a living parent, and is part of the sandwich generation, with the dual responsibility of caring for their own children as well as their aging parents, the survey explained. Nearly half of millennials (46%) and 18% of Gen Xers are part of this sandwich generation.

Most Americans in the sandwich generation are providing their parents with either physical, financial or emotional support. “Caring for both your young children and your aging parents can be overwhelming for both your time and your finances,” said Kelly LaVigne, VP of consumer insights, Allianz Life. “While you may feel it is your responsibility to care for everyone, it’s important to keep your own best interest in mind for your long-term security. Forgoing your own retirement savings now can have costly consequences later on.”

Carrying out dual caregiving responsibilities can have costly consequences later in life.  In fact, this is one of the more concerning responses from the survey. As LaVigne, explained, according to 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement, more than half (59%) of those in the sandwich generation responded that they have reduced or stopped contributing to their retirement account.

“While I can sympathize that they may need every penny for their current situation, this can be short-sighted,” LaVigne added.  “Losing the company match (if they have it) is losing free money that could make the critical difference in their retirement future.  Also, the truism that says: “it’s not timing the market, it’s time IN the market” is so important a concept for retirement planning.  They may be surprised that the amount they stop contributing to their pre-tax retirement plan may not, because of the tax advantage, add that much to their net take home pay.”

Helping clients balance their responsibilities

So, what are some of the steps a financial professional can take to help his clients create a strategy designed to balance their current responsibilities with their financial future?

“The reason why we encourage savers to seek the advice of a financial professional is that they have a myriad of resources to help plan out a financial plan AND it is their full-time job, “LaVigne said in response to this important question. “They can look at different risk levels, find programs that can help with the care of children and elderly parents, and also tap into their network of business connections that the average individual might not have available. They can help draft a plan that will possibly avoid some of the consequences of having extra financial burdens and also save their clients’ time by doing the research for them.”

Risk-management strategies

And what additional risk-management strategies can a financial professional use to help his clients develop a financial plan that ensures that their money lasts as long as they do?  Since everyone’s retirement objectives are different, there is no one-size-fits-all strategy, LaVigne pointed out.  “But with the advent of Buffered ETFs, loans from permanent life insurance, and fixed indexed annuities (FIAs) and Registered Indexed Linked Annuities (RILA), financial advisors have many tools at their disposal that they can utilize in a diversified plan that can help with growth, protections and appropriate risk.”

Allianz Center for the Future of Retirement, t, part of Allianz Life Insurance Company of North America (Allianz Life),  conducted an online survey, the 2025 Annual Retirement Study, in January/February 2025, with a nationally representative sample of 1,000 respondents age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k+.

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Total new annualized premium increased 13% to $4.5 billion in the second quarter, according to LIMRA’s retail life insurance sales survey results, which represent 80% of the U.S. market.

Northwestern Mutual led the way with $572 million in new annualized premium in the quarter, while Pacific Life was second. Prudential Financial attracted the most total premium in Q2 with nearly $1.1 billion.

The number of policies sold rose 7% in the second quarter, which is the highest growth rate recorded in LIMRA’s quarterly survey since 1983.

In the first six months of 2025, new annualized premium surpassed $8.4 billion, up 11% over the prior year. Policy count grew 4% year to date (YTD).

“Indexed universal life sales remain a driving force in the U.S. life insurance market. IUL sales’ success over the past 10 years is due to more simplified or competitive solutions, expanded distribution, and greater demand from consumers, who seek investment protection in a volatile equity market environment,” noted Sean Grindall, senior vice president and head of life and annuities, LIMRA and LOMA. “Although we had significant policy sales growth in the second quarter, our research shows there are 100 million Americans who live with a life insurance coverage gap.”

The MIB Life Index found that life insurance application activity continued to grow in August 2025, with year-over-year activity up 6.1%. On a year-to-date basis, activity through August 2025 was up 2.8%.

LIMRA provided a breakdown of sales by product category:

Indexed universal life

Indexed universal life products set quarterly and mid-year sales records. In the second quarter, IUL new premium leapt 31% to $1.2 billion.

Each of the top ten IUL writers reported gains, citing continued demand in the high-face market, the introduction of new or enhanced products, implementation of new tools to help simplify and speed up sales processes, and the expansion or strengthening of distributor relationships. Policy count rose 4% in the second quarter.

For the year, IUL new premium totaled a record high of $2.1 billion, 21% higher than the prior year’s results. There were 5% more IUL policies sold in the first six months of 2025. IUL new premium represented 25% of the total U.S. life insurance market in the first six months of 2025.

Variable universal life

Variable universal life new premium climbed 17% to $611 million in the second quarter. The number of policies sold increased 2% in the quarter. Half of the VUL writers reported positive growth, including seven of the top 10 carriers.

VUL new premium totaled $1.2 billion in the first months of 2025, up 27% year over year, and policy count improved 4%. In the first six months of 2025, VUL held 14% of the total U.S. individual life insurance market.

Whole life

For the third consecutive quarter, whole life sales posted positive growth. WL new premium totaled $1.6 billion in the second quarter, 6% above the prior year’s results. The number of WL policies sold increased by 14% in the quarter, representing the strongest policy sales growth in 25 years.

“Final expense and other smaller-face whole life policies continue to drive overall WL sales growth in the first half of the year,” said Karen Terry, corporate vice president and head of LIMRA Insurance Research. “With economic uncertainty at the forefront of many consumers’ minds, we expect the WL sales to remain strong through 2025.”

For the year, WL new premium rose 4% to $3.1 billion, compared with the prior year’s results. Policy count grew 8% year over year. WL new premium represented 45% of the total life insurance market in the first half of 2025, which is the product line’s highest market share since 1995.

Term life insurance

Term life new premium totaled $792 million, 3% above the second quarter 2024. Policy count increased 1% in the quarter. Several carriers attribute their growth to online distributors and expanded distribution.

In the first half of 2025, new premiums exceeded $1.5 billion, up 1% year-over-year. The number of policies sold remained level with the same period in 2024. Term life new premium represented 18% of total sales for the year.

Fixed universal life

Fixed universal life sales fell for the quarter and the year. New fixed UL premium dropped 8% in the second quarter to $245 million. Policy count fell 7% from the second quarter of 2024 results.

In the first half of the year, fixed UL new premium was $483 million, 5% lower than the prior year’s results and policy count contracted 8%. Fixed UL new premium held 6% of the U.S. life insurance market in the first six months of 2025.

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In order to get more people to buy life insurance, the industry must overcome a lack of consumer education about the product as well as the myth or perception that coverage is too expensive.

The 2025 Insurance Barometer Study, conducted by LIMRA and Life Happens, focuses on the opportunities to educate consumers on the benefits and strengths of life insurance. This year’s study found that a minority of consumers believe they are very knowledgeable or extremely knowledgeable about life insurance, with the percentage varying by age group.

Overall, 41% of Americans said they are only somewhat or not at all knowledgeable about life insurance.

Steve Wood, LIMRA research director, consumer markets, told InsuranceNewsNet the theme of the 2025 barometer study centered on how well consumers understand life insurance and how the industry can educate them about the various products available. That theme had two parts: How to understand the consumer mindset about life insurance and whether consumers understand the value of the product.

Two ways to look at consumer understanding

“We looked at it in a couple of different ways,” he said. “One was looking at younger consumers; in particular, those who would most likely be in the market for life insurance now – 25 to 35 years old – and asking them how much they think an average term policy would cost. We found they overestimated the cost eight to 12 times over what it would cost them.”

Digging deeper into the study, Wood said, researchers asked consumers whether they understood life insurance and what the product can do.

“What we found is that fewer young adults understand what life insurance is,” he said. “Some of the reasons are purely hypotheses on my part, but we know there’s a lot of competition not only for wallet share but for attention. We looked at where people are getting their information. And no surprise, more and more younger adults are getting financial information from social media and other platforms, whether it’s TikTok, Instagram or podcasts.”

Wood cautioned about consumers obtaining financial and insurance information from influencers on social media.

“These are unlicensed individuals. They’re charismatic, they’re attractive to listen to but they have no oversight. They don’t have branding and legal and compliance. It’s also really hard for the industry to get their message out in a few seconds or whatever brief time they have to capture the attention of someone who might be interested in life insurance.”

The industry is responsible for informing consumers about life insurance

The industry must do a better job of informing consumers what life insurance can do for them and what sets it apart from financial tools such as cryptocurrency, Roth IRAs and stocks, he said. One way is for the industry to counter the misinformation on social media by conducting its own information campaigns on various platforms. Simplicity and an emphasis on storytelling also can go a long way in getting consumers to understand the value of life products.

“We know people say they want life insurance but now the question is, how can we get them into that shopping pipelines to better understand it, what it can do for them and their families and why it’s a better value when they buy it at a time when they’re young and healthy.”

The way to increase the number of life insurance policies in force is to make consumers understand the product and how much coverage actually costs, Wood said. Licensed agents are the key to educating the public, he said.

“We still need financial professionals to help people purchase life insurance,” he said. “People still recognize the need for human assistance, the human touch that builds trust.”

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Increases in total Medicare spending threaten the program’s sustainability while increases in Medicare enrollment contribute to those spending increases.

That was among the takeaways from a recent webinar on the future of Medicare presented by the American Academy of Actuaries.

Increased spending on Medicare Part B and on Part D prescription drug coverage will drive Medicare premiums higher over the next decade, said Derek Skoog, chairman of the academy’s Medicare Committee. Part B monthly premiums are projected to rise from $147 in 2024 to $347 by 2034, with Part D monthly premiums projected to increase from $34 to $51.

“This increase could be significant, particularly as most beneficiaries are on a fixed income,” he said. The increase in Part B spending is mainly attributed to more medical services being provided on an outpatient basis.

The 2025 Medicare Trustees Report projected that Medicare expenditures will begin outpacing income after 2027, he said. With 44% of Medicare revenue coming from general tax revenues in 2024, the growing costs of Part B and Part D also increase pressure on the federal budget. General revenue funding for Medicare as a share of total federal revenue is expected to climb from 11% in 2025 to more than 17% in 2055. Total Medicare spending currently makes up about 4% of gross domestic product but that percentage is expected to rise to nearly 9% by 2099.

Increasing the payroll tax as well as increasing Part B and Part D premiums could fix the gap between spending and revenue, he said, but “that will present challenges for retirees and beneficiaries.”

Concerns about prior authorization in Medicare

Prior authorization in Medicare has received public pushback recently and Washington is taking notice, said Carrie Graham, research professor and director of the Medicare Policy Initiative at Georgetown Center on Health Insurance Reform. Federal regulation and proposed legislation are aimed at reforming prior authorization.

The most recent regulation from the Centers for Medicare and Medicaid Services is a final rule to take effect in 2026 that would ensure health care providers receive notice of the insurer’s coverage determination. The rule also would ensure that Medicare Advantage appeals rules apply to prior authorization denials, regardless of whether the decision was made before, during or after the patient received services.

Prior authorization reform has bipartisan support in Congress, Graham said, with two bills recently introduced in the House of Representatives.

The first, H.R. 3514, Improving Seniors’ Timely Access to Care Act, would require Medicare Advantage organizations to establish electronic prior authorization programs. It would establish certain protections for Medicare Advantage enrollees, such as prior authorization consultation requirements. The bill would exclude Part D drugs from prior authorization requirements.

The second bill, H.R. 2433, Reducing Medically Unnecessary Delays in Care Act, would establish board-certified physicians as final decisionmakers for prior authorization requests within their specialty. It also would require Medicare, Medicare Advantage and Part D plans comply with requirements that prior authorization decisions must be based on medical necessity and written clinical criteria. The bill also would remove “not meeting evidence-based standards” as a valid reason for denial when independently developed evidence-based standards do not exist.

The health insurance industry has pledged to voluntarily reform prior authorization, with 50 carriers who are members of AHIP signing the organization’s voluntary pledge that outlines a six-point road map to modernize prior authorization. However, Graham said, questions remain about the depth of the commitments, the enforceability of the pledge and the impact on patients with complex or high-stakes care needs.

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A Florida bar brawl that left a woman fatally shot has become a multimillion-dollar liability dispute with potential ripple effects nationwide on how carriers handle claims when catastrophic losses exceed policy limits.

At the center is Kinsale Insurance Co. vs. Pride of St. Lucie Lodge 1189, a case involving a deadly 2015 fight at a Fort Pierce fraternal lodge that escalated into the parking lot, where patron Tanya Oliver was shot in the head. She later died from her injuries. A jury found the lodge liable for negligent security and awarded more than $3.3 million, more than 60 times Kinsale’s $50,000 assault-and-battery sub-limit.

The legal battle now shifts to whether Kinsale acted in “bad faith” by not tendering its policy limits before the victim’s estate filed suit. The Eleventh Circuit Court of Appeals recently ruled that a jury should decide that question, reversing a lower court’s summary judgment in favor of Kinsale.

Florida’s Powell Doctrine at issue

At issue is Florida’s so-called Powell Doctrine, a 35-year-old precedent requiring insurers to start settlement negotiations when liability is clear and damages are likely to exceed policy limits. As Stephen F. Rosenthal, the lodge’s appellate attorney, explained in an interview, the insurer argued that “clear” should mean liability as plain as a drunk driver running a red light. The court disagreed, siding with a broader interpretation.

“Clear means obvious,” Rosenthal said. “And obvious means a thing is easily discovered, seen, or understood. The court rejected the industry’s attempt to limit it to inarguable, black-and-white cases.”

Exposure to bad-faith claims increases

That subtle shift could have significant consequences. If courts apply “obvious” instead of “inarguable” as the standard, it alters the risk allocation between the insurer and the insured. The more comprehensive “obvious” standard means that insurers are more likely to bear unforeseen losses in scenarios where liability and damages become clear after an incident, even if a claimant has not made a demand. This shift increases the exposure to bad-faith claims for insurers when serious injuries occur alongside low policy limits. This increased exposure to bad-faith claims raises industry alarm because it moves the financial burden of unexpected situations from policyholders to insurance providers, potentially increasing the number of situations where insurers might face large payouts.

Complicating matters further, Florida lawmakers in 2023 amended the state’s bad faith statute to create a 90-day “safe harbor” period. Insurers that tender limits within 90 days of receiving notice and supporting evidence of a claim are shielded from bad faith liability.

This legislative change introduces a practical timeline that insurers must closely adhere to. Day 1 marks the moment an insurer receives notice and the supporting evidence of a claim. By Day 90, the deadline arrives for insurers to tender their policy limits to protect against bad faith liability. This timeline conflict highlights the tension between the statutory”’safe harbor” and the broader interpretation of clear liability embraced by the appellate court.

“The case clarifies that the industry’s reliance on a narrow definition won’t fly anymore,” Rosenthal said. “Simultaneously, the legislature tightened the window to give insurers more breathing room. Those two forces are colliding.”

N.J., Oklahoma courts cite similar principles

Florida is not alone in recognizing a duty to settle absent a demand. New Jersey and Oklahoma courts have cited similar principles, and leading insurance treatises reference the same standard. That opens the door for the St. Lucie decision to influence courts in other jurisdictions wrestling with bad faith law.

Rosenthal suggested that carriers nationwide may need to reassess claims-handling protocols in cases where damages clearly exceed coverage.

“This ruling requires a careful assessment early on,” he said. “If there’s a likely possibility of an excess judgment, insurers had better take affirmative action to initiate settlement discussions.”

For insurers, the concern is that a “likely possibility” test injects uncertainty into what had been argued as a standard, or “bright line,” duty. Defense lawyers warn it will create more jury questions and fewer opportunities for early dismissal of bad-faith suits.

Industry experts note that negligent-security cases in Florida often result in significant jury verdicts, and failure to act quickly can be devastating. As one claims handler testified during the litigation, “very seldom will you get a defense verdict” in such cases.

Kinsale waited eight months after learning of Oliver’s shooting before tendering its $50,000 sub-limit, by which time the estate had already filed suit. The appellate court stated that a delay could lead a jury to conclude that the company acted in bad faith.

Financial exposure for carriers

The financial exposure for carriers is stark: the difference between a $50,000 tender and a $3.3 million judgment against their insureds. Florida courts have said such exposure is “a ticking financial time bomb” for insurers and policyholders.

The case now returns to the federal trial court for a jury to decide whether Kinsale’s handling amounted to bad faith. Meanwhile, insurers nationwide may be recalibrating. Some may adopt more proactive claims investigation; others may seek legislative fixes in their states to mirror Florida’s 90-day safe harbor.

The ruling underscores the value of bad faith protections for policyholders. For insurers, it is a cautionary tale of how quickly a failure to act can mushroom into catastrophic exposure.

“This is a new circumstance,” Rosenthal said. “The statute gives companies more protection. But the case law is now more liberal. Insurers will have to navigate both.”

The outcome of Kinsale v. St. Lucie will not just decide the fate of one fraternal lodge in Florida. It may reset the liability standards by which insurers nationwide are judged — and redefine what it means to act in good faith.

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Agent associations are speaking out against a new federal policy that they say is hindering agents from enrolling people in coverage on the federal health insurance marketplace.

On Aug. 29, the Centers for Medicare and Medicaid Services implemented a policy requiring agents and brokers to reconnect their online federally-facilitated marketplace account credentials after just 30 minutes of inactivity.

Agent groups say that as a result of this policy, their members are experiencing a number of problems in enrolling people in coverage online.

The National Association of Benefit and Insurance Professionals, in a letter to CMS, said its members have a number of problems, including:

• Applications are timing out mid-enrollment, forcing brokers to restart from the beginning and, in some cases, causing lost enrollments.
• Brokers are required to re-enter CMS Enterprise Portal credentials multiple times per day, creating excessive friction. This challenge will be most disruptive during peak open enrollment traffic.
• Brokers report that clients with longer consultations cannot complete an application within the 30-minute window, which will be especially problematic during open enrollment when consumers often need additional explanations and plan comparisons.
• HealthSherpa and other enhanced direct enrollment partners report that agents are being incorrectly marked as inactive by CMS, despite actively working within their platforms. This is because many application programming interface calls, such as those for quoting and system interactions related to agency management, are not counted as activity. Only actions such as fetching consumer accounts or applications are logged, triggering unnecessary reconnection prompts.

NABIP said this added friction diminishes broker productivity and threatens consumer access to timely enrollment. “In the words of one of our members: ‘Every extra friction point = lowering productivity = slowing down enrollments. Essentially, this is how we kill ACA without passing any laws.’

‘It’s one more thing’ to hinder brokers

Health Agents for America also is speaking out to CMS against the new policy, with president and CEO Ronnell Nolan telling InsuranceNewsNet it puts another burden on agents and brokers.

“Agents are already struggling because it times you out of the system,” she said. “You can be in the middle of an application that takes more than 30 minutes, it’s going to time you out, you’re going to have to sign back in.

“It seems like every other day there’s a new rule put in front of us that’s going to hinder our work and possibly put many agents out of business. This is one more thing.”

Could harm consumers

National Association of Insurance and Financial Advisors president Doug Massey, in a letter to CMS, said the new policy “could unintentionally harm consumer access to health insurance coverage and impede the ability of licensed insurance professionals to effectively serve their clients.”

NAIFA strongly supports efforts to implement effective cybersecurity safeguards in the exchange marketplace, Massey said. However, the recent changes have created several unintended barriers impacting consumers and the agents that serve them.

Massey noted:

• Complex applications require more time: Gathering documentation (tax returns, pay stubs, immigration documents) and completing family applications often takes longer than 30 minutes.
• Consultation needs: Licensed agents provide essential plan comparison, subsidy calculations, and education that cannot and should not be rushed.
• Vulnerable populations could suffer most: Low-income families, non-English speakers, elderly consumers, and individuals with disabilities may require additional time and support, making them particularly vulnerable to interruptions during the application process.

NAIFA urged CMS to:

• Extend the inactivity window to at least one hour to better reflect the complexity of the application process.
• Implement flexible timeout structures based on activity type.
• Focus security measures on protecting consumer data without creating broad enrollment barriers.
• Engage industry stakeholders in developing solutions that maintain both security and accessibility.

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American International Group (AIG), after surviving scandal and near failure, as well as shaking off a government takeover, is moving into what its top executive described as a “new chapter” — one marked by stronger financial performance, disciplined underwriting, and an aggressive push into generative artificial intelligence.

Speaking on a recent presentation with analysts and investors, AIG Chairman and CEO Peter Zaffino highlighted how the insurer’s restructuring efforts are paying off, while positioning the company to lead the industry in technological adoption.

Strongest performance in years

The second quarter delivered one of AIG’s strongest performances in years. Adjusted after-tax income per share rose more than 50% year-over-year, fueled by a 46% jump in underwriting income. The company’s core operating return on equity climbed to nearly 12%, while its calendar-year combined ratio improved to 89.3%.

“Our core operating ROE increased to 11.7% in the quarter, and our calendar year combined ratio was 89.3%, so we thought that was an outstanding result for the second quarter,” Zaffino said.

Zaffino noted that these results came despite an active catastrophe environment, including wildfires earlier in the year. AIG also returned $4.5 billion in capital to shareholders, retired $130 million in debt, and achieved long-awaited ratings upgrades from both S&P and Moody’s — the latter for the first time in decades.

“This is the first upgrade that AIG received from Moody’s since the 1990s,” he said. “It was kind of the last stakeholder that had not voted for the change and the improvement we made. It was a good moment for the company.”

AIG focuses on the future

The 2008 fiscal crisis and government bailout – in which the U.S. offered a $180 million lifeboat to the company and technically assumed control – are clearly and cleanly in the rear-view mirror for Zaffino and AIG. Four years later, in 2012, the Treasury Department sold the last of its AIG stock, netting a total gain of more than $22 billion from the sale of AIG common stock and $0.9 billion from the sale of AIG preferred stock. In 2017, the U.S. Financial Stability Oversight Council removed AIG from its list of “too-big-to-fail” institutions. Now, the company is solely focused on the future.

If there was one theme that dominated Zaffino’s recent discussion, it was AIG’s embrace of artificial intelligence. He described AI as a transformative force for underwriting, claims, and customer engagement.

“We want to embed [Gen AI] into our core business and end-to-end processes supporting underwriting and claims,” he said. “The early results have been very promising.”

Unlike many competitors that are still piloting projects, AIG has already rolled out AI tools in live business lines, including its Lexington subsidiary. Early results show efficiency gains in underwriting workflow, faster submission handling, and improved prioritization of risks.

The company sees the technology not as a replacement for underwriters, but as an enhancer — arming them with better data, reducing cycle times, and improving bind ratios.

“In three years, those who have invested will be far ahead of those who haven’t,” Zaffino said, warning that scale and digital sophistication will increasingly determine competitive advantage.

Property markets still challenging

Beyond AI, AIG is navigating complex insurance cycles. Property markets are still challenging, while casualty and financial lines are stabilizing. The company is leaning on reinsurance to smooth volatility, preferring “predictability over being at the whim of hurricanes or wildfires,” Zaffino explained.

“If you’re running a global business at a low 80s combined ratio with what would be considered a lot of reinsurance, I like that strategy,” he said. “I like the predictability of volatility containment, and I don’t like to be at the whim of what happens with the weather or major hurricanes or wildfires.”

At the same time, AIG is eyeing growth opportunities in casualty, specialty, and select international markets. The insurer stays open to strategic acquisitions, particularly in accident and health, but Zaffino stressed that any deal must be “strategic, ROE-accretive, and culturally aligned.”

Balancing training pipeline, experienced hires

The discussion also underscored how AIG is building for the future through people as well as technology. The company has been selective in hiring, focusing on data science and digital expertise while keeping a strong underwriting culture. Attrition is still low, and the company continues to supplement its training pipeline with experienced hires from across financial services.

“We have a tremendous training program,” he said “Getting out of university into our analyst program and then working through the company has been tremendous. We supplement what we bring in from the outside with talent that is developed within AIG.”

Even in smaller-commercial segments, AIG is using technology to offer faster, more efficient coverage through platforms like Western World, where policies can be bound in minutes. The goal, Zaffino said, is to marry speed with risk intelligence — “not just paying claims but helping clients manage resilience.”

With improved ratings, a leaner balance sheet, and early AI successes, AIG is positioning itself as both a disciplined underwriter and a digital leader. The challenge will be sustaining profitability amid shifting cycles while scaling its technology across the enterprise.

Still, Zaffino sounded confident: “Momentum is on our side. We’re executing incredibly well, and the opportunities in front of us are substantial.”

Year to date AIG stock is up more than 12%, and nearly 175% from its five-year low, to $82 per share.

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A renowned flutist for the Indianapolis Symphony Orchestra lost another appeal Tuesday for disability benefits covering time she spent recovering from COVID-19 symptoms.

Karen Moratz filed a claim in December 2020 for long-term disability benefits from Reliance Standard Life Insurance Co. On her application, Moratz indicated that she last worked in March 2020. Because she was not employed at the time of her claim, Reliance denied the benefits.

The U.S. Court of Appeals for the Seventh Circuit agreed.

Moratz appealed the denial and amended her claim to show that she was rehired in September 2021, but that her continued illness made it impossible to practice or perform. Reliance affirmed its denial, “determining that the information about her return to work constituted a fundamentally different request for benefits,” court documents say.

Robert E. Saint, Moratz’s attorney, did not respond to a request for comment. A Reliance spokesman said the insurer does not comment on litigation.

“While an employee benefit plan must consider additional or corrected information on appeal, it need not consider completely inconsistent information,” Judge Joshua P. Kolar wrote. “Moratz’s new information changed the nature of her claim and meant that she needed to submit a new application for benefits.”

‘World-class musician’

Moratz, then 27, joined the Indianapolis Symphony Orchestra in 1989, according to her biography on the ISO website. She is the associate professor of flute and artist-in-residence at Butler University’s Jordan College of the Arts.

Among her numerous accomplishments, Moratz authored “Flute for Dummies” in 2009. Now in its second printing, the book has been translated into Portuguese and Persian and was called “a must have for anyone who owns a flute” by Sir James Galway.

The ISO placed its musicians, including Moratz, on furlough in mid-March 2020, court documents say. In December 2020, Moratz’s husband tested positive for COVID-19 and Moratz “began to experience a cough, chills, vertigo, ear pain, fatigue, and brain fog,” court documents state.

The symphony eventually recalled its musicians in September 2021, court documents say, but Moratz was unable to rejoin them due to lingering tinnitus, a ringing in the ears. She was placed on sick leave on Sept. 15, 2021.

In February 2022, Moratz applied for long-term disability from Reliance under a policy purchased by the ISO and provided to Moratz as part of her employment benefits.

On her claim application, Moratz listed her last day worked before her disability as March 13, 2020 and she had not returned to work since then. Moratz gave Dec. 11, 2020 as the first date she could not work on a full-time basis, court documents state. In the portion of the application the employer had to complete, the ISO gave Moratz’s last day of work as March 18, 2020, although it noted that she had been “furloughed due to pandemic.”

Recent studies show an alarming rise in long-term disability claims in the years following the pandemic.

Quick disability denial

Reliance denied Moratz’s disability claim within a week, court documents state. Specifically, the insurer noted the requirement that eligible beneficiaries be “active, full-time employee[s].”

Moratz was not an “active, full-time employee” when her disability commenced in December 2020, so she was ineligible for coverage. While Reliance extended long-term disability coverage for 90 days due to the COVID-19 pandemic, that extension ended in June 2020, so the December 2020 date fell outside of the term.

About six months later, Moratz appealed the denial with detailed medical records, a lengthy letter and declarations from her colleagues. Moratz noted that she went on sick leave on Sept. 15, 2021. Her sick leave expired in March 2022, so she attempted to return to work but was unable to do so and had to take additional time off, according to court documents.

Moratz argued that she was eligible for coverage as of Sept. 1, 2021.

Reliance again denied the claim and sent Moratz’s information packet to an independent physician for review, who “opined that the medical information provided did not support finding that Moratz was unable to work from March 2020 to January 2023,” Kolar noted.

Moratz then sued, claiming violations of the Employee Retirement Income Security Act of 1974. The district court awarded summary judgment to Reliance. 

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Total U.S. annuity sales increased 8% year over year to a record high $119.5 billion in the second quarter, according to LIMRA’s U.S. Individual Annuity Sales Survey, which represents 92% of the total U.S. annuity market. This tops the record set in the first half of 2024.

In the first half of 2025, annuity sales were $226.1 billion, up 4% from the prior year’s results. This exceeds the sales record set in the first six months of 2024.

“Over the last three years, annuities have repeatedly set new sales records, which continued this quarter. While favorable economic conditions have bolstered sales, there also have been systemic market changes that have expanded the market,” said Bryan Hodgens, senior vice president and head of LIMRA research. “Product innovation, expanded capitalization and growing awareness by both investors and advisors of the need to build in guaranteed income into retirement planning have lifted the market. Based on the sales trajectory, LIMRA is expecting sales to surpass $400 billion in 2025.”

New York Life led in total annuity sales in the second quarter with $18.2 billion in sales. Equitable led the list of top variable annuity carriers with $11.1 billion in sales while Athene was the top seller of fixed annuities at $16.1 billion.

Fixed-rate deferred

Total fixed-rate deferred annuity (FRD) sales were $45.2 billion in the second quarter, 11% higher than second quarter 2024 sales. This is the second-highest quarterly sales recorded for FRD products. Year-to-date (YTD), FRD annuity sales totaled $84.9 billion, up 1% year over year.

“Second quarter FRD sales were strong, in part due to policies coming out of contract as the market anticipates interest rate cuts,” said Keith Golembiewski, assistant vice president and director of LIMRA Annuity Research. “Equity market volatility remains a concern for conservative investors and FRD crediting rates, on average, continue to outperform CD rates. LIMRA expects these products will continue to be an attractive, short-term solution for risk-adverse investors.”

Fixed indexed 

Fixed indexed annuity (FIA) sales totaled $32.8 billion in the second quarter, 5% higher than the prior year’s results. FIA sales set a new record in the first half of 2025. FIA sales were $60.6 billion, up 1% from the first half of 2024.

“FIA sales remain a steady growth engine for the overall annuity market. Since 2020, FIA sales have doubled as interest in protected investment growth opportunities increased,” said Golembiewski.

Registered index-linked 

Registered index-linked annuity (RILA) set new quarterly and mid-year sales records. In the second quarter of 2025, RILA sales were $19.1 billion, 15% higher than the prior year. In the first half of 2025, RILA sales jumped 18% year over year to $36.7 billion.

“RILA’s value proposition — protected growth with attractive caps and participation rates — is very appealing in the current economic environment,” noted Golembiewski, “With three new RILA market entrants and several new products introduced in 2025 to date, LIMRA expects the growth trajectory for RILA to continue for the foreseeable future, especially as more broker dealers add RILAs into their product mix.”

Traditional variable annuities

Significant market volatility in April pulled down traditional variable annuity sales in the second quarter. VA sales fell 3% to $14.7 billion year over year. YTD, traditional VA sales were $30.2 billion, 4% over the prior year’s results.

Income annuities

Single premium immediate annuity (SPIA) sales increased 6% year over year to $3.6 billion in the second quarter. In the first six months of the year, SPIA sales fell 5% to $6.6 billion. After a soft first quarter, deferred income annuity (DIA) sales rebounded 17% to $1.5 billion in the second quarter. YTD, DIA sales were $2.4 billion, down 2% from prior year.

“Over the past five years, retirees and pre-retirees have grappled with substantial economic uncertainty — heightened market volatility, inflation, and potential public policy changes — that could meaningfully impact their financial security in retirement,” said Hodgens. “In that same timeframe, our research shows greater interest in annuities by both advisors and investors. The Alliance for Lifetime Income by LIMRA will focus its attention to drawing attention to the annuities’ unique value proposition and the peace of mind annuity ownership provides.”

For more details on the sales results, visit: Annuity Sales Estimates (Second Quarter 2025) in LIMRA’s Fact Tank.

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