Biden Budget Boosts Health Subsidies, Broadens Net Investment Income Tax

Link: https://www.thinkadvisor.com/2021/06/01/biden-budget-boosts-health-subsidies-broadens-net-investment-income-tax/

Excerpt:

The current, emergency health insurance premium tax credit subsidy levels would become permanent.

Either the net investment income tax or self-employment tax would apply to all individual income over $400,000.

The definition of net investment would expand.

Author(s): Allison Bell

Publication Date: 1 June 2021

Publication Site: Think Advisor

Financial Institutions Form Global Alliance to Fight Climate Change

Link: https://www.thinkadvisor.com/2021/04/21/financial-institutions-form-global-alliance-to-fight-climate-change/

Excerpt:

On the eve of President Joe Biden’s virtual climate change summit with approximately 40 other world leaders and the fifty-first anniversary of Earth Day, a new alliance of 160 financial institutions was formed to achieve net zero by 2050 or sooner.

The Glasgow Financial Alliance for Net Zero (GFANZ) consists of three separate groups representing different sectors of the financial universe — the Net Zero Banking Alliance (NZBA), comprising 43 banks from 23 countries including Bank of America, Citi and Morgan Stanley in the U.S.; the Net Zero Asset Managers Alliance of 87 firms, including BlackRock, Vanguard, Allianz Global Advisors, Invesco and State Street Global Advisors and Trillium Asset Management, which joined Wednesday; and the 37-member UN-Convened Net Zero Owners Alliance, which includes the David Rockefeller Fund and the California Public Employees’ Retirement System (CalPERS).

Author(s): Bernice Napach

Publication Date: 21 April 2021

Publication Site: Think Advisor

Tax Rules Shape U.S. Life COVID-19 Impact: Fitch Analysts

Link: https://www.thinkadvisor.com/2021/04/21/tax-rules-shape-u-s-life-covid-19-impact-fitch-analysts/

Excerpt:

At big life reinsurers, U.S. claims have averaged about $5 million to about $25 million per 10,000 COVID-19  deaths reported for the entire  U.S. population, according to the analysts.

RGA could be facing $15 million to $25 million in claims per 10,000 U.S. population  COVID-19 deaths, the analysts estimate.

Even at RGA, however, 2020 COVID-19 claims amounted to only about 6% of net premiums earned, and all of the life reinsurers were profitable in 2020, the analysts say.

Author(s): Allison Bell

Publication Date: 21 April 2021

Publication Site: Think Advisor

Consumers Want Liquidity: Survey

Link: https://www.thinkadvisor.com/2021/03/23/consumers-want-liquidity-survey/

Excerpt:

The Million Dollar Round Table (MDRT) looks at what consumers want, and need, in a new batch of results from a survey of 2,034 U.S. adults, ages 18 and older, that was conducted in November 2020, as the third U.S. wave of the COVID-19 pandemic was beginning.

….

About 68% of the MDRT survey participants had investments of some kind, according to the public results summary and the survey executive summary.

The pandemic hit the finances of many of the survey participants hard: 19% said their income rose in 2020, but 35% said their income fell.

About 82% of all of the participants said they were saving money, and many of them reported aiming more for liquidity than for a secure retirement.

Author(s): Allison Bell

Publication Date: 23 March 2021

Publication Site: Think Advisor

5 States Where Pandemic Stress Could Hurt CEOs’ Health

Link: https://www.thinkadvisor.com/2021/03/23/5-states-where-pandemic-stress-could-hurt-ceos-health/

Excerpt:

The Great Recession had the mortality effect of increasing a typical CEO’s age by about 1.5 years.

Anti-takeover laws had the mortality effect of decreasing a typical affected CEO’s age by about 2 years.

The Great Recession made an affected CEO look an average of 1.2 years older, based on assessments by computers equipped with age-estimation software.

Author(s): Allison Bell

Publication Date: 23 March 2021

Publication Site: Think Advisor

MassMutual Sees Crisis Hitting Younger Adults Harder

Link: https://www.thinkadvisor.com/2021/03/29/massmutual-sees-crisis-hitting-younger-adults-harder/

Excerpt:

About 25% of the millennials and zoomers said they’re now having trouble with day-to-day expenses, compared with 19% of the GenXers and 9% of the boomers.

Twenty percent of the survey participants in the younger two age groups said they’ve had to adjust their lifestyles to keep costs down, compared with just 14% of the GenXers and 7% of the boomers.

Author(s): Allison Bell

Publication Date: 29 March 2021

Publication Site: Think Advisor

Bill Reintroduced to Shore Up Social Security, Medicare

Link: https://www.thinkadvisor.com/2021/04/15/bill-reintroduced-to-shore-up-social-security-medicare/

Excerpt:

A bipartisan group of lawmakers reintroduced Thursday legislation to shore up the Social Security and Medicare Trust Funds.

The Time to Rescue United States Trusts, or TRUST Act, would establish bipartisan, bicameral commissions to address the long-term solvency of major trust funds.

….

The Congressional Budget Office projects the Highway Trust Fund will be insolvent by 2022, the Medicare Hospital Insurance Trust Fund in 2026, the Social Security retirement fund in 2032, and Social Security Disability Insurance in 2035.

Author(s): Melanie Waddell

Publication Date: 15 April 2021

Publication Site: Think Advisor

Actuaries Find Race and Ethnicity Disclosure Gap

Link: https://www.thinkadvisor.com/2021/04/06/actuaries-find-race-and-ethnicity-disclosure-gap/

Excerpt:

About 12% of U.S. residents are Black, and 15% are Hispanic or Latino.

In the insurance industry, 12% of employees are Black and 12% are Hispanic or Latino.

Just 4.4% of new SOA members are Black, and 3.7% of new members are Hispanic or Latino.

Author(s): Allison Bell

Publication Date: 6 April 2021

Publication Site: Think Advisor

5 Worst States for New COVID-19 Cases

Link: https://www.thinkadvisor.com/2021/03/30/5-worst-states-for-new-covid-19-cases/

Excerpt:

The fourth U.S. wave of COVID-19 cases has started.

It’s not yet clear whether the wave will be a big one, or a little swell tamped down by masks, vaccines and successful social distancing efforts. But the total number of new cases in the United States increased to 422,980 in the seven-day period ending March 27, up 11% from the total for the week ending March 20.

The number of cases per 100,000 residents increased to 127. That was up from 115 per 100,000 U.S. residents a week earlier, and up from a recent low of 113 per 100,000 U.S. residents two weeks earlier.

Author(s): Allison Bell

Publication Date: 30 March 2021

Publication Site: Think Advisor

Alicia Munnell: Biden’s Social Security Tax Hike Plan Falls Short

Link: https://www.thinkadvisor.com/2021/03/19/alicia-munnell-bidens-social-security-plan-falls-short/

Excerpt:

THINKADVISOR: What’s your take on President Biden’s proposal for fixing Social Security?

ALICIA MUNNELL: A step in the right direction. Good ideas but incomplete. There’s nothing wrong with it. It’s just not complete. He wants to have a few benefit enhancements and to increase taxes for people earning over $400,000. But I don’t think his numbers close the full 75-year Social Security [system] shortfall.

Author(s): Jane Wollman Rusoff

Publication Date: 19 March 2021

Publication Site: Think Advisor

First COVID-19 Wave Hit Preferred Insureds Hard: Work Group

Link: https://www.thinkadvisor.com/2021/03/12/first-covid-19-wave-hit-preferred-insureds-hard-work-group/

Excerpt:

The team found that deaths attributed to COVID-19 accounted for 5.1% of the individual life insurance death claims participating insurers received in the first half of 2020.

About 2% of all of claims for all causes were for people younger than 45. That was about the same percentage as in 2019.

About 1% of the COVID-19-related claims submitted in the first half of 2020 were for people under 45.

The overall increase in the odds of dying from any cause was highest for insureds in their 70s.

Author(s): Allison Bell

Publication Date: 12 March 2021

Publication Site: Think Advisor

Group Wants Life Underwriters to Post COVID-19 Standards

Link: https://www.thinkadvisor.com/2021/03/01/group-wants-life-underwriters-to-post-covid-19-standards/

Excerpt:

The Consumer Federation of America says life insurers should voluntarily disclose the changes they are making in life insurance underwriting procedures and standards as a result of the COVID-19 pandemic.

The Washington-based federation says life insurers ought to at least answer basic questions, such as whether they will require applicants to use COVID-19 vaccines, what kinds of tests and test results they’ll require and whether and how standards might vary by applicant age.

Author(s): Allison Bell

Publication Date: 1 March 2021

Publication Site: Think Advisor