The lifetime-income security agency would be empowered to vet the full range of income solutions and administer an industry-funded insurance pool, he said in a speech at the IRI conference.
Insurers with top-tier credit scores and those who offer conservative annuity or drawdown plans would pay lower fees into the pool than those with lower scores or aggressive plans, Mr. Reynolds said.
He also called for a national insurance charter.
“We have had conversations with many insurers and legislators in Washington; there's strong interest for this [agency], and I think it's something viable,” Mr. Reynolds said. “It will take a cross section of insurers and people in the industry to really push this forward.”
Such a regulatory agency would have the same impact on confidence as the Federal Deposit Insurance Corp. had following the banking crisis during the Great Depression.
“At a single stroke, this new national insurance regulator would give plan sponsors and advisers confidence that nationally approved lifetime-income solutions would keep their promises,” Mr. Reynolds said.
Email Darla Mercado at dmercado@investmentnews.com
