Much of Texas' state-owned property is effectively uninsured, not self-insured as many officials incorrectly think, because the state fails to set aside money to cover future losses. A 2016 analysis found that about $7.4 billion in Texas-owned property lacks insurance, and a recent example is the $1 million in damage that Hurricane Harvey caused at a corrections department facility.
Legislation advanced by the House Financial Services Committee would require the Financial Stability Oversight Council to consider forms of regulation other than Federal Reserve oversight for nonbank financial firms when systemic-risk issues arise. Another bill approved by the committee would specify that insurers already under state regulation would be exempt from enforcement by the Consumer Financial Protection Bureau.
Insurers and policyholders face challenges with regard to coverage for mass shootings because of uncertainty over how such incidents are defined and the various types of coverage that can come into play. Active-shooter insurance is crucial in such situations, and commercial liability and workers' compensation coverage can apply to some aspects for businesses involved, experts say.
Business interruption was the top risk cited by 42% of respondents to a survey by Allianz Global Corporate & Specialty. Cyberrisk ranked second in the survey, with 40% citing it as the biggest risk, and natural disasters were third.
The National Weather Service has measured waves as high as 60 feet because of a low-pressure weather system off the Pacific Northwest. The Coast Guard says a man swept out to sea by the waves on Thursday is presumed dead, and one woman was injured when a wave knocked her over.
A six-year reauthorization of the National Security Agency's program for warrantless digital surveillance is expected to be signed by President Donald Trump after it gained Senate approval in a 65-34 vote on Thursday. The bill is a renewal of the Foreign Intelligence Surveillance Act's Section 702, which is intended to collect information on people overseas but faces criticism over data incidentally gathered about US residents.
A study from the Stanford Center on Longevity proposes a retirement-spending strategy that focuses on delaying Social Security benefits claiming as long as possible to maximize benefits. The strategy, aimed at investors with retirement savings of less than $1 million, calls for spending savings first and tapping home equity if necessary.
The recent overhaul of US tax law will affect life insurance planning directly through changes to reporting requirements and tax-basis calculations for contracts, write Veralytic founder Barry Flagg and attorneys Thomas Tietz and Martin Shenkman. Indirect effects include the likelihood that clients will no longer need life insurance to pay the federal estate tax, for which the exemption has doubled, they write.
Advisor Dan Cuprill writes that in most cases, doctors only deal with patients who come to them with a specific need and it is unlikely a person with a clean bill of health would ask another doctor for a second opinion. He argues advisors can learn from this by framing conversations with existing and potential clients in terms of their financial needs and concerns.
While the use of robo-advice continues to grow, especially among millennials, Blake Wood of Envestnet points out it is most effective when paired with a human advisor's intelligence and decision-making abilities. "By leveraging AI technology to scale coaching and financial planning services, financial advisors will continue to excel in relating to clients, earning their trust, and providing advice for complex situations," he writes.
- Page 1