AAIFPA

Meeting of Asian American Agents – Enthusiasm in a Challenging Market
by Leila Morris

A quiet town outside of San Francisco was the setting for a robust meeting of the 2009 Asian American Insurance and Financial Professional Assn. (AAIFPA). About 500 agents -attended the one-day event in Foster City, which was sponsored by ING. Other exhibitors included Kaiser Permanente, New York Life, United Healthcare, MetLife, Prudential, the Chinese Health Care plan, Health Net, AIG, and Quality of Life.

With cameras flashing and eager reporters holding out microphones, the press conference seemed more fitting for a panel of LA Lakers than for insurance executives. Fourteen Asian media outlets covered the meeting including newspapers, T.V. stations, and radio shows -- representing a variety of languages.

“Northern California has a significant Asian population and holding our national conference here is an important step in our growth as a national organization,” said Haidi Huang, president of AAIFPA Board of Directors.” AAIFPA, which was founded in 2007, plans to open branches nationwide. Chinese Americans make up a large percentage of members, but AAIFPA hopes to attract other Asian ethnic groups to join the ranks of Association.

The meeting featured networking, seminars, and a small exhibit hall. A night of entertainment was kicked off with a team of talented young performers who brought to life mythical dragons seen in Chinese New Year Parades. As someone who simply drops the kids off at their various activities, I was humbled by their mothers who performed the elegant Chinese Dragon dance.

During his keynote presentation, X. Rick Niu, executive vice president and chief growth officer of ING’s U.S. Insurance Group, said that the financial and insurance industry is facing challenges. Products and compensation are changing. The industry is drawing attention from regulators and reform is coming. Insurance companies will be seeking greater alliances.

But he assured agents that the financial services industry would continue to bloom despite these challenging times. “There has never been a better time to be in this field. You help families and individuals in times of crisis...One thing that all crises have in common is that they end. The word crisis has two characters in Chinese – one means danger and the other means opportunity – meaning that there is light at the end of the tunnel.”

People still need to protect their families and businesses and send their kids to college. The Baby Boomers need planning for retirement. “You serve the Asian Americans – one of the most successful and fast growing Americans. They need your help. You are the teachers for planning and investing and helping people succeed. The economy creates pressure and people want to know how to protect their financial future…During the Great Depression, people thought that the good times were gone for good. But, America came back stronger than ever and we will do it again.”

Chris Layeux, MBA, CLU, ChFC, director of Premium Financing & Advanced Case Design for ING gave attendees the lowdown on premium financing. There are sales opportunities in several areas: traditional premium finance, foreign nationals, business sales, and exit strategies.

Why do premium financing? Many high net worth clients are working to reduce their estates. They are already gifting. They are using many advanced techniques, such as family limited partnerships (FLP), but they have not stopped increasing their estates and they have not stopped investing. These are successful people; they are good at making money, which is why they have an estate tax issue. Their estate might be growing faster than they can gift it to their heirs.
Premium financing works best with the following:
• Older clients (ages 80+) using survivorship products.
• High net worth clients using the Walton GRAT Rollout strategy on the Installment Sale rollout strategy.
• Trusts already funded with substantial assets.
• Business owners with new business opportunities owned by the trust.
• A combination of traditional premium financing and a private loan arrangement.
In all, the meeting focused on how brokers can take a challenging time and turn it into opportunity for themselves and their clients.
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Leila Morris is the editor of California Broker Magazine.