LICONY Quarterly January 2018

January 2018
Volume 2, Issue 1

The President’s Report

2018 is upon us and LICONY has hit the There were also significant developments with our regulatory advo-

ground running. However, before we ex- cacy. LICONY formed and led an industry coalition that was success-

amine the year ahead, I’d like to take a ful in obtaining favorable amendments to DFS cybersecurity pro-

moment and look back what we accom- posal. These efforts demonstrated how the industry and depart-

plished in 2017. ment can work together to find common ground. The result is a

Mary A. Griffin On the legislative front, we succeeded in New York regulation that is now a national model. We also success-
having three LICONY legislative priority bills fully managed the implementation of New York’s Paid Family Leave
signed into law by Governor Cuomo. These statute and continue work with regulators as the program goes into
new laws will allow people in New York to effect.

reinvest annuity dividends, vote electronically in mutual life board From an organizational standpoint, we completed the final details of

meetings and receive accelerated death benefits to finance long the consolidation of New York City and Albany offices and found

term care costs. new savings for the association. These efforts have led to a member

We also worked closely with the Department of Financial Services dues reduction that continues in 2018.

(DFS) and the Legislature on bills that would enact Principle-Based We head into 2018 with a full list of priorities that we are already

Reserving (PBR) in New York. While ultimately unsuccessful in 2017, working hard to achieve. Our affirmative legislative agenda includes

our efforts allowed us to provide valuable information to legislators 10 items, including proposals that would help modernize the sale of

and work with the DFS so that the issue can move forward this year. (Continued on page 4)

State Insurance Advisory Board Includes Strong Inside this issue
LICONY Representation
Sheila Davidson Interview .......2
On December 12, 2017, Department of Financial Services (DFS) Superintendent Dave S. Hattem Elected LICONY
Maria T. Vullo announced the 10 appointees who will serve on the newly Board Chair ..............................2
formed State Insurance Advisory Board. The establishment of advisory board Israel Bonds Event....................3
was one of LICONY’s legislative priorities for 2016 and LICONY was pleased to Member News .........................3
see that life companies will be strongly represented on the new Board. President’s Report (con’t) ........4
Advisory Board (con’t) .............4
The industry leaders from LICONY member companies that have been named to Connect with LICONY ...............4
the board include the Secretary-Treasurer of the LICONY Board of Directors, Upcoming Events .....................4
Michael A. Zarcone, who serves as the Executive Vice President and Head of
Maria T. Vullo Corporate Affairs at MetLife. Additional representatives from LICONY member Contact LICONY
companies that were named to the board include; Deana Mulligan, President and CEO of Guardi-
an; Roger W. Ferguson, Jr., President and CEO of TIAA; and Lucy Fato, Executive Vice President Life Insurance Council of New York
and General Counsel of AIG. 111 Washington Ave, Suite 300
Albany, N.Y. 12210
LICONY President and CEO Mary A. Griffin offered her congratulations, saying “We are extremely (518) 436-8417
pleased that DFS Superintendent Maria T. Vullo chose some of the best life insurance executives www.licony.org
in the country to represent our industry on the state advisory board. On behalf of all LICONY
members, we congratulate them on being chosen for this new assignment and are confident that
the expertise they bring will enhance the already strong dialogue the life insurance industry has
with the state.”

(Continued on page 4)

A Year in Review with LICONY Past-Board Chair Sheila Davidson

Sheila Kearney Davidson, the Ex- 2018 and beyond?
Like most industries today, we have to be vigilant when it
ecutive Vice President, Chief Legal comes to cybersecurity threats. I believe the financial services
industry will continue to be target both today and in the fu-
Officer & General Counsel of New ture. Additionally, the sustained low interest rate environ-
ment is a challenge the industry continues to face.
York Life Insurance Company, just
Q. What actions can regulators and legislators take in 2018
completed her second term as the to help the life insurance industry move forward?
There are a few things. The first would be to enact legislation
Chair of the LICONY Board of Di- to authorize Principle-Based Reserving in New York. We also
need to implement regulations that promote uniformity
rectors. across state lines and foster business growth. Lastly, we need
to work with regulators so that New York can be nimble and
Sheila K. Davidson We caught up with her to get her allow for product innovation that will let the industry, and the
state’s economy, grow.
perspective on 2017, thoughts on LICONY, and gain her per-
Q. In your view, what does the future of the life insurance
spective on the future of the life insurance industry. industry look like?
I believe technology will continue to change the way we do
Q. In your view, what were the highlights of your year as business. Millennials access information in new ways and ex-
LICONY Board chair? pect quick response times, so our industry needs to be ready
Working with Mary Griffin as she implemented organizational to adapt to that new demographic. Likewise, I believe agents
changes authorized by the Board was a highlight and all and brokers will rely more heavily on technology as we move
LICONY members are beginning to benefit from that. Watch- forward. I also think our industry will continue to create prod-
ing Mary leverage her extensive relationships in Albany to ucts that help to meet retirement planning needs for an aging
achieve LICONY’s goals was instructive. I was really pleased population.
that three of our legislative priorities were signed into law.
Achieving that was quite an accomplishment. Q. Is there anything else you’d like to add that we haven’t
asked about?
Q. As someone that has dedicated a lot of time to LICONY I really enjoyed my second year term as Chair of the LICONY
over the years, what do you enjoy most about working with Board and I look forward to continuing my work with LICONY
the Association? as we advocate for the industry.
I really enjoy the chance to work with my fellow Board mem-
bers, the LICONY staff, and member company representatives.
The professionalism and acumen of the people that work with
this association is outstanding. The ability of this association
to produce timely information for members and its effective
advocacy with the Legislature and DFS contribute heavily to
the organization’s success and I’m proud to be a part of that.

Q. What are some of the challenges facing the industry in

Dave S. Hattem Elected LICONY Board Chair

Dave S. Hattem is the new Chair of the Mr. Hattem leads AXA Equitable’s Law Department, including the

LICONY Board of Directors for 2018. Mr. compliance, government relations and corporate secretary’s

Hattem is a Senior Executive Director and functions, helping the company navigate the legal and regulatory

General Counsel for AXA Equitable. environment while achieving its strategic goals. Prior to his elec-

As his term begins, Mr. Hattem said, “I am tion as General Counsel in 2010, Mr. Hattem served as Senior Vice
honored to have been elected by my fellow President and Deputy General Counsel, taking on that role in
board members to Chair this organization 2004.

Dave S. Hattem and look forward to working with them as we Mr. Hattem has served as a member of the Board of LICONY since

work to make New York a place where life insurance companies September 2012 and is also a member of the Board of the Schol-

can continue to provide customers with products that protect arship and Welfare Fund of Hunter College.

families and create jobs.”

2

LICONY Leaders Honored at Israel Bonds Luncheon

LICONY President and CEO Mary A.
Griffin and LICONY Board Member
Michael Ferik, Executive Vice Presi-
dent, and Chief Financial Officer at
Guardian Life, both received the Israel
Bonds Insurance Division Leadership
Award at the Israel Bonds Luncheon
held in Manhattan in November.

News from LICONY Members

Foresters Financial Appoints James Boyle as its New President Tom Rattmann Retires from Columbian Financial Group
and Chief Executive Officer
Thomas E. Rattmann has retired as Chief Executive Officer of
Robert Lamoureux, Chair of Foresters Financial Board of Direc- the Columbian Financial Group effective December 31,
tors, announced the appointment of James Boyle as Foresters 2016. The Board of Directors has asked Rattmann to continue
new President and Chief Executive Officer, effective January 8, his service on the Board and as the Board’s Chairman. The
2018. Jim joined Foresters Board of Directors earlier this year in Board also indicated that Michael C. S. Fosbury has become
June and will now lead the organization and evolve and imple- Chief Executive Officer upon Rattmann’s retirement. Fosbury
ment its Purpose-driven strategy and set it on a path of sustain- joined Columbian in 2003, and currently serves as President and
able, profitable growth. a member of the Board of Directors.

Eric Dinallo Joins Guardian as Executive Vice President and
General Counsel

The Guardian Life Insurance Company of America announced
that Eric Dinallo has joined the company as Executive Vice Presi-
dent and General Counsel. Dinallo succeeds Tracy Rich, who has
served as Guardian’s Executive Vice President and General
Counsel since 2009, and has retired.

3 3

LICONY Board of Directors President’s Report (continued from page 1)

Dave S. Hattem, Chair life insurance products and increase the speed to market of certain group life, annuity and
AXA US accident, and health insurance products. LICONY has already begun a dialogue with the
Legislature and DFS and that will certainly continue as the legislative session moves for-
Frederick L. Wortman, ward.
Chair-Elect On the regulatory front, we are actively working with members and the DFS to tackle chal-
Security Mutual Life lenging topics such as suitability, the implementation of cybersecurity regulations and
work on Regulation 210.
Michael A. Zarcone And last, but not certainly not least, this year we will continue to work with the Senate,
Secretary-Treasurer Assembly and DFS to see that PBR is enacted into law. We know the issue is vitally im-
MetLife portant to our industry and we also know that New York’s regulators and lawmakers sup-
port the concept. LICONY is fully committed to working with all sides to get PBR over the
Sheila K. Davidson finish line in 2018.
Past-Chair I want to thank all our LICONY members for their dedication to this association and we look
New York Life forward to working with you in 2018.

Connie Anderson Insurance Advisory Board (continued from page 1)
AIG
Governor Andrew Cuomo enacted legislation on December 31, 2016 to create a New York
Doug Caldwell State Insurance Advisory Board. The board is modeled after a similar state-chartered
Transamerica banking board and will consist of representatives from domestic insurance companies,
insurance producers, and consumers. The board will be tasked with recommending ways
Patrick J. Carty to encourage and grow New York’s insurance industry and to promote the availability of
Zurich North America Life affordable insurance products throughout the state.

Sue Ann Collins Connect with LICONY on Social Media
TIAA
LICONY is on social media and we invite you to connect with
Michael Ferik us to stay up to date on the latest happenings on both
The Guardian Life Twitter and LinkedIn.
Twitter: @LICONYNews (https://twitter.com/LICONYNews)
Michael C.S. Fosbury LinkedIn: https://linkedin.com/15212784/
Columbian Mutual Life
Upcoming LICONY Events
John R. Greed
Mutual of America LICONY has a busy schedule of events planned for the coming months. For the
most up-to-date list of events, visit www,licony.org
Keith M. O'Reilly
Gerber Life Insurance Company Upcoming Events:

John Rugel February 8, 2018: Board of Directors Meeting, Legislative & Regulatory Com-
Allstate mittee Meeting and LICONY/NYSDFS Leadership Dialogue, Lotos Club, NYC

Brooks E. Tingle February 8, 2018: LICONY 50th Anniversary Celebration Dinner, Mutual of Ameri-
John Hancock Life ca, NYC

Patricia J. Walsh May 7, 2018: LICONY Day on the Hill Reception, the Fort Orange Club, Albany, NY
Voya Financial, Inc.
May 8, 2018: LICONY Day on the Hill Events, Albany NY
Timothy A. Walsh
Farm Family 4