envestnet insurance exchange and the advisor wealth ...€¦ · the customized services, solutions...

© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.

Austin, TXMay 1-2, 2019

Envestnet Insurance Exchange and the Advisor Wealth Planning Experience


Panelists

2

Joseph Nagel

VP, Distribution Technology, FIDx

Todd Cooper

SVP, Institutional Business Development, Envestnet

Kent Bonniwell

SVP Strategic Development, Envestnet

Richard Romano

Chief Technology Officer, FIDx


Agenda

3

Strategy & Value Proposition

What it Is

How it Works

Solution Update & Roadmap

Platform Demonstration


The Evolution of Advice to Financial Wellness

Packagingand Selectionof Products2.0 = Financial Planning 3.0 = Financial

Wellness4.0 =

• Democratization of capital market products (MFs, ETFs, Alts)

• Advice = asset allocation and product selection

• UHNW/HNW/Mass Affluent HHs

• Accessibility of planning software

• Advice = balance of daily and aspirational goals

• UHNW/HNW/Mass Affluent HHs

• Holistic services beyond market returns — planning, budgeting, lending, insurance, tax, impact investing, etc.

• Advice = comprehensive planning and seamless integration of solutions, driven by data

• Applicable and accessible to everyone

Product Access 1.0 =

• Access to stocks, bonds, banking and insurance

• Advice = buy/sell

• UHNW/HNW HHs

THE GATEWAY

Silos Fusionto to Network

4


Intelligently enable a network of integrated solutions that empowers Advisors and Enterprises to advise all aspects of financial advice so financial wellness can be a reality for everyone.

Our Mission

Envestnet Insurance Exchange

Budgeting

Planning

InvestingManaging credit

Protection

Budgeting: Spending vs income

Planning: Short & long-term goals

Investing: long-term investment assets & hard assets

Protection: Protected lifetime income, tax-deferral, estate planning

Managing Credit: Credit balances, loans, mortgages, education, real estate and business

5


Our Strategy

The customized services, solutions and products that are the allocation of assets in financial wellness

The fuel that creates and deploys intelligence into the advice ecosystem for financial wellness

The engine that drives the ecosystem of financial wellness and advice

Financial Wellness

Clients

Advisors

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Integrating Insurance Solutions

ENV believes it is important to make advisors essential to the client relationship

ENV strives to offer the full “Life Cycle of Advice”

Benefits of insurance solutions have been missing from the platform

Addressing – Budgeting, Planning, Investing, Managing credit, and Protection

Financial Planning

Investment Fulfillment

Monitoring

Tax Deferral

Death Benefit

Guaranteed Income

Principal Protection

7


Envestnet Insurance ExchangeIntegrating the protection of insurance products alongside investment solutions on a single, integrated platform.

Fully integrate insurance solutions to help deliver a lifecycle

of advice on the Envestnet platform

InvestmentEcosystem

InsuranceEcosystem

Wealth Planning

Ecosystem

New BusinessRecommendationsTransfers of AssetsFinancial PlanningPortfolio ImplementationPortfolio MonitoringPerformanceComplianceReportingBilling

Facilitates “Life Cycle of Advice” – complete wealth management solutions to the end client, from accumulation through decumulation, through one seamless platform

Evolution of Insurance Ecosystem from linear value chain to platform unlocking new sources of value creation for advisors and clients

8


Envestnet Insurance ExchangeAn Industry Inclusive Approach to Guaranteed Income

What is FIDx? What is the Envestnet Insurance Exchange?

FIDx is an industry-changing platform that connects insurance carriers and wealth

management platforms allowing advisors to fully integrate annuities and the benefits of insurance

into the advisory ecosystem.

The Envestnet Insurance Exchange is modernizing the linear value chain of annuity distribution

through full integration of the FIDx platform into ENV2 which unites top insurance carriers and

investment firms.

9


Value Proposition to Modernize Annuity Distribution

• Digital proposal and account opening process with multiple L&A checkpoints reduces NIGOs

• Accommodates all product AND compensation types

• Parametric product management across carrier, product and investment

• In-force transaction processing

• T+1 performance reporting aligning annuities with traditional asset classes

• Cross-product type comparisons of products, features and pricing

• Fixed, Fixed Indexed, Structured, Variable, and income Annuities (Fee & Commission based)

Modernization of Annuity Distribution Wealth Management Integration

• Facilitates “Lifecycle of Advice”

• Seamless integration of annuity product types into the Envestnet platform

• Integration of annuities into asset allocation models with monitoring

• Algorithmic recommendations aligning client needs with product solutions

• Lifecycle management of back book including algorithmic triggers for advisors

• Goals-based integration into financial planning software

• PPVA solutions for HNW/UHNW clients

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What’s in it for Financial Advisors?Choice• Access to best–in–class insurance carrier solutions in one place

Control• Ability to create variable annuity based models within the current risk management framework• Monitor Variable Annuity models and traditional managed account investments alongside

current Investment PolicyConvenience• Access and manage investment accounts and annuities all on one platform• End-to-end, rules-based digital application process and account management• Product filtering capability to align products with client’s needsTransparency• Offer investors one fee―provide aggregate billing across managed accounts and annuity

products• Consolidated portfolios provide a full view of a client’s investments and protection solutions for

a coordinated wealth management strategy• Daily annuity performance reporting aligning with traditional asset classes in managed

accounts, to enable portfolio rebalancing and guide in-force transactions

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What’s in it for Product Managers?

Choice• Increased Efficiency in Managing Approved Products - Approve and manage

carriers, annuity products and sub-account investments on the Envestnet platform, similar to investment products

Control• Apply Investment Policy Governance to Annuities and Traditional

Investments• Ensure that variable annuity models and traditional investments within

managed accounts align with your firm’s risk tolerance philosophy.Transparency• Analytical Capabilities to Assist with Product Due Diligence• Conduct cross-product type comparisons of annuity products, features and

pricing

12


What’s in it for Compliance and Operations?

Choice• Investment Policy Rules to Govern Sub-Accounts - Ensure overall account

allocations are aligned with investment policy rules

Convenience• Direct Connectivity to Carriers to Cover Licensing and Appointment Checks

• Direct integration with carriers across three separate check points ensure advisors have the necessary licenses and are appointed with a carrier before they’re able to proceed with the proposal

Transparency

• Supervisory Annuity Review Capabilities of all Transactions on the Platform • Review all annuity applications entered by advisors and approve or reject at

one singular point on the platform instead of having to handle approvals offline.

• Robust reporting makes it even easier to track and manage applications

13


Source: Envestnet – representative capabilities of the Envestnet Unified Managed Platform (UMP).

InvestorPortal

ManagerPortal

AdvisorPortal

EnterprisePortal

Envestnet Insurance Exchange Integration

14


Envestnet Insurance Exchange Integration

PRACTICEIntegrated proposal, L&A checks, Annuity Order Entry system integration and account opening

CLIENTSIntegrated annuity reporting within client households, integration with financial planning tools

MANAGEIn-Force Transaction Processing

RESEARCH Carrier Product/Sub-account data, fact sheets and analysis

PLATFORMIntegrated annuity training, education and firm-specific reference information

Representative Platform Advisor Portal Experience

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Seamless Integration into ENV OneWealth

16

Step 1

Step 6 Step 2

Step 3

Step 4

Step 5

Insurance Exchange withENV Platform

Protection AssessmentNew protection questionnaire helps advisors assess clients’ protection risk and identify annuity solutions

ProposalsNew proposal combines investments and annuities within one asset allocation model

Product SelectionAdvisors research, compare and select attributes, products, riders and sub-accounts with available filtering

Review IllustrationHome Office and advisor can review all client facing information including compliant illustrations and SIS

Submit ApplicationData previously collected in the Proposal process, including annuity information, is pre-filled in the digital application

ManageDaily performance reporting is available for annuities aligning with investment products; In-force transaction processing via platform is also available (1)

(1) Certain reporting and in-force transaction process represent 2019 Roadmap Development

Representative Workflow


Technology Infrastructure

Daily Account Reporting

Enterprise Firm

ENVWealth

Management Platform

FIDx

JNL

Allianz

GlobalAtlantic

Prudential

Brighthouse

Nationwide

AOE Processing

Illustrations

Product Store

Transactions

Advisor

• Research• Risk Profile

(RTQ)• Financial Plans• Proposals• Account Opening• Account Mgmt

Insurance Requests• Product Data• Illustrations• Application Entry• Suitability• Policy Value Queries• Transactions• Education

Insurance Responses• Products• Illustrations• App Screens• Suitability Screens• Enriched Policy Data• Transaction

Confirms

Commission Processing between firms

Carrier X

17


Carrier, Technology and Distribution Update

Carriers• FIDx has engaged 6 out of the top 20 carriers with additional carrier engagement

planned for 1Q to 2Q 2019• Additional 5-year exclusive arrangement with ENSPIRE Investments for PPVA products

Technology Integrations• Full annuity order entry integration with Insurance Technologies and Ebix/AN4• Concluding annuity order entry with iPipeline/AFFIRM (Q3 2019)

Enterprise Activation• Initial launch on Envestnet in 1Q 2019• Broader launch on Envestnet in 2Q 2019

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Technology Timeline & Roadmap

Foundational Pilot Launch

End-to-End Processing Proposal to Application – Straight thru L&A validation connection with carriers

Seamless Account Maintenance Policy VA Model-based Trading/Rebalancing

Product Expansion Fee-based and Commission-based Annuities Product Attributes/Features

Client Reporting Policy reporting by product type Performance Reporting with Insurance Benefits

2019 RoadmapTransformational

Goal-Based Solutions Incorporating annuities into goal based

solutions Allocation algorithms to annuities Integration w/ 3rd party planning tools

Account Automation Policy Maintenance thru to Carriers

Enhanced Financial Planning/Proposal Product Analytics & Comparisons Multi-threaded Illustrations Side-by-Side Comparisons

Home Office Tools Governance Controls/Monitoring

Enhanced Proposals Integrated Insurance Illustrations Integration to Industry Vendors Enriched Reporting Expanded insurance daily data footprint Policy and household

Product Expansion Annuities - Variable, Fixed, Fixed Indexed Compensation Agnostic Product Attributes/Features

Research Center Expanded Insurance Product Data

2018 – 2019 Completed Development

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Enterprise Client Engagement Process

Sales IntroductionDiscovery Platform OverviewImpact AssessmentPlatform Deep Dive Solution Proposal Contract Amendment

Activation Project CoordinationProject Kickoff Project Execution

work streamsconfigurationtesting

Launch & Rollout

Sales, Training and Support

Training PlanRollout MeetingsWholesaler CoordinationOngoing Support

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Platform Demonstration

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For more information

Please visit the Envestnet Insurance Exchangekiosk in the Exhibit Hall to chat with Envestnet experts about our insurance technology offering.

Upcoming Envestnet Technology sessions:• Open ENV Integrations and Updates @ 1:30 PM• How are Advisors Creating Value Through a

Planning-Centric Experience @ 2:30 PM• Delivering a Better Advisor Experience @ 2:30

PM

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Connect with us using the Advisor Summit mobile app and

on social media using the #ENVSummit hashtag!


Thank You

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Disclosure

24

The information, analysis, and opinions expressed herein are for general and educational purposes only. The services andmaterials described herein are provided on an “as is” and “as available” basis, with all faults. Any illustrations herein do notrepresent client information or actual investments. Envestnet disclaims all warranties, express or implied, including, withoutlimitation, warranties of merchantability or fitness for a particular purpose, title, non-infringement or compatibility. Envestnetmakes no representation or warranties that access to and use of the internet while utilizing the services as described hereinwill be uninterrupted or error-free, or free of viruses, unauthorized code or other harmful components. Envestnet reserves theright to add to, change, or eliminate any of the services and/or service levels listed herein without prior notice.

Nothing contained in this presentation is intended to constitute legal, tax, accounting, securities, or investment advice, nor anopinion regarding the appropriateness of any investment, nor a solicitation of any type. All investments carry a certain risk,and there is no assurance that an investment will provide positive performance over any period of time. Investment decisionsshould always be made based on the investor's specific financial needs and objectives, goals, time horizon and risk tolerance.

This presentation refers to information products or services that may be in development and not yet available. Accordingly,nothing in this presentation should be construed as a representation or legal agreement by Envestnet to make availablespecific products or services (including, without limitation, concepts, systems or techniques.)

FOR INVESTMENT PROFESSIONAL USE ONLY. NOT FOR DISTRIBUTION TO THE GENERAL PUBLIC.

envestnet insurance exchange and the advisor wealth ...€¦ · the customized services, solutions...

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