By the end of the year, Envestnet’s Insurance Exchange, launched in May, will list Allianz Life’s full portfolio of advisory- and commission-based annuities, the insurance company announced. The announcement comes not long after Orion Advisor Services and Allianz completed their own partnership.
The Envestnet-Allianz partnership allows bank-based advisors, broker-dealers, registered investment advisors or other financial advisors on the Envestnet platform to research and potentially recommend annuities for clients. “By offering [Allianz’s] annuities, advisors in the Envestnet network will have innovative retirement solutions at their fingertips and will be able to streamline their practice and provide more holistic advice to their clients,” Envestnet President Bill Crager said.
It’s an addition of a variety of products to a platform that was described as a “smart play” by Riskalyze Co-founder Aaron Klein. The platform is “a way for fee-only RIAs to still provide access to insurance products where it’s appropriate, and Envestnet can pick up some of that revenue,” he said.
Financial advisors will need an insurance license to present the products, Allianz said in a statement. For advisors without a the requisite license, Envestnet is planning a service called Guidance Desk, to “allow unlicensed RIAs access to the consulting and fiduciary services that would enable them to use the Insurance Exchange.” The Guidance Desk is still in development, with a specific launch date under wraps, according to an Envestnet spokesperson.
Envestnet’s platform is designed to make the sales process more efficient, allowing advisors to incorporate insurance solutions into their wealth planning. Advisors can submit an application, manage assets and better incorporate the annuity and insurance products into their service.
The Insurance Exchange is to be accessible on the Envestnet Advisor Portal and is offered in partnership with Fiduciary Exchange, LLC.
Allianz was impressed with Envestnet’s ease of use, according to Tom Burns, chief distribution officer at Allianz Life. “We have consistently heard from advisors that they want to offer more holistic solutions to help their clients achieve their financial goals,” he said. “Having our annuity products available on the new Envestnet Insurance Exchange helps meet that need.”
