Envestnet Insurance Exchange Powered By Collaboration Between FIDx & SIMON

FIDx & SIMON to Integrate to Deliver a Unified Platform Experience for Annuities, Simplifying Income & Protection Solutions for Client Portfolios

Envestnet, Inc. announces the advancement of its Envestnet Insurance Exchange through a new collaboration between Fiduciary Exchange LLC (FIDx) and SIMON Markets LLC, which will establish a unified platform for financial advisors to assess annuity products from high-quality insurance carriers and incorporate them into client portfolios. The integrated platform will offer full retail annuities lifecycle functionality, bringing together the best technology from FIDx and SIMON to power the Envestnet Insurance Exchange and enhance the end-to-end experience for advisors. This partnership delivers a consistent user experience, whether advisors access the integrated platform directly via either SIMON or FIDx, or via the Envestnet Insurance Exchange.

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“This exciting partnership makes it easier for advisors to offer innovative income and protection solutions for their clients’ portfolios. Additionally, it broadens our suite of solutions and furthers our mission to help our advisors’ clients achieve an intelligently connected financial life,” said Tom Sipp, Group Head of Envestnet Solutions. “By leveraging the best of what the Envestnet Insurance Exchange, FIDx, and SIMON offer, we are creating a truly holistic, unified solution for managing annuities in client portfolios. We believe this changes the game by mitigating disparate points of access with solutions designed to help investors protect what they have earned and give them options to generate a lifetime stream of income.”

“The Envestnet Insurance Exchange has changed the way advisors are able to evaluate both commission-based and commission-free annuities. Our carrier partners are finally reaching new advisors who’ve been difficult to reach in the past,” said Rich Romano, CEO of FIDx. “The Insurance Exchange has broadened the reach of carriers, making it easier for more advisors to include annuities in their portfolio construction process. Now, with the addition of SIMON, the integrated platform will be supercharged and much more intuitive.”

“We listen when the industry speaks, and this collaboration resolves some of the most significant barriers to entry—the difficulties in understanding and purchasing annuities,” said Jason Broder, CEO of SIMON. “Today, we introduce our collaboration with FIDx as the next big step toward advancing the advisor experience with insurtech. We are leveraging the strengths we each bring to the table to deliver a streamlined experience within Envestnet’s ecosystem—a unified, end-to-end platform for brokerage and fee-based annuities.”

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The integration will streamline the entire process of investing in annuities, from pre- to post-trade, within one digital experience, and will include the following:

Pre-Trade Functionality

• Interactive education and training, including NAIC Product Training and end-investor education materials, on-demand and without leaving the platform
• Access to a centralized Annuities Marketplace, fully integrated with carrier connectivity for a more intuitive and streamlined user experience
• Integration with FIDx’s Product Store, which is a single destination for insurance carriers to load, manage and maintain all annuities included in the Marketplace
• Interactive analytics to help explain how products work, including:
  • Efficient Frontier, which guides advisors through allocation selection based on historical risk and return data
  • Income Calculator, which analyzes custom scenarios for annuity income rider options with hypothetical initial premium and rider activation age
• Comprehensive Product Research and Proposal Offering functionality, including:
  • Proposals and illustrations
  • The ability to research every aspect of an annuity, including rider details, subaccount performance, and up-to-date crediting strategy information
  • The capacity for home offices and advisors to assess the risk of an annuity as it compares to holistic household risk, including other accounts
  • Presentation of annuities and managed accounts on a side-by-side basis as part of a single household proposal
  • Access to FIDx’s Partner Portal, which connects unlicensed advisors to outside specialists who can recommend and transact annuities for their clients
• Quantitative analysis of product-level features and functions
  • The ability for advisors to view an annuity’s historical pricing, and compare its performance throughout the life of the trade
• SIMON Spectrum, which conducts risk analysis to determine the best-fit alignment of annuity solutions based on protection, upside, liquidity, simplicity, and underlier history

Trade Functionality

• Account-Opening Workflow to assist with off-platform trade activity, including an engine for reducing not in good order (NIGO) assessments for documents
• Complete integration with application providers to make it easy for advisors to do business with insurance carriers

Post-Trade Functionality

• A new Lifecycle Portal centralizing an advisor’s book of business across multiple carriers in one location with:
  • Annuity Analytics for understanding in-force management and generating proactive data-driven insights, and advisor/firm recommendations powered by Envestnet Data Intelligence
  • Daily account reporting, model management, and risk drift monitoring
  • Tools to serve in-force annuity contracts, including re-allocation analytics and automated lifecycle event notifications
• One streamlined ecosystem spanning the capabilities of SIMON and FIDx to make it easy to see and manage upcoming opportunities and perform reviews of client holdings

“The combined power of our best-in-industry offerings will provide distribution firms and their advisors a single point of access for annuity management,” said Mr. Romano. “All the pieces will be in place to service annuities as a truly viable asset class within an advisor’s practice.”

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