© 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
© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
Panelists
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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
© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
Agenda
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Strategy & Value Proposition
What it Is
How it Works
Solution Update & Roadmap
Platform Demonstration
© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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.
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
Source: Envestnet – representative capabilities of the Envestnet Unified Managed Platform (UMP).
InvestorPortal
ManagerPortal
AdvisorPortal
EnterprisePortal
Envestnet Insurance Exchange Integration
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
Seamless Integration into ENV OneWealth
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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
© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
Platform Demonstration
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
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!
© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
Thank You
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© 2019 Envestnet, Inc. All rights reserved. For advisor or investment professional use only.
Disclosure
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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.