Senator Warren says life insurers admit to offering 'kickbacks'

Source: Reuters

U.S. Senator Elizabeth Warren said 13 major U.S. life insurers had admitted to using incentives such as expensive vacations and gifts, which could encourage agents "to put their own interests ahead of their clients."

The senator had launched an investigation into 15 major annuity providers in April amid concerns about the "kickbacks" they offered to brokers who peddle products to retirees.

Warren voiced her concern about the loopholes in law that allows some advisers to steer customers into complex financial products for higher rewards.

"Research suggests that this loophole costs Americans an estimated $17 billion every year," she said in a report released by her office on Tuesday.

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Read more: http://www.reuters.com/article/2015/10/27/us-usa-annuities-warren-idUSKCN0SL2Q820151027