By David F. Woods, CLU, ChFC, LUTCF, NAIFA CEO

As I write this on July 1, it is six months to the day since I took over the reins at NAIFA. It seems an appropriate moment to share with you how your organization is doing.

Frankly, it’s doing a heck of a lot better.

Consider that at the end of the last fiscal year—August 31, 2002—we showed an operating loss of $2.7 million, our accounts payable were $1.7 million and we did not have a CEO or a CFO. Today, NAIFA has a new CEO, COO and CFO; we have cut nearly $2 million in expenses and are current with our accounts payable. Except for a surprise tax assessment by the District of Columbia, we would have ended this year with a small operating gain. The Finance Committee has approved a budget for fiscal year 2004 that projects a $750,000 operating gain (based on a conservative estimate of 60,000 members), which the Board will vote on at its August meeting. Today, we are more efficient. For example, we have reorganized the law and government relations departments into one integrated unit, linked forces with the Association for Advanced Life Underwriting (AALU) and the American Council of Life Insurers (ACLI), sent out more “Action Alerts” and become more visible on Capitol Hill, all the while saving nearly $400,000 from that budget alone.

Finally, and perhaps most importantly, the Transformation Task Force has created a plan for NAIFA’s future that focuses on just two things: political advocacy and providing benefits and programs designed to improve your bottom line—nothing else.

These changes are being felt throughout the federation. All who traveled this spring to state conventions and association leadership conferences have reported a growing sense of optimism and enthusiasm.

While I would love to claim credit for all this success, the truth lies elsewhere. Interim CEO Jim Benson was the right man at the right time, the Board of Trustees has shown great leadership in dealing with unpleasant facts, and hundreds of volunteers and state and local association executives have put forth superhuman efforts. Finally, and most gratifyingly, NAIFA staff members have been dedicated, self-sacrificing and dauntless in their determination to rebuild this great organization.

NAIFA is again establishing itself as the central organization in our industry.

NAIFA is again establishing itself as the central organization in our industry. All of our organizations play an important role: AALU, ACLI, The American College, the Association of Health Insurance Advisors, GAMA International, the Life and Health Insurance Foundation for Education, LIMRA International, LOMA, the Million Dollar Round Table, the National Association of Independent Life Brokerage Agencies, the Society of Financial Service Professionals, etc. But in an industry where distribution is king, all look to NAIFA and its grass-roots network for leadership. Without a strong NAIFA at the core, many of these organizations would be adrift, and certainly the company organizations would find their challenges much greater.

Now is the time to collaborate, cooperate and leverage each other’s strengths for the benefit of all. Under the direction of a strong and visionary Board of Trustees, NAIFA is once again demonstrating it has the leadership capacity to spearhead that effort. Many would say, “Just in time!”

It’s been a great six months. Thanks to all—and stay tuned.

David Woods is CEO of NAIFA and president of the LIFE Foundation. Previously a MassMutual agent for 30 years, he has been an MDRT member since 1970. He was NALU president in 1986-87.

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