Annuity companies are scrambling to reduce rates and starting to pull products from the market, said Sheryl Moore, Wink CEO.
Carriers are holding back while the equity and bond markets roil in volatility. Although the stock markets have been dropping persistently, bond prices have been fluctuating wildly, especially since the Federal Reserve cut its funds rate to near 0%.
Thirty-three companies have reduced rates 113 times since March 1, Moore said.
Although most of pulled products and rate changes involve fixed indexed annuities, at least one major company has pulled all its fixed products as of March 23, Moore said.
This month, carriers pulled five FIAs and one variable annuity, Moore said. Companies pulled six FIAs last month.
Steven A. Morelli is editor-in-chief for InsuranceNewsNet. He has more than 25 years of experience as a reporter and editor for newspapers and magazines. He was also vice president of communications for an insurance agents’ association. Steve can be reached at [email protected]
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