Regulators advance shorter, streamlined annuity buyers guide

An effort to modernize the National Association of Insurance Commissioners' annuity buyer's guide moved forward Monday, with a working group approving a revised, shorter version designed to give consumers a more accessible introduction to annuity products.

The Annuity Buyer’s Guide Working Group voted to adopt the proposed guide, incorporating technical changes suggested by the American Council of Life Insurers and other industry trade groups.

Matt Gendron is acting deputy director and general counsel for financial services at the Rhode Island Department of Business Regulation. He co-chaired the working group and said they are trying to update a guide produced in 2013.

Regulators who handle annuity sales complaints can tell that the buyer’s guide isn’t doing its job, Gendron said.

“The consumers that are complaining have not looked at the buyer's guide because it is an unwieldy document,” he explained. “It was the best effort we had at the time. We've got better research. We're going to be testing whatever we do to make sure it's working the way we intend.”

The revised document will now go to the NAIC's Life Insurance and Annuities Committee for review before being circulated to the broader membership for consideration and approval for consumer testing.

A broader effort

The effort is part of a broader initiative to streamline the information consumers receive when shopping for annuities while making more comprehensive educational resources available online.

Work took place throughout 2026 on what to include in the updated guide. Key additions include an explanation of the different types of annuities, how agents get paid and the liquidity/illiquidity of the products.

At one point early in the process, industry trade groups objected to the "tone and tenor" of the buyer's guide reboot.

The working group also plans to develop a more comprehensive online educational resource that could address issues too detailed for the shorter guide.

"We're trying not to overwhelm the consumer with information," Gendron said. "We're trying to give them a primer of what they need to know, and we're going to have an immediate reference to a bigger document."

Peter Gould, an annuity owner from Indiana, urged regulators to ensure that consumers without smartphones or computers are not left behind.

But Gendron cited Pew Research data indicating that 97% of Americans have access to the internet, arguing that an online resource would reach most prospective annuity buyers.

'How can I evaluate?'

Gould said the shorter guide should be distributed alongside a comprehensive printed version, arguing that an online document should supplement rather than replace printed materials.

He also questioned whether the abbreviated guide would give consumers enough information to compare products, particularly fixed indexed annuities. Prospective buyers need explanations of product features to understand how indexed annuities work, Gould said.

"If I'm buying an FIA, how can I evaluate or compare products without understanding caps, participation rate spreads, and all that jazz?" he asked.

He proposed several additional consumer protections and disclosures.

"Consumers make the simple assumption that the government or regulators would not allow their insurer to fail, and I think they need to be notified that FDIC doesn't cover the annuity," Gould pointed out.

Gould also suggested that the guide explain state guaranty association protections and clarify that the insurance company named in an annuity contract is responsible for paying the promised benefits.

Lauren Van Buren is working group chair and chief legal counsel for the Wisconsin Office of the Commissioner of Insurance. Many of Gould's recommendations are "substantive" and were considered by the drafting group, she said.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.