The next wave of annuity innovation

LAS VEGAS - Simpler products, combined with an increased use of technology, will usher in the next wave of annuity innovation, a panel of industry leaders said during Protectors 2026.

“It’s not only about technology but also about the way technology can bring a product to life and how products are made simpler on the front end,” said Carrie Freeburg, partner at Market Synergy Group.

“Products are getting more complex behind the scenes, but we can make them simpler on the front end by bringing the product to life with technology,” she said. “Also important is that much of the time, the marketing, the storytelling of the product comes later. If we ingrain that in the product development process, we can come back to the product design and ask whether we need that feature and make it a simpler product.”

Ben Koziol is watching the move to offering annuities in 401(k) plans closely. He is senior vice president and retail annuity leader with Aspida.

“It’s something we believe in,” he said. “We’ve done a great job of accumulating in 401(k)s but not on decumulation. It’s possible we could help people glide into annuities as a default. As an industry, we haven’t agreed on a design – it’s not a one-size-fits-all.”

Simplicity versus interest rates

Simple annuity products prevail when interest rates are high, but products must become more complex when interest rates dip, said Dominic Cursio, chief marketing officer at Legacy Marketing Group.

“It’s because we need to be more innovative with products when interest rates fall,” he said.

An increasing demand for long-term care solutions, combined with the current interest rate environment, will lead to more than $1 billion in sales of hybrid annuity/LTC products, Koziol predicted.

“It’s an interesting time and space to get into,” he said.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.