Agent Commissions Rise For Annuities in 1Q

“We haven’t had an increase in indexed annuity sales this big in nearly two years,” said Sheryl J. Moore, president and CEO of both Moore Market Intelligence and Wink, Inc. She continued, “I look forward to seeing how improvements in interest rates will affect sales throughout the remainder of 2018.”

The new variable annuities are not even all variable, but they all carry some level of risk for the investor.

Variable annuity sales are expected to turn positive this year, propelled by the easing of regulation, but also benefiting from the innovation that regulation had inspired.

The almost-dead DOL rule gets much of the credit for the boost in fixed indexed annuity sales in LIMRA’s numbers. But rising interest rates allowing more attractive annuity rates are also cited as helping sales.

Buffered products helped Allianz level out an otherwise uneven first quarter. The increasingly popular variation of variable annuities is considered “capital-efficient” for insurance companies.

When the Department of Labor postponed the full implementation of its fiduciary rule, it apparently also opened the gate to more annuity sales. Companies across the board are reporting stronger performance in earnings calls.

A California insurance agent is accused of selling an annuity to a man diagnosed with dementia and then helping the man’s relative withdraw $700,000 from the annuity, incurring $92,000 in charges.

The SEC best-interest rule includes words and meaning that could conflict with the way state suitability standards are interpreted, said Iowa Insurance Commissioner Doug Ommen. The two groups plan to meet to iron out those differences.

Lincoln Financial is jumping into the booming buffered variable annuity market with its first product next month.

The NAIC suitability standard has been a big success since it was adopted in 2010, two industry veterans argue. So why are state and federal regulators in a hurry to replace it with a best-interest standard that may or may not help consumers?

MetLife has a four-point plan to find annuitants after the company discovered it failed to pay nearly a half a billion dollars over decades.

New York State officials are back with a revised best-interest standard for annuities and life insurance. A 60-day comment period prompted several changes to the regulation, state officials said.

Nearly half of the inquiries from advisors for an annuity quote involved a return of premium option, according to Cannex.

The National Association of Insurance Commissioners’ second public comment period on its best-interest model law for annuity transactions yielded plenty of suggestions. Critics urged the NAIC to tread lightly and not rush the regulation.

Employees are interested in annuities and might need that guaranteed source of income as the first wave of workers lacking company pensions moves closer to retirement. A new survey reveals shifting attitudes.

Variable annuities continued a long slide in 2017, but Morningstar is finding hope in several factors this year. The downed Department of Labor fiduciary rule and rising interest rates are key.

A leading annuity expert lays out four reasons why annuity sales will be bouncing back in a big-time way in 2018 and ahead. Market conditions and reasonable regulation are the two main themes.

Jackson National is adding staff to grow its financial advisor distribution of fee-based variable annuities.

Nationwide’s move might set a precedent for other mutuals to sell exclusively in the independent channel.

Employees want to build their own pension with annuities through employers, according to a MetLife survey.

Allianz is finding traction with fixed indexed annuities in the financial advisory world with the top-selling FIA in the independent broker-dealer channel.

It’s crunch time for clients who have not yet filed their income tax returns, and some clients may be feeling the pain of seeing how much tax they are paying on their investments.

The hybrid indexes control volatility in fixed indexed annuities, but some say that FIAs inherently protect against volatility already.

Low interest rates are being blamed after multi-year guaranteed annuity (MYGA) sales fell 9.5 percent to $30.3 billion in 2017 compared to 2016. MYGA sales were strong in the fourth quarter, however.

The 350 Independent Marketing Organizations serving independent agents could shrink by 30 to 50 percent due to pressing regulation on several fronts, experts say. Many IMOs will be looking to buy or sell for the foreseeable future.

The National Association of Insurance Commissioners voted Saturday to accept more comments for 30 days on its best interest rule for annuity sales. The model law draft has drawn criticism from both sides for being both too tough and too lenient.

What if you have a client who needs to make a significant withdrawal during a bear market early in retirement? That scenario can devastate a nest egg, and avoiding it takes plenty of planning.

Total indexed annuity sales for 2017 were $53.9 billion, a decline of 7.1 percent from the year prior, according to Wink’s Sales & Market Report.

Advisors should give fixed indexed annuities (FIAs) a serious look because FIAs offer a compelling story in an era of low bond yields, according to Roger G. Ibbotson, one of the most recognizable names in finance.

Some industry observers say demographic, regulatory and technology trends have generated new momentum for many RIAs to consider offering fee-based annuities. The potential for mutual growth is high, some say.

The National Association of Insurance Commissioners’ working group discussed its controversial annuity transaction model law today with little agreement. The NAIC effort to establish a best-interest standard has been fraught with disagreement so far.

New York Life reported another successful year in 2017, with record operating earnings of $2.06 billion and a record $1.8 billion dividend payout.

The National Association of Insurance Commissioners holds a conference call today to discuss the harsh criticism it has received from all sides on its best-interest standard model law.

Appeals court sides with lower court on Department of Labor’s treatment of fixed indexed annuities in its fiduciary rule. Market Synergy Group filed one of several industry lawsuits to stop the rule, which has since been delayed.

Allianz Life’s Accumulation Advantage fixed indexed annuity (FIA) is designed to capture the appeal of advisors as they shift their FIA marketing efforts from income to accumulation.

Owners of fixed indexed annuities (FIAs) with guaranteed living income benefit (GLIB) riders are much less likely to surrender their contracts than they were 10 years ago, according to new research based on 3.3 million policyholders.

Fee-based indexed and variable annuities are still posting small sales, but the numbers are rising. A key to future sales is whether the products catch on with registered investment advisors (RIAs), analysts say.