NAIC Annuity Sales Rule Proposal Faces Showdown In Chicago

An NAIC working group is debating whether to allow insurers to illustrate indexed annuities using indices that have been around less than 10 years. Opponents say the indices would not be accurate, nor would they be understood by consumers.

Cannex researchers found that the highest guaranteed income product varies significantly depending on the client – whether a man or a woman, a single person or a couple – as well as when income begins. Advisors need to rely on real analytics, one researcher said.

American Equity Investment Life Insurance Company ®, a leading underwriter of index and fixed rate annuities, announced a new fixed index annuity product to its competitive product portfolio. ABOUT AMERICAN EQUITY American Equity Investment Life Insurance Company ® is a full-service underwriter of fixed annuity products, with a primary emphasis on the…

–Cetera Financial Group ®, a leading network of independent firms supporting the delivery of objective retail financial advice, today announced the formation of its new Board of Directors, following the firm’s selection in July of Genstar Capital as its strategic partner to accelerate Cetera’s growth and success. Three of the new Board members– Ben Brigeman,…

Broker-dealers across the country and reeling and unsure how to respond to Ohio National terminating trail commissions on some of its variable annuities. At least one leading annuity analyst does not expect the ON decision to be repeated by other insurers.

The deal allows Jackson to distribute variable and index annuities through State Farm agents beginning in the second half of next year. State Farm has 19,000 independent contractors fanned out through nearly every Main Street in towns large and small in the U.S.

Ohio National will end broker compensation on existing variable annuity contracts with guaranteed minimum income benefit riders, the company announced last week. The decision is believed to be unprecedented and could wind up in court.

In October 2016, Merrill Lynch became the first broker-dealer to announce it would eliminate commissions from IRA accounts in response to the Department of Labor’s fiduciary rule. Now the firm is reversing that decision — sort of.

Insurance companies see adding annuities to platforms such as Envestnet as vital as advisors grow more fiduciary-focused.

Any investment product can be misrepresented or sold in an unscrupulous manner. But the truth is that today’s variable annuities have a lot to offer. Used in the right way, they can provide steady income and a reassuring sense of retirement security.

Ohio National became the most recent company to learn that it takes size and scale to remain in the variable annuity business in 2018. The company said recently that it will leave the business and focus on other segments. Can VAs survive low interest rates and other pressures?

Regulatory relief and the Trump administration helped variable annuity sales reverse a long sales slide in the second quarter. However, analysts say it might be a mirage, as indexed annuities are likely to steal VA market share moving forward.

A National Association of Insurance Commissioners’ working group hopes to finalize a best-interest standard for annuity sales during a special two-day meeting next month in Chicago.

Citing more regulations and the low-interest-rate environment, Ohio National is getting out of the annuity business and laying off 300 people. The company’s departure from the market will benefit several competitors, such as Great American, AIG and Allianz, one analyst said.

Ohio National execs say regulations and low interest rates make annuities a tough sell. The company will focus on growing its life and disability insurance lines, as well as expand Latin America operations. The company recently named Christopher A. Carlson as president and CEO.

Ten years after the 2008 financial crisis, many clients are primarily worried about protecting their retirement nest egg. If they aren’t, their advisors say they are. Many have shifted toward “safer” products as they approach planning through a more balanced and holistic lens, a new survey finds.

Lincoln Financial uses IMOs to distribute many of the company’s products, such as life insurance and long-term care, and now, annuities. A deal is in place to distribute an index annuity from Lincoln to high-net-worth investors through a Georgia-based IMO.

After 17 consecutive quarters of declines, second-quarter sales of variable annuities rose – if ever so slightly – 2 percent to $25.8 billion compared with the year-ago period, according to new data. But analysts say a shift to index annuities is likely to preclude a strong rebound in VA sales.

Fixed index annuity sales topped the record set in the fourth quarter 2015 by 12 percent, according to LIMRA Secure Retirement Institute data. Growth was widespread with all of the top 10 manufacturers reporting double-digit growth from the first quarter 2018.

Sronger interest rates and fire sales among some insurance companies helped push index annuity sales to their best quarter ever, according to new data. Index annuities, which protect principal and yield limited gains tied to an external index, had been on a steady quarterly climb since the third quarter of last year.

Thirty-four percent of variable annuity owners cannot remember why they bought them, a new survey finds. But at least one analyst says that is merely a sign that VAs are very versatile, with a number of different uses, and that advisors are trusted and doing a good job.

Fixed annuity sales for the second quarter of 2018 were up 22 percent as compared to the prior quarter, and increased 20 percent as compared to the same period last year, based on preliminary sales figures reported by Wink’s Sales & Market Report.

Allianz will make its annuities available on the Envestnet Insurance Exchange, the second insurer to list its products there. Advisors at banks, broker-dealers, independent insurance agencies and registered investment advisors will be able to research Allianz annuities using the exchange, which is connected to Envestnet’s wealth management platform.

There is no limit to the number of agencies, bureaus, departments, commissioners and deputies standing ready to improve the lives of each person in ways they think they should be improved. Where does that leave annuities and the promise of guaranteed income?

Insurance commissioners are wrestling with rules that would allow insurers to illustrate indexed annuities using indices that have been around less than 10 years.

American Equity reported a healthy second quarter, but its late-May admission that it was negotiating with a potential buyer has distribution partners concerned. Meanwhile, the company plans to release new products during the third quarter.

New York and California insurance officials signal a steadfast willingness to fight for life insurance to be included in any NAIC annuity best-interest rule.

The National Association of Insurance Commissioners is attempting to come up with national annuity sales rules. Industry representatives express frustration with mixed messges and unclear rules.

A state insurance commissioners annuity subgroup will meet in Boston Saturday and attempt to reach a consensus on a controversial annuity sales model law. New York will be represented, although the state recently passed its own tougher rules in defiance of the NAIC.

The Department of Labor fiduciary rule is dead, but financial professionals selling products to retirement accounts need to be aware of new interpretations of the “five-part test” standard. DOL officials plan to be more strict in interpreting the test going forward, one industry expert says.

A new variable annuity from Sammons includes a rider making it possible for the client to receive payments before the account has been completely depleted. Company execs say it is an example of the creativity needed for VA sales to rebound.

Advisors seeking to match clients with the best annuity benefits need accurate expense-to-benefit ratio tools to help protect them in an era of regulatory pressure. For example, lifetime withdrawal riders allow retirees to receive income for the rest of their lives, but cost extra.