Unlike life insurance product development , the annuity market always seems to have something going on . New features and different riders come and go . The array of available options seems to be endless . Here , we lay out some of the latest trends in annuity product development .
With interest rates being as low as they are , fixed annuities are relatively difficult to market . This has resulted in a couple of fixed annuity underwriters developing indexed “ kickers ” on their fixed annuities . Also , many indexed annuities have developed “ buyup ” caps and participation rates . This works similar to traditional indexed crediting , but the client pays an explicit annual fee of
[ 1.00 %], in exchange for relatively higher caps and participation rates than an indexing method with no fees .
Meanwhile , structured annuities are developing new ways of offering indexed interest . Because of the product immaturity in these 10-year-old products , we are still seeing new indexing methods being introduced ; new indices being developed , and even new ways of limiting the indexed interest being utilized .