ID Trends Summer 2022 - Page 34

34 ID Trends NAILBA
Annuity Trends from page 32

The rise of riders

As alluded to earlier , structured annuities are still young in terms of the product life cycle . Accordingly , we are just beginning to see Guaranteed Lifetime Withdrawal Benefits ( GLWBs ) added to these annuities . These riders guarantee annual withdrawals , at a specified level , regardless of if the account value of the contract falls to zero dollars . Generally , one can say that GLWBs offer the benefits of annuitization , but with more flexibility , in exchange for an annual fee .
And when it comes to GLWBs , it seems that the indexed annuity market has largely abandoned rollups in favor of crediting fixed and / or indexed gains to the Benefit Base of the rider . Such features take advantage of comparatively less-stringent reserving requirements .
On the other hand , Guaranteed Minimum Accumulation Benefits ( GMABs ) are making a comeback , but on fixed and indexed annuities , as opposed to their variable annuity brethren . These riders typically guarantee that the account value of the annuity will grow to [ 105.00 %] of the premiums paid by the end of the surrender charge period .
All deferred annuity sales by quarter
( in millions ) $ 60,000
$ 50,000
$ 40,000
$ 30,000
$ 20,000
$ 10,000
$ 0 1Q ‘ 19
2Q ‘ 19 3Q ‘ 19 4Q ‘ 19 1Q ‘ 20 2Q ‘ 20 3Q ‘ 20 4Q ‘ 20 1Q ‘ 21 2Q ‘ 21 3Q ‘ 21 4Q ‘ 21 1Q ‘ 22
All deferred annuity sales
27.9 % Indexed annuities
31.0 % Variable annuities
. 8 %
Fixed annuities
24.4 % Multi-year annuities
15.9 % Structured annuities