14 ID Trends NAILBA

Latest Annuity Trends :

Over the past few years , the annuity industry has begun seeing a new trend that has seismically shifted the dynamic of annuity sales . Startups are getting into the indexed annuity market by first developing a multi-year guaranteed annuity ( MYGA ) with an aggressive credited rate , gaining distribution , and then transferring their focus over to indexed annuities . Be aware , however , that the credited rate on these MYGAs are typically higher than their nonstartup peers ’ annuities .

MYGAs are experiencing higher credited rates in general , simply because the 10-year Treasury is floating just below 4.00 %. This allows annuity product manufacturers to offer more attractive credited rates to their annuitants , in turn . Several months ago , you ’ d be lucky to find a 5-year MYGA crediting 3.00 % interest . Today , there are 5-year MYGAs crediting as much as 4.90 % interest . This is driving demand for MYGAs , and therefore increasing sales of this commoditized product , so that it has more share of the market than any other type of deferred annuity .

Sheryl Moore is President and CEO of the life and annuity market research firm — Wink , Inc . Her company provides competitive intelligence , market research , product development , consulting services and insight to select financial services companies . Email : sjm @ intelrockstar . com .

Fixed annuity sales by distribution channel

31.5 ^% Career

0 ^% Registered investment advisor

0 ^%

Direct response