16 ID Trends NAILBA
Annuity Trends from page 15
Less liquidity
We continue to see a focus on limiting liquidity on all types of annuities . There have been a number of new products touting interest only withdrawals . Five percent penalty-free withdrawals have become the gold standard on most annuities , where 10 % penalty-frees were the standard for decades past . The first annuity to be introduced with a 0.05 % guaranteed annual return minimum recently launched . On a related note , most indexed annuities that are developed today have a guaranteed minimum interest rate of 0.05 % credited on 87.50 % of the premiums paid , for their minimum guaranteed surrender values ’ calculations . We are even starting to see some products that pay only the minimum guaranteed surrender value of the annuity , upon death . These are all just reminders that liquidity costs money . Despite the fact that product manufacturers are enjoying the benefits of better spreads , the ( lack of ) liquidity trends have persisted .
Multi-year guaranteed annuity sales
$ 25,000
$ 26,273
$ 20,000 ( in millions )
$ 15,000
$ 10,000
$ 5,000
$ 0
$ 3,936 $ 6,124 $ 5,926
$ 10,828 $ 8,814
$ 7,228 $ 6,636
$ 9,045
$ 7,915 $ 6,664 $ 6,747
$ 8,185 $ 10,341
$ 11,216 $ 12,590
$ 14,759 $ 12,461
$ 9,747 $ 9,136
$ 9,968 $ 12,524
$ 16,646
$ 13,221
$ 13,287
$ 14,434 $ 11,516 $ 11,219
$ 14,597
2015 2016 2017 2018 2019 2020 2021 2022
Multi-year guaranteed annuity sales by distribution channel
43.5 % Bank
10.6 % Independent Agent
7.6 % Career
% Registered investment advisor
0.1
% Direct response
0.1
4.1 % B / D : Independent
34 % B / D : Full service national