More than half of financial professionals
expect double digit growth of indexed annuities sales
According to a recent survey conducted by Saybrus Partners,
Inc., a vast majority of financial
professionals (83%) expect an increase in indexed annuities sales
in the next 12 months. Also, of those polled, more than half (52%)
expect sales growth of more than 10% in the next year. The survey
polled financial professionals at the 2016 BISA Annual Convention
held in Hollywood, Florida, March 17-18, 2016.
Saybrus’ survey findings mirror industry data recently released
by LIMRA Secure Retirement Institute, which reported 13% growth in
fixed indexed annuity (FIA) sales in 2015 to a record high of $54.4
billion.
“Products with inexpensive fee structures and flexible benefits,
like indexed annuities, are surfacing as a more attractive option
for advisors to recommend to clients,” said Ed Friderici, managing
director for Saybrus Partners. “Given the strong consumer value
afforded by these offerings, we are not surprised that our survey
respondents reported both strong recent growth and high
expectations for indexed annuities sales in the next year.”
When respondents were asked what product type has grown the most
by sales volume in the past year, 43% cited indexed annuities and
20% cited life insurance, compared to managed accounts (16%),
advisory services/actively managed portfolios (11%), variable
annuities (7%), and mutual funds (2%).
Additionally, according to the LIMRA Secure Retirement
Institute, banks were among the fastest growing channels for FIAs,
with a 30% increase in sales in 2015.
Friderici continued, “With the recent growth in the bank
channels, there is an even greater opportunity to educate financial
advisors. As product variations continue to emerge and market
conditions change, bank channel advisors need to be familiar with
all types of products and riders to ensure they are having
meaningful conversations with clients and can address various types
of retirement needs.”
Index Annuities Are Favored During a Downturn
The survey found that over half of financial professionals (54%)
think indexed annuities are the most important product to offer
clients in a correction or bear market, far more than advisory
services/actively managed portfolios (16%), life insurance (12%),
variable annuities (8%), managed accounts (7%) and mutual funds
(2%).
“It’s essential to recommend products that offer both potential
for upside as well as principal protection in any market
conditions,” said Friderici. “While clients’ portfolios may do well
in a favorable economic environment, having diverse products that
include protection against losses, income guarantees and enhanced
benefits for extended care provide clients with confidence that
they will be adequately prepared to address key retirement risks no
matter how long they live or how the market is performing.”
Closing the Sale
When financial professionals were asked what things could
enhance sales growth of indexed annuities at their organization,
almost a fifth (19%) said “better point-of-sale support.” Other
responses included multi-solution products (17%), better technology
(16%) better carrier education (15%) and better wholesaling support
(15%).
“This data indicates that financial professionals are mostly
satisfied with the indexed annuities available in the marketplace
but are looking for enhanced sales support, whether behind the
scenes or directly with clients. We know this to be particularly
true for advisors who are new to indexed annuities,” said
Friderici.
When looking at utilization rates of riders on indexed annuities
which, according to LIMRA Secure Retirement Institute, are
dramatically lower in banks versus other channels, the survey found
that over one third (37%) of financial professionals said that
increasing wholesaler/advisor education on rider benefits would
raise utilization rates. Other options included: decrease fees on
riders (18%), point-of-sale support (16%), client focused awareness
campaigns (13%) and better illustrative tools (13%).
“Indexed annuities clearly have a strong value proposition for
today’s retirees or soon-to-be retirees, and advisors have an
opportunity to address multiple needs by expanding the conversation
with consumers. ” said Friderici. “The good news is that today’s
offerings continue to evolve and can provide a full range of
benefits with one product, including accumulation and protection
for income, family and personal care. This can be particularly
meaningful for clients who may not have the financial wherewithal
to effectively address their needs with multiple offerings.”
NOTES TO EDITORS
The survey of 104 financial professionals, including bank
executives/program managers, professionals affiliated with an
insurance company, professionals affiliated with an independent
broker/dealer, registered investment advisors (RIAs), bank
financial advisors and professionals affiliated with a national
wirehouse, was conducted by Saybrus Partners at the 2016 BISA
Annual Convention held in Hollywood, Florida, March 17-18. LIMRA
Secure Retirement Institute data is quoted with permission from
their “Quarterly Sales Survey.” copyright 2015.
ABOUT SAYBRUS PARTNERS
Saybrus Partners, Inc. is an insurance partnership firm that
helps financial professionals address clients' needs with insurance
solutions for basic protection as well as income, estate, and
business planning. Its partner firms include institutional
financial advisories, insurance retailers, banks and
broker/dealers. With customized services to best fit its partners'
businesses, its capabilities range from traditional wholesaling to
consultation with client meeting support.
Saybrus Partners is a subsidiary of The Phoenix Companies, Inc.
(NYSE: PNX) with corporate headquarters in Hartford, Connecticut
and consulting representatives located across the United States.
Saybrus does not provide tax or legal advice. In California dba
Saybrus Partners Insurance Agency, CA license #0G81229. Saybrus
Partners is an insurance agency affiliate of Saybrus Equity
Services, Inc., Member FINRA.
BPD 39461
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160406005866/en/
Prosek PartnersGabrielle Simon,
203-254-1300 x108gsimon@prosek.comorSaybrus
Partners/PhoenixAlice S. Ericson,
860-403-5946alice.ericson@phoenixwm.com
Phoenix (NYSE:PNX)
Graphique Historique de l'Action
De Oct 2024 à Nov 2024
Phoenix (NYSE:PNX)
Graphique Historique de l'Action
De Nov 2023 à Nov 2024
