Annuities

  • Social Distancing Measures Challenge Advisors’ Practices
    Social Distancing Measures Challenge Advisors’ Practices

    How our ‘high-touch’ industry grapples with the new reality of contact

    Not being able to meet in person with their clients during the pandemic ranks as the biggest impact for 9 in 10 advisors according to a recent study. Market factors including low interest rates and increased market volatility have also been disruptive to advisors’ practices.
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  • How The Life & Annuity Industry Has Been Remade by COVID-19
    How The Life & Annuity Industry Has Been Remade by COVID-19

    Scenarios for resilient leaders

    In the wake of COVID-19, Deloitte and Salesforce hosted a dialogue among renowned scenario thinkers to consider the potential societal and business impact of the pandemic. What this illuminated was that insurers must prepare for the future, but uncertainties make it difficult to predict. These scenarios explore how the life insurance and annuities (L&A) industry…
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  • U.S. Insurers’ Private Equity Holdings Continue to Climb
    U.S. Insurers’ Private Equity Holdings Continue to Climb

    Continued low interest rates, strong but cash-strapped businesses create opportunities

    U.S. insurance companies for a fourth-straight year increased their private equity holdings—by nearly 10% in 2019 to $81.3 billion—as this asset class remains attractive to insurers looking to diversify their investment portfolios or increase returns in the low interest rate environment, according to a new AM Best special report.
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  • Consumers Concerned About Tax Changes Impacting Their Retirement Income
    Consumers Concerned About Tax Changes Impacting Their Retirement Income

    Tax changes are causing Americans concern, however very few are doing anything about it

    Tax changes are causing Americans concern, however very few are doing anything about it New research from Lincoln Financial reveals that it’s not all about filing taxes on time RADNOR, Pa., June 26, 2020 – With this year’s new tax deadline (July 15) quickly approaching, Americans are concerned about taxes but it’s not about filing…
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  • Secure Retirement Institute Forecasts Rebound for Most Annuity Products by 2021
    Secure Retirement Institute Forecasts Rebound for Most Annuity Products by 2021

    Secure Retirement Institute is forecasting brighter future for annuity sales

    The Secure Retirement Institute® (SRITM) is forecasting U.S. annuity sales will struggle in 2020. The COVID-19 pandemic triggered ultra-low interest rates, extreme market volatility and record-high unemployment — conditions that generally are unfavorable for annuity sales. Overall, SRI is forecasting total annuity sales to drop between 8-15% in 2020.
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  • U.S. Life/Annuity Industry Records 34% Rise in Pre-Tax Operating Earnings in 2019
    U.S. Life/Annuity Industry Records 34% Rise in Pre-Tax Operating Earnings in 2019

    Decline in transaction-driven volatility and favorable equity markets

    The U.S. life/annuity (L/A) insurance industry saw pre-tax operating income rise by 34% in 2019 to $63.4 billion, driven by a decline in transaction-driven volatility compared with previous years and favorable equity markets for the year, according to a new AM Best report.
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  • U.S. Life Quarterly: May 2020
    U.S. Life Quarterly: May 2020

    How has COVID-19 impacted the bottom line for life and annuity sales?

    The deep recession caused by COVID-19, low interest rates, surging unemployment and financial market volatility will weaken life insurance premium growth in 2020. New sales of life insurance and annuity products is negatively affected by social distancing as agents are not able to meet new prospects and clients. Potential downgrades and possible defaults on fixed…
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  • Double-Digit Increase for Registered Index-Linked Annuity Sales in 2020
    Double-Digit Increase for Registered Index-Linked Annuity Sales in 2020

    FIA sales expected to drop more than 20% in 2020

    Registered index-linked annuity (RILA) sales were $4.9 billion in the first quarter 2020, up 38% from the prior year results, according to final results from the Secure Retirement Institute® (SRITM) U.S. Individual Annuity Sales Survey. “Current market conditions favor RILA products more than fixed indexed annuities (FIA) as the increase in market volatility will help…
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  • Avenues To Reopening
    Avenues To Reopening

    Insurance Companies Making Changes to New Business in Light of COVID-19

    LIMRA worked with the Society of Actuaries and Oliver Wyman to conduct a series of short surveys on the COVID-19 pandemic and its potential effects on the insurance industry. The COVID-19 pandemic has resulted in social-distancing practices and volatile market conditions that have caused disruptions in many life insurance companies’ processes. About 90% of the…
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  • Consistent 401(k) Participation Leads to Higher Account Balances
    Consistent 401(k) Participation Leads to Higher Account Balances

    What Does Consistent Participation in 401(k) Plans Generate?

    The average 401(k) plan account balance of “consistent 401(k) participants” — those who remained active in the same 401(k) plans from year-end 2010 through year-end 2016 — more than doubled in that period, according to new data published today by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI).
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