Rate Increase Bodes Well For Fixed Annuity Sales
December 18, 2015 by Linda Koco
The fixed annuity industry could harvest some happiness in the months ahead. That’s because new sales of fixed annuity products will likely increase in the wake of the 0.25 percent jump in a key interest rate the Federal Reserve announced Wednesday.
The growth actually will be a continuation of the strong sales seen in third quarter, well before the Fed’s rate announcement. That’s according to Jeremy Alexander, president of Beacon Research.
Carriers have been making gradual increases in their crediting rates in traditional fixed annuities and in their cap rates in fixed index annuities for several months, Alexander explained.
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