FIA Marketing Tide Shifts to Accumulation
December 27, 2017 by Cyril Tuohy
In the fixed indexed annuity market, the marketing decibels around the accumulation story are ringing, even if it’s the week before Christmas.
“Independent agents continued to shift their emphasis from guaranteed income to accumulation products focused on upside potential,” said John Matovina, CEO of American Equity Investment Life, one of the nation’s largest sellers of indexed annuities.
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Volatility Indexes Part of Conversation
Participation rates and spreads on volatility control indexes are considerably more attractive than those offered on plain vanilla indexes like the Standard & Poor’s 500 index, said Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink Inc.
GLWBs a More Complicated Sell
“People were saying I can’t sell a 4 percent cap on an indexed annuity but I can sell a 7 percent roll up on a GLWB rider, so several years ago we saw the focus switch from accumulation to income,” Moore said.