2018 Fixed Index Annuity Volatility Control Indices Overview Available
January 9, 2018 by ADVANTAGE COMPENDIUM, LTD.
MCKINNEY, TX – January 9, 2018 – From a couple dozen two years ago there are now over fifty volatility control indices being offered in today’s fixed index annuities (FIAs), according to a new digest from Advantage Compendium, Ltd. Notable vol-control index changes:
While only 27% of early FIA vol-controlled indices were excess return based – meaning the yield of a predetermined interest benchmark is first deducted from any index gains – the majority of the new indices used an excess return calculation.
The complexity of volatility index components has generally increased.
For calendar year 2017 the average return for vol-controlled indices used in FIAs, before spreads, was 12.6%. Net credited vol-control index interest was generally in the 7% to 9% range, but many FIAs with vol-control indices credited double digit interest in the mid-teens.
The rapid growth in these offerings means plenty of choice is available to consumers. But it also means that fixed index annuity specialists need to stay on top of an ever-expanding and evolving vol-control index universe to remain competitive.
The 21-page 2018 Fixed Index Annuity Volatility Control Indices Overview provides annuity experts with the detailed information they need on the wide array of volatility control indices now available in the fixed index annuity market. “The 2018 digest provides side-by-side comparisons of each volatility control index sorted by index features, volatility trigger level, pricing points and strategy, and it provides a brief description of what these features do,” says Dr. Jack Marrion, CEO, “Unless you dig deeply into the details, you would never know how different they are.”
The findings are valuable for those who develop volatility control indices for fixed indexed annuities as well as for those who distribute annuity products containing the indices. “The reality is that volatility control indices generally are complicated,” Marrion explains. “Fixed index annuity professionals need to stay abreast of the competition—and the innovations.”
The 2018 Report
A pdf version of the 2018 Fixed Index Annuity Volatility Control Indices Overview is available for $175 at https://advantagecompendium.com/store/ and is already available for download to current volcontrol.com web subscribers at no additional charge.
ADVANTAGE COMPENDIUM, LTD. provides research and consulting services. The firm is led by veteran annuity researcher Jack Marrion. Neither Dr. Marrion nor Advantage Compendium sell or endorse any financial product.
Wink’s Note: Moore Market Intelligence clients contact Sheryl J. Moore at sheryljmoore.com directly for your exclusive hybrid indices research.
