Indexed annuity illustrations are hurting consumers: group
June 11, 2019 by Greg Iacurci
An investor advocacy group took a shot at indexed-annuity illustrations — the primary sales tool used to sell insurance products — and said that current rules around illustrations are too flimsy, allowing insurers to use them in a way that benefits them but disadvantages consumers.
“Development of hybrid indices is the single-biggest driver of new product development in the indexed annuity market,” Ms. Moore said. “When regulators propose potentially decimating a $24 billion annual market, it certainly gets the attention of insurance companies, investment banks and other stakeholders.”