NAILBA Attendance Up – And So Are The Challenges
November 13, 2019 by Steve Morelli
DALLAS – The association representing life brokerage agencies opens its annual conference’s first full day with some wind in its sails as it pushes into a challenging future.
The National Association of Independent Life Brokerage Agencies had 825 registrants as of Monday, with another 50 to 75 expected to walk in, said Dan LaBert, NAILBA’s CEO. Even without the walk-ins, this year’s registration represents a 16% increase over last year’s 711.
Sheryl Moore, an annuity and life insurance market analyst, said insurance distributors used to account for 97.4% of indexed annuity sales and 91.9% of indexed life. Now they are responsible for less than half of indexed annuity sales and about three-quarters of indexed life.
But on the positive side, she said the overall pie grew substantially over the years, with marketing organizations getting an $18 billion slice of the 2018 indexed annuity pie and $1.6 billion of indexed life.
And the hot streak for both segments has been booming. Indexed universal life sales had their best-ever quarter in 4Q 2018 at $617.4 million and have been strong this year. Moore said she expects big sales numbers this year because CSO 2017 and principles-based reporting go into effect on Jan. 1.
Indexed annuities had their best quarter in 2Q of this year, with $19.6 billion in sales, Moore said, although she warned that Fed rate cuts will make it challenging to beat this record.