3 Things to Know About the NAIC’s New 0% Annuity Floor Project
July 7, 2020 by Allison Bell
State insurance regulators are thinking about starting an annuity regulatory project that could remind everyone how hard it is for life insurers to offer great guarantees at a time when safe “single A” corporate bonds are offering an effective yield of less than 1.8%, and slightly edgy BBB bonds are paying 1.97%.
The National Association of Insurance Commissioners (NAIC) is deciding whether to start model law development project to reduce the standard minimum nonforfeiture interest rate for individual deferred annuities to 0%, from 1%.
- Links to NAIC Life Insurance and Annuities Committee documents are available here.
- An earlier article about annuity income guarantees is available here.