U.S. Annuity Sales Could Reach All-Time High: Cerulli
November 21, 2022 by Michael S. Fischer
Annuity sales have been on a tear this year, largely because of the Federal Reserve interest rate hikes, which have allowed insurers to raise crediting rates on their fixed and indexed annuities, according to a new report from Cerulli Associates.
The rate environment, coupled with difficult market and economic conditions, has led many advisors and their clients to flock to annuities for safety, the report said.
Wink’s Note: Well that isn’t rocket science!
We’ve already hit nearly $62 billion in fixed annuity sales YTD 3Q2022. Of course we are going to exceed $70 billion! Sales could decline by more than 50%, and we would still exceed that!
“Cerulli cautions insurers to avoid a rate war that could negatively affect individual issuers and potentially cast the industry in a bad light.” Sorry, guys. It’s called a MYGA? Rate wars is what they’re all about. -sjm