The end of the monthly sum?
January 4, 2023 by Sheryl J. Moore
I’ve been wondering how long it would take for insurance companies to start retiring their monthly point-to-point indexing methods.
MassMutual Ascend recently took this action on one of their indexed annuities.
The indexing method, also known as “monthly sum,” used to account 40.50% of all indexed annuity sales in 2005.
However, the most recent “Wink’s Sales & Market Report” shows monthly point-to-point allocations at a mere 1.6% of sales today.
Hedging for indexing methods that don’t get a decent amount of allocations is inefficient. I would look for others to follow MassMutual Ascend’s suit in the coming year.