Corebridge Tries Unusual Tweaks to Buffers, Caps on New Annuity
September 24, 2024 by Cyril Tuohy
Having an adjustable buffer gives the insurer more flexibility, said Peter Lamond, variable annuity product director with Wink, a life and annuity market research company. Normally, a buffer doesn’t need to be adjustable because when an account term ends, changes are made to cap, participation and trigger rates. But that doesn’t work if the lock rate is fixed.
“If you can’t change that in the strategy you have to be able to change the buffer to make that adjustment if economic conditions change,” he said.
If conditions no longer allow carriers to offer as generous a buffer, the insurer is able to change it. That way, insurers don’t have to say, “we don’t have this buffer strategy anymore,” Lamond added.
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