Annuity confusion crimps customer satisfaction, finds JD Power
October 23, 2024 by Leo Alamazora
A new study from JD Power reveals that a significant portion of individual annuity customers face challenges regarding their financial health and a clear understanding of the products they are purchasing.
Click HERE to read the full story via InvestmentNews
Wink’s Moore on the Market: “A new study from JD Power reveals that a significant portion of individual annuity customers face challenges regarding their financial health and a clear understanding of the products they are purchasing.”
Not encouraging…
“According to the 2024 US Individual Annuity Study released Thursday, 59 percent of annuity holders are struggling with their financial well-being, and many lack full comprehension of the complex financial instruments they own.”
We must do better.
“In one key finding, the study found 43 percent of customers had their applications completed entirely by their advisor, which correlated with lower overall satisfaction. The implication: those who file the paperwork without explaining anything to clients or customers aren’t doing them any favors.”
Seems feasible…
“…customers who received guidance on navigating their provider’s website or mobile app during the onboarding process were more likely to have a stronger grasp of the fees and terms associated with their annuities.”
Interesting! So, technology has the power to turn those perceptions around.
While this article is discouraging, it has some important takeaways for insurance agents selling annuities. Definitely worth the read. -sjm