My thanks to my good friend Paul Feldman at InsuranceNewsNet for this one.
October 8, 2025 by Sheryl J. Moore
Need someone to demystify the indexed insurance marketplace for you?
I’m your huckleberry.
A couple of takeaways on this piece by Paul Feldman, Demystifying the index marketplace- with Sheryl Moore
In regard to hybrid indices-
“There aren’t a lot of indexes that have that long a history on them. And, quite frankly, the illustrative rates I’m seeing on products right now, especially those hybrid indexes, are often into the double digits, which is so interesting to me because these indexes were not developed to outperform, say, the S&P 500 Index option. They’re developed to provide more-consistent returns. Let’s just say we’re talking about the S&P 500 and you earn 6% in your first year, 0% in year two, 0% in year three. So, your overall return over that three-year period is 6% plus compounding. Well, hybrid indexes were developed to earn 2% year one, 2% year two, 2% year three. So, you still get 6%, but it’s just a more consistent return. Those are just numbers that I’m using to give people an idea, but these indexes are not performing better than the S&P 500, and they weren’t meant to.”
About the seven-letter word in the insurance industry-
“All the research that I’ve read over the past 26 years says that when you say the word “annuity,” consumers balk and get concerned and say, “I would never buy that.” But when you talk about what an annuity does — provides you a pension that you build yourself, guarantees you a paycheck for life — consumers are really interested when they hear that. I think we all need to do a better job as storytellers in this business to talk about those benefits and really make them comfortable before we say the word ”annuity.” I’m not suggesting we hide the fact that these products are annuities, but I’m saying in your presentation, talk about what they do and get the client comfortable with them before you whip out the “A” word. I think that’s one thing that would make a dramatic change in consumers’ opinions of these products and their willingness to purchase them.”
My thanks to my good friend Paul Feldman at InsuranceNewsNet for this one.
I hope you enjoy it! -sjm
SN: The Hottest Man Alive has a cameo in this one. See if you can spot him!
