Indexed Annuity Complaints Drop in Half
April 13, 2011 by Sheryl J. Moore
For anyone who thinks that indexed annuity complaints are a problem, I’ve got news for you…THEY ARE INFINITESIMAL!
I am very pleased to report that indexed annuity complaints were down yet again for 2010; by nearly 50%. See data below from the National Association of Insurance Commissioner’s Closed Complaint Database:
TOTAL INDEXED ANNUITY COMPLAINTS FOR 2006: 187
TOTAL INDEXED ANNUITY COMPLAINTS FOR 2007: 235
TOTAL INDEXED ANNUITY COMPLAINTS FOR 2008: 220
TOTAL INDEXED ANNUITY COMPLAINTS FOR 2009: 148
TOTAL INDEXED ANNUITY COMPLAINTS FOR 2010: 79
Based on our research, this results in average annual complaints as follows:
AVERAGE INDEXED ANNUITY COMPLAINTS PER COMPANY 2006: 4.35
AVERAGE INDEXED ANNUITY COMPLAINTS PER COMPANY 2007: 4.12
AVERAGE INDEXED ANNUITY COMPLAINTS PER COMPANY 2008: 3.86
AVERAGE INDEXED ANNUITY COMPLAINTS PER COMPANY 2009: 3.29
AVERAGE INDEXED ANNUITY COMPLAINTS PER COMPANY 2010: 1.93
So, not only have complaints on these products declined annually for the past four years, but the average has declined consistently for the past five years. Increased suitability and consumer-friendly products have undoubtedly resulted in the improvement in complaint ratios. And although we strive for 100% customer satisfaction in the insurance market, I would contend that an average of only 1.93 complaints per company is quite reasonable! Keep up the good work everyone and perhaps in 2011, we’ll see zero complaints! sjm