2021: Indexed Annuities - Time to Enter?


Price : $1,750.00



Since the financial crisis of 2008-2009, indexed annuities have benefited from a market movement away from variable annuities. The number of insurers offering indexed annuities has grown, as has product complexity. In addition to increased complexity, a new type of indexed annuity, the RILA (registered index-linked annuity) has emerged and continues to gain market share. However, many insurers remain on the indexed annuity sideline. Is now the time to enter, and if so, which indexed annuity path should they follow? What should those considering entering this product line understand about the competitive landscape and product design in making that decision?



    1.     Introduction


    2.     Executive Summary


    3.     Time to Enter the Market?



  • Indexed Annuities Increase Market Share

  • Insurers Move Away from Variable Annuities

  • A Difficult Sales Environment for Pure Fixed Annuity Insurers

  • Summary


    4.     Indexed Annuities Financial Results



  • Operating Results

  • Operating Expenses

  • Separate Account Transfers and Reserves

  • Reinsurance

  • Summary


    5.     Product Landscape



  • Indexed Annuity Product Structure

  • Product Design Comparison

  • Core Competitive Product Features

  • Summary


    6.     Registered Indexed Annuities Emerge



  • RILAs

  • Competitive Landscape

  • Summary


Introduction

Since the financial crisis of 2008-2009, indexed annuities have benefited from a market movement away from variable annuities. The number of insurers offering indexed annuities has grown. That competition has increased product complexity as insurers seek to differentiate themselves in the market. In addition to increased complexity, a new type of indexed annuity, the RILA (registered index-linked annuity) has emerged and continues to gain market share.


However, many insurers remain on the indexed annuity sideline. Is now the time to enter, and if so, which indexed annuity path should they follow? What should those considering entering this product line understand about the competitive landscape and product design in making that decision?


This study reviews the competitive landscape of both traditional indexed annuities and RILAs.



  • We trace the development of the traditional indexed annuity market, including key players and premium growth.

  • We analyze the statutory financial performance of the traditional indexed annuity product line.

  • We identify key product features currently offered by traditional indexed annuity players.

  • We examine the development of the RILA market, the key players, sales growth, product features, and distribution.