Filed Under:Annuities, Suitability

NAIC Subgroup Suggests All 'Hybrid' Annuities May Need Reserve Scrutiny

Image Courtesy AP
Image Courtesy AP

A NAIC key subgroup is ready to recommend to its parent committee that contingent deferred annuities can be sold by life insurers as synthetic hybrid income annuities (SHIA.)

But the group’s chair, New Jersey’s head actuary Felix Schirripa, in the last minutes of the conference call with industry and consumer advocates, also called into question the regulatory standing of variable annuities with guaranteed lifetime withdrawal benefit (GLWB) riders, citing regulatory concerns on all guarantee products in this new market.

 

If hybrid income annuities can be sold by life insurers, then so can synthetic hybrid income annuities, he said. The majority of the subgroup agree, he said, that much of the regulatory structure is already in place.

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Nichole Morford

Nichole Morford
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