Filed Under:Annuities, Sales Strategies

New Players Enter Indexed Annuity Space

The return of the captive agent?

Photo credit: Sippakorn
Photo credit: Sippakorn

When you’re anointed the latest hot product, others will naturally take notice and want to follow your lead. So it is with indexed annuities.

According to Conning Research & Consulting, between 2005 and 2010, indexed annuities charted a 9.3 percent compound annual growth rate in the number of in-force contracts. That compares to 1.9 percent for variable annuities and 2 percent for traditional fixed annuities. Since the compound annual growth rate for the target population of likely annuity buyers grew by 2 percent during that same time period, indexed annuities grabbed the largest share of that potential sales pot.

Only time will tell if other firms will emulate Allianz’s strategy, Hawkins says. “If Allianz can prove successful at it, you would certainly expect other companies to think about it and walk through the implications for their own business.”

Yet if others imitate the Allianz model, it could have implications for others who want to enter the field. “All else being equal, it creates certain barriers to entry for those looking to expand or enter this space if they can’t get distributor shelf space,” Hawkins says.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date

Provided by LIFEHEALTHPRO

Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.