More than 80 percent of financial professionals expect an increase in indexed annuities sales in the next 12 months. More than half of those polled expected sales to increase by over 10 percent.
The survey findings, by Hartford-based Saybrus Partners, an insurance partnership firm, mirror industry data recently released by Windsor’s LIMRA Secure Retirement Institute, which reported 13 percent growth in fixed indexed annuity (FIA) sales in 2015 to a record high of $54.4 billion.
Products with inexpensive fee structures and flexible benefits, like indexed annuities, are surfacing as a more attractive option for advisors to recommend to clients, according to Ed Friderici, managing director for Saybrus Partners.
When respondents were asked what product type has grown the most by sales volume in the past year, 43 percent cited indexed annuities and 20 percent cited life insurance, compared to managed accounts (16 percent), advisory services/actively managed portfolios (11 percent), variable annuities (7 percent), and mutual funds (2 percent).
The survey also determined over half of financial professionals (54 percent) think indexed annuities are the most important product to offer clients in a correction or bear market, far more than advisory services/actively managed portfolios (16 percent), life insurance (12 percent), variable annuities (8 percent), managed accounts (7 percent) and mutual funds (2 percent).
The survey polled financial professionals at the 2016 BISA Annual Convention held in Hollywood, Florida, March 17-18, 2016.
