I hate to sound like a cranky Boomer, but I am not a fan of the widespread use of abbreviations. I understand people are short on time in this digital age (should I say post-digital now that artificial intelligence is now upon us?) and texting formats encourage brevity (think of the X platform) but I still get annoyed with references to POTUS, SCOTUS, FLOTUS and the like. Even more bothersome are the acronyms I don’t get at first glance and have to look up.

One of these, FOMO, is spelled out in this post’s title. It reflects the rampant consumerism that exists in America today (isn’t our economy mostly driven by spending?); it can push people to grab the hottest product, gadget, luxury item before stock of it runs out or it gets discontinued.

I think fear of missing out has certainly manifested itself in the annuity business. As interest rates have started to fall thanks to Fed actions, so have annuity crediting rates, and thus advisors and their clients are being urged to grab attractive deals while they can.

The other day I did a quick web search of MYGA rates on MyAnnuityStore.com and the highest 5-year crediting on offer was 5.4%; in June it was 6.3%. And representative SPIA rates posted on the CANNEX web site show a 2% to 3% drop compared to August.

And I think there’s a degree of FOMO at work in the RILA space, in that RILA buyers are looking to protect their assets but not give up on appreciation if the market is doing well.

So, the surge in annuity sales this year could at least partly be “fueled by FOMO.” Recently, an industry thought leader voiced his concerns on social media about fire sale conditions, which I think are warranted. In time things will simmer down. In the meantime, hopefully insurers can handle all the dollars coming in.