Today is not only the official start of summer it’s also Father’s Day, and I hope you all are enjoying the longest day of the year and giving deserved tribute to all the dads out there.
Are their brighter days ahead for the annuity industry? I think so. Lately my thoughts have turned to fixed-indexed annuities, and tomorrow’s issue of my report will cover what I found in digging through FIA news and filings. In a nutshell, I found that side of the business to be crackling with activity, despite a major drop in sales last year, due to a toxic combination of the COVID-19 pandemic and historically low interest rates. This derailed several years of indexed annuity momentum.
I suspect that FIA carriers are coming up with fresh ideas to compete with their peers and other annuity types, and to prepare for an eventual rebound in interest rates, which, I suspect, will bring sales back with a vengeance.
Rising rates and relief from COVID-19 related economic restraints should help all annuity types. What the industry will need to watch out for, however, is the possibility of repeating mistakes of the past – which often arose when times were the sunniest.