Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Annuity Trends Hint At Positivity


Some interesting happenings in the annuity market could likely be a jump-start for the industry, according to Insurance News Net’s “Annuity Surprises Could Be Jump-Starters.”  Annuity sales have been slower than in the past, but some recent data hints that overall sales could be increasing soon.  The DTCC’s Insurance & Retirement Services reported a 1% increase in annuity inflows between April’s $7.4 billion and May’s $7.5 billion.  This small increase is important because the overall activity had been down in the past 13 months.  This could mean that either more companies are using the DTCC’s annuity processing service or that there have been more transactions by the companies already using it, or both.

CANNEX reports an additional 9,000 quotes for single premium income annuities between the first quarter and the second quarter of 2012.  They track financial advisors’ searches for SPIA premiums, products, and companies in the United States.  Either more advisors are seeking quotes for their clients or more quotes are being sought from the same advisors, but it looks to be positive annuity news either way.  It makes sense since Beacon Research found a 23% increase in income annuity sales between the first quarter of 2011 and the first quarter of 2012.  We’ll have to see what happens with the second quarter numbers when they come out.

The Dodd Frank Act of 2010 mandated federal agencies to define financial terms such as swaps.  We finally have completion of many definitions from the Commodities Futures Trading Association and the SEC.  Annuity and life insurance experts did not want their products to be included in the definition of swaps so that they didn’t have to follow additional rules and make changes.  As it stands now, the final rules don’t look to contain annuity and life insurance products in the definition.  It doesn’t look like anything will change in the definitions before they are implemented and the rules take effect.  We’ll continue to follow developments to the annuity industry.

Written by Rachel Summit

Follow Finance Mama on Twitter https://twitter.com/#!/financemama

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).