American International Group announced last month that they plan to sell a lot more annuities in the future. They are adding 600 advisors to help with their new focus on annuities, according to Value Walk’s Mani in the article “AIG Adding 600 Advisers In Annuities Push.” The agents will now be called the AIG Financial Network instead of American General. They currently have 1,400 agents and plan to increase that number to 2,000 in the next 5 years. AIG is one of the leading providers of insurance and financial and retirement services. American General was primarily focused on selling life insurance, but AIG Financial Network will also add a strong focus on retirement products, in particular annuities. AIG’s Chief Distribution Officer says that the company sees a demand for annuities as more Americans reach retirement age and many insurance carriers scale back their annuity sales.
The introduction of the AIG Financial Network allows more Americans to get access to the services offered by American International Group. The current and new financial advisors will focus on protecting Americans’ money during all of their life stages. There will be a multitude of retirement products as well as solutions for maintaining income, like annuities with lifetime income benefits. This new network will use AIG’s advanced technology to allow for faster processing. The Customer Relationship Management app is an innovative way for clients and advisors to communicate and speeds up many processes.
AIG’s earnings reports have been better than expected for more than a year. Companies who sold variable annuities with overly generous guarantees were really burned over the past few years in a struggling economy. Hartford and Sun Life left the variable annuity business altogether because of these losses. Prudential and some other companies cut back on many of the guarantees they had offered with their variable annuities. But AIG’s life and retirement business CEO says that they are actually in a good position to sell more annuities, including variable annuity products. They didn’t offer guarantees that turned out to be too generous and they didn’t sell as many annuities when overall guarantees were more generous. This has put AIG in a place where they are excited to sell more annuities to the aging American population to help them secure a strong financial future.
Written by Rachel Summit