The largest annuity seller, Jackson National, has teamed up with DPL Financial Partners, an insurance network for RIAs, to distribute annuity products through independent registered investment advisors. According to a recent InvestmentNews article, it’s the first time Jackson National has moved beyond traditional outlets to distribute three fee-based annuities.
“For us it is the first time we’re trying to expand our overall distribution footprint,” said Scott Romine, president of advisory solutions for Jackson National Life Distributors. “A lot of growth in fee-based [annuities] has been in the independent RIA space, so we want to position ourselves there for the growth.”
Jackson National distributes annuity products through approximately 700 bans and broker-dealers, of which 170 currently distribute its fee-based annuities. DPL distributes commission-free insurance products to about 200 RIAs, which means Jackson National will double the number of firms through which they sell fee-based annuities.
Jackson National, the largest annual seller of annuities, primarily deals in variable products with approximately 96% of the company’s $13.4 billion in sales last year coming from variable annuities. Insurers began developing more fee-based annuity products after the Department of Labor fiduciary rule was issued. The now defunct rule made fee-based rather than commision investment products more attractive from a compliance standpoint.
Annual sales of fee-based annuities are still small when compared with overall annuity sales. However, according to the Insured Retirement Institute’s state of the industry report published in December, they have seen “modest but steady growth.”
Written by Rachel Summit