Fixed Annuity News

The fixed annuity industry is constantly changing. From product evolution and distribution consolidation to pending regulation and legislation, NAFA works diligently to keep up with every aspect of the marketplace and provide you with its most pertinent news in a timely manner. Utilize the information below to read about recent media coverage in our Monday Media Reports, access monthly advocacy updates via The Call, visit our Press Room for the association’s most current news releases or to catch up on our Twitter feed.

Industry News

Annuity Sales Are Soaring Because of Higher Payouts. What You Need to Know.
3 MARCH – Debbie Carlson – Barron’s

“Higher interest rates are making annuities of all stripes more attractive, allowing buyers a chance to protect their principal and lock in yield before payouts decline.

Sales of the insurance product hit a record in 2023 as the combination of volatile equity and bond markets and higher payouts propelled buyers to seek annuities, says Bryan Hodgens, head of LIMRA research, an industry group.”

Multi-Year Guaranteed Annuity Sales Get Back on the Rocket
5 MARCH – Allison Bell – Think Advisor

“U.S. life insurers refilled their tanks of multi-year guaranteed annuity capital in the fourth quarter of 2023.

Life insurers let sales of the products rocket up to $53 billion in the quarter, up 48% from the total recorded in the fourth quarter of 2022, after increasing just 13% in the third quarter of 2023, according to a new issuer survey compiled by Wink.”

Hurt by inflation, Americans yearn for pensions in retirement. One answer may be annuities.
5 MARCH – Medora Lee – USA Today

“Inflation continues to ravage Americans’ savings, making them nostalgic for a retirement benefit of yesteryear: the pension.

Ninety percent of Americans saving in a company retirement plan, such as a 401(k), worry it doesn’t provide a reliable stream of income that can withstand the financial strains posed by inflation, which hit a 40-year high in 2022, according to a survey of 1,003 plan participants last fall by Greenwald Research. Seventy-six percent, up six percentage points from a year ago, worry they’ll run out of money, and 83% now want guaranteed lifetime income, the poll by the independent researcher said.”

Annuity sales set more records in Q4, break $100B, Wink reports
6 MARCH – John Hilton – Insurance News Net

“Annuity sales smashed through the $100 billion barrier in the fourth quarter, Wink, Inc. reported today, setting more records along the way.

Total Q4 sales for all deferred annuities were $105.4 billion, up 33.1% compared to the previous quarter and up 32.9% compared to the same period last year. All deferred annuities include the variable annuity, structured annuity, indexed annuity, traditional fixed annuity, and multi-year guaranteed annuity (MYGA) product lines. “

Annuity Rates in California
7 MARCH – Jennifer Schell – Annuity.Org

“According to the state’s insurance department, California is the largest insurance market in the country and the fourth-largest insurance market in the world. The state is considered a prime market for annuity prospects because the demographic most likely to purchase annuities – residents aged 45 to 64 with over $100,000 in household income – make up 18.2% of California’s total population.”

DOL Sends Final Fiduciary Rule to OMB
8 MARCH – Groom Law – Groom Law Group

“On March 8, 2024, the Department of Labor (“DOL”) sent a final version of the Retirement Security Rule: Definition of an Investment Advice Fiduciary (the “Fiduciary Rule”) to the Office of Management and Budget (“OMB”) for review.  OMB review is typically the final stage of the regulatory process before the publication of a final rule and can take anywhere from a few days to several months.  Assuming a normal review process, we would expect the Fiduciary Rule to be released by the end of May.  The text of the Fiduciary Rule will not be publicly available until it is released by DOL or published in the Federal Register.”

Want to retire happy from an advisory career? Start planning now
15 MARCH – Robert Goff – Investment News

“65 percent of financial advisors surveyed said simply identifying a successor was key to creating a succession plan.”

States to Send New CEO Into Annuity Sales Standards Fight
18 MARCH – Allison Bell – Think Advisor

“The National Association of Insurance Commissioners has named Gary Anderson to be its new chief executive officer.

Anderson will take over as CEO May 1, after his term as Massachusetts’ insurance commissioner ends, NAIC officials announced Saturday in Phoenix, at the group’s spring national meeting.”

Annuity Owners Report Product Satisfaction, Positive Buying Experience
18 MARCH – Staff – PR.Com

“In a time of so much economic and financial uncertainty, 92% of fixed rate annuity owners and 100% of fixed indexed annuity owners agree that it is important their annuity cannot lose value for as long as they own the product, according to NAFA’s newly published Survey of Fixed Annuity Owners.”

Annuity Owners Show What They’re Really Thinking
22 MARCH – Allison Bell – Think Advisor

“Most owners of nonvariable annuities like them, according to new survey results.

The National Association for Fixed Annuities hired Greenwald Research, an independent polling firm, to conduct the survey. The sample included 404 U.S. residents ages 50 and older who own a traditional fixed rate annuity or a nonvariable indexed annuity.”

Monday Media Report

Monday Media Report

The NAFA Media Report features a summary of the previous week’s fixed annuity media coverage. NAFA welcomes your contributions and suggested additions.

Access the most current report »

The Call

The Call

The Call features timely and seasonal regulatory and legislative updates to help NAFA members stay on top of issues impacting their businesses. Both federal and state editions are distributed to keep you informed.

Access the most current update »

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