Broker-dealers could see higher share of fixed indexed annuity sales thanks to DOL fiduciary rule
May 6, 2016 by Greg Iacurci
The sale of fixed indexed annuities through independent insurance agents, by far the largest source of FIA distribution, is likely to take a hard hit as a result of the Labor Department’s fiduciary rule, and some believe insurers may lean more on other channels such as broker-dealers and banks in this eventuality.
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Around six in 10 indexed annuities sold in the fourth quarter of 2015 were via independent agents, with the majority of that percentage via qualified retirement accounts, according to Wink Inc., a market research firm that tracks fixed indexed annuity data.
One potential effect is an attempt to grow distribution through banks and broker-dealers, Mr. Schwartz said. Banks represented nearly 17% of sales in the fourth quarter last year, and independent broker-dealers had a 13.5% share, according to Wink.
