Indexed Annuity Sales To Exceed $60B In 2016
August 2, 2016 by Limra
WINDSOR, Conn., Aug. 2, 2016—LIMRA Secure Retirement Institute forecasts a 15-20 percent increase in retail indexed annuity sales in 2016, compared with 2015 results.
“For eight consecutive years, indexed annuities have enjoyed significant growth. Based on current sales trends, existing economic conditions and the imminent regulatory changes, we expect indexed annuity sales to accelerate in the second half of the year,” said Todd Giesing, assistant research director, LIMRA Secure Retirement Institute. “However we expect the sales gains attained in 2016 to be erased in 2017 when the Department of Labor (DOL) fiduciary rule goes into effect.”
Nearly two thirds of indexed annuity sales in 2015 ($34 billion) were funded through IRAs or rollovers from retirement accounts (qualified assets). Once the DOL fiduciary rule is fully implemented, financial professionals who sell indexed annuities purchased with qualified assets will need to use the BIC exemption process to prevent these sales from being considered ‘prohibited transactions’. Click HERE to read more… INN news articles may require a subscription to view
