Testing the Market for Fee-Based FIAs
July 18, 2017 by Cyril Tuohy
With new fiduciary standards taking effect, carriers have lined up new fee-based fixed indexed annuities (FIAs) for independent marketing organizations and their advisors to sell.
Insurance companies said they want to be prepared for the June 9 implementation date of the Department of Labor’s fiduciary rule, which is designed to steer distributors away from commission-based sales.
But independent agents and advisors, who have sold billions of dollars’ worth of fixed indexed annuities in the past 10 years, rarely get excited about fee-based annuities.
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“It’s a little too early to tell if fee-based indexed annuities will experience successful sales levels,” said Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink, publisher of the indexed life and annuity industry tracker Wink’s Sales & Market Report.
“I definitely think that the outcome of the DOL’s proposed fiduciary rule has the power to influence sales of these products going forward,” she said.
