Tough Lessons Fuel the Rise of Hybrid Variable Annuities

October 10, 2017 by Cyril Tuohy

Life and annuity insurers, with memories still fresh about promises they struggled to keep, don’t want to make the same mistakes twice.

More than a decade ago, insurers sold variable annuities with generous promises policyholders couldn’t refuse.

But when interest rates collapsed after the financial crisis, companies were on the hook for contracts paying 8 percent, often more, in a plummeting rate environment.

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Originally Posted at InsuranceNewsNet on October 6, 2017 by Cyril Tuohy.