‘Re-Regulation’ Could Dampen Annuity Sales: Credit Suisse
January 8, 2019 by Elizabeth Festa
While deregulation boosted annuity sales in 2018 and may lift long-term defined contribution sales, “re-regulation” of annuities via the Securities and Exchange Commission advice rules along with state fiduciary rules and an anticipated National Association of Insurance Commissioners’ annuity sales suitability framework could dampen VA sales, Credit Suisse analysts predict.
Despite some regulatory pressure and equity market sensitivity, an increased focus on retirement products could be beneficial for life insurers’ asset portfolios if it leads to more access to these products, according to a new Credit Suisse Report, titled “Life Does Not Appear To Be Dead.”
“Shifting regulation has driven strong annuity sales in 2018 year-to-date and could further boost retirement products and assets longer-term,” stated the report, released Wednesday and written by life insurance equity analysts led by Andrew Kligerman.
While the vacated Labor Department fiduciary standard is likely to boost long-term sales of defined contribution products, according to the sector forecast, the analysts see headwinds from equity market volatility and from potential regulation.
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