Annuity sales falter, but clients flock to this product
June 2, 2020 by Tobias Salinger
The economic fallout from the coronavirus is tilting the annuity marketplace in favor of structured products even as overall sales falter.
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Low interest rates drew clients to structured products in the first quarter, boosting the fastest growing segment of the annuities market, Sheryl Moore, CEO of Wink, wrote in the research firm’s quarterly sales report. However, total annuity sales slipped by 4% to $52.7 billion, according to the firm.
“It is amazing that annuity sales are only down in the single digits, given the devastating effects that COVID-19 has wreaked on the annuity industry,” Moore said in a statement.
Wink’s Note: We find it very interesting how a product that is so similar to an indexed annuity is helping to push variable annuity sales forward.
When you look at structured annuities, compared to indexed annuities at the same point in the product life cycle, the products’ growth and development are nearly identical.
