Annuity industry shifts focus as RILA sales jump in 2020
February 23, 2021 by Jason Woleben, Hailey Ross
Some insurers are getting out of what was once a robust market for variable annuities with optional living benefits riders as interest rates plummet.
Years of low interest rates have been a challenge for U.S. life insurers, but the additional rate drops during the COVID-19 pandemic made it even more difficult for companies to price guaranteed products. During the worst of the pandemic-related disruption, the 10-year Treasury benchmark fell to 0.52%. Yields have since rebounded from those levels but remain quite low.
Prudential Financial Inc., once an industry leader in variable annuities with optional living benefits riders, announced in November 2020 that it would no longer offer the product.
Click HERE to read the full story via S&P Global
Wink’s Note: RILA = Structured Annuity
