Insurers Using RILAs to Shift From Risky Guaranteed Living Benefits: Cerulli
February 1, 2022 by Melanie Waddell
Sales of registered index-linked annuities are rising, and more insurers are replacing traditional variable annuities that offer living benefits with the products, according to Cerulli Associates.
“Insurers indicate that they are using the RILA to pivot away from risky guaranteed living benefits,” states Donnie Ethier, the head of Cerulli Associates’ Wealth Management practice. “Because the client is willing to assume some investment risk, insurers are able to offer more attractive index caps on RILAs than on fixed-income annuities.”
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Wink’s note: PLEASE do not call them “Registered Index-Linked Annuities” or “RILAs,” folks. The regulators don’t understand our products. We certainly don’t need additional confusion between insurance and securities products. – sjm
