Rhetorical Question
August 9, 2022 by Sheryl J. Moore
When it comes to pricing annuities, there are only 100 pennies in a dollar. And…
The insurance company has to make a profit.
The annuitant has to receive a fair credited rate/cap/par/spread.
The distribution expenses have to be paid for a commission to the agent, and an override to the FMO.
But what if it is a proprietary product, where a super-FMO is at the top of the food chain? Where does that extra layer of compensation come from?
Categories: Moore on the Market
