As Rates Rise, Innovation and Changes Sweep Through Annuities

March 8, 2023 by Cyril Tuohy

Higher rates aren’t the whole picture though, said Sheryl Moore, CEO of Wink, publisher of Wink’s Sales & Market Report. They do generally mean better yields on general accounts from which carriers earn a profit.

But she noted that you also have to consider the cost of options, such as on the S&P 500, that are used to hedge against losses and provide upside gains on products. What determines those costs are primarily the market’s performance and volatility, she said.

Innovations with income riders and other features take place regardless of the interest rate environment, Moore added.

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Originally Posted at Life Annuity Specialist on March 1, 2023 by Cyril Tuohy.