Annuity sellers need to work harder to satisfy customers, J.D. Power finds
October 29, 2024 by John Hilton
A new J.D. Power survey finds that 43% of producers fill out annuity applications for their clients. Not surprisingly, they are the buyers least likely to understand what they bought.
The majority (59%) of current annuity customers struggle with their financial health and many do not fully understand the products they are buying, concluded the J.D. Power 2024 U.S. Individual Annuity Study.
Click HERE to read the full story via INN
Wink’s Moore on the Market: “A new study from JD Power reveals that a significant portion of individual annuity customers face challenges regarding their financial health and a clear understanding of the products they are purchasing.”
Not encouraging…
“According to the 2024 US Individual Annuity Study released Thursday, 59 percent of annuity holders are struggling with their financial well-being, and many lack full comprehension of the complex financial instruments they own.”
We must do better.
“In one key finding, the study found 43 percent of customers had their applications completed entirely by their advisor, which correlated with lower overall satisfaction. The implication: those who file the paperwork without explaining anything to clients or customers aren’t doing them any favors.”
Seems feasible…
“…customers who received guidance on navigating their provider’s website or mobile app during the onboarding process were more likely to have a stronger grasp of the fees and terms associated with their annuities.”
Interesting! So, technology has the power to turn those perceptions around.
While this article is discouraging, it has some important takeaways for insurance agents selling annuities. Definitely worth the read. -sjm
