Fee-Based Annuity Sales Are Heating Up: FIDx Exec
November 27, 2024 by Allison Bell
Fiduciary Exchange LLC, known as FIDx, will soon connect six large broker-dealers to its Insurance Exchange program, Scott Bowers, the firm’s chief strategy and distribution officer, said in an interview last week.
The additions are expected to increase the insurance distribution platform’s annual transaction volume to about $10 billion, from $1 billion today, Bowers said.
Wink’s Moore on the Market: I truly admire what FIDx is trying to accomplish.
I mean- if we can get annuities in front of more financial professionals, and they embrace them, it will grow the annuity market.
However, sales of fee-based annuities dropped to 2.74% in the third quarter, 2024.
Still- that is no small chunk of a $110 billion market!
I loved this intel in this article though:
“The percentage of FIDx business coming from commission-based transactions is likely to rise because some of the broker-dealers coming on board want to put commission-based sales and fee-based transactions on the same platform,” said Scott Bowers.
Isn’t THAT interesting?!?
Scott goes on to say that “…a higher percentage of the clients coming in through registered investment advisors are adding fresh cash to the annuity market, not simply replacing old annuities with new ones.”
Plus, he indicates that the average case size for fee-based annuities is double that of commissioned contracts.
Good anecdotal information!
My thanks to Allison Bell at ThinkAdvisor for this one. -sjm
