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February 17, 2002 at 07:00 PM
Online Annuity Platform Had $2.1B In Sales In 2001
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AnnuityNet, Inc., Leesburg, Va., says it processed $2.1 billion in annuity transactions in 2001 and is on target to at least triple that volume by the end of this year.
Since its founding in 1997, CEO Charles Chalke boasts, AnnuityNet has become the leading online annuity sales platform linking point-of-sale distributors with companies that underwrite products.
His company already hit $500 million in sales in January alone. In contrast, as recently as 2000, the companys sales levels were “trivial,” Chalke notes.
AnnuityNet–and similar technology from companies such as Pivot.com, Charlotte, N.C.–automates the application process and information exchanges between distributor and carrier.
Chalke estimates that on-line services such as his will process $1 out of every $3 in annuity sales by the end of this year. He says producers like online annuity sales platforms for their ability to slice through paperwork-heavy application procedures and help spot and eliminate errors.
For instance, AnnuityNet can check the suitability of each sale, to help assure that the producer doesnt sell a product to a client for whom it might not be appropriate.
To use AnnuityNets suitability feature, a broker-dealer would design an online questionnaire and scoring system that its registered reps would then use when completing apps for clients.
