Variable annuity issuers should use different branding strategies for different marketing channels.[@@]
Hugh McHaffie, a senior vice president at MetLife Inc., New York, delivered that message here earlier this week at the annual meeting of the National Association for Variable Annuities, Reston, Va.
Selling through multiple channels is a good way for an insurer to mitigate risk, McHaffie said.
But selling through multiple channels can be complicated because, in many cases, channels will differ in terms of factors such as average contract size, persistency, share class structure, and yields and liquidity on fixed accounts, McHaffie said.
McHaffie pointed out that pricing factors also vary by distribution channel. Although distribution expenses may be similar for the career and independent system, average deposits tend to be lower in the career system and persistency tends to be higher, McHaffie said.