Regulatory concerns and competition from manufacturers of other products could hurt equity-indexed annuity sales this year.
The insurance research analysts at Fox-Pitt, Kelton, New York, present that argument in a research note discussing near-term prospects for a life insurer in the EIA market.
EIA sales have grown dramatically in recent years and probably will improve the sellers’ profit margins over the next few years, the analysts write.
But one source of EIAs’ appeal has been the fact that many regulators treat them as insurance products rather than as securities.