Analysts: EIA Commissions Will Continue To Fall

Competition from bank certificates of deposit and variable annuities may be tempting consumers away from equity-indexed annuities.

Analysts at Fox-Pitt, Kelton, New York, have included that suggestion in a new research note.

Sales of annuities with returns linked to the performance of stock indexes and other investment indexes have grown rapidly in recent years, but sales seem to have slowed this year, the analysts write in the note.

Scrutiny from regulators and rating agencies may be responsible for some of the slowdown, but other factors may be the narrowing of the difference between long-term interest rates and short-term rates, the analysts write.