Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Life Health > Annuities > Variable Annuities

Compensation Divides Annuity Sellers

X
Your article was successfully shared with the contacts you provided.

To expand the market for annuities, insurers have to win over fee-based financial advisors.

Researchers at Cerulli Associates, Boston, have published that conclusion in a new review of the insurance market.

Annuity sales are likely to increase 39% by 2011, to $2.6 trillion, but insurers are having a hard time selling annuities to consumers who do not already own annuities, Cerulli researchers report.

One challenge, according to results of a Cerulli advisor survey, is that only 9% of fee-based advisors frequently recommend variable annuities to clients, compared with 26% of commission-based advisors, the researchers write.

Although annuities are designed to generate retirement income, 48% of fee-based advisors will not even consider using annuities for rollovers of assets held in individual retirement accounts and other qualified retirement plans, the researchers write.

Only 19% refuse to consider use of annuities for qualified rollovers, the researchers write.


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.