Complaints about indexed annuities decreased by over 45% in 2009 compared to two years prior, according to a new study.
Advantage Compendium Ltd., St. Louis, reports that finding in a report on indexed annuity consumer complaints that were coded by the National Association of Insurance Commissioners, Kansas City, Mo.
In 2009, there was one complaint about indexed annuities for every $201 million of index annuity premium, say the researchers.
By comparison, in 2007, there was one complaint for every $109 of premium in 2007.
Among active indexed annuity carriers, index annuity-coded NAIC complaints declined significantly for the second year in a row, the researchers add.
It appears that efforts by carriers to improve product disclosures and agent training are paying off, observes Jack Marrion, president of Advantage Compendium.
“Most carriers have made a real effort to get rid of bad agents and to make their products easier to understand,” he says. “Also, it probably doesn’t hurt that the indexed annuity may have been the only asset the consumer owns that didn’t go down in value in 2009″.