The insurance industry isn’t exactly known for its innovation. Basically everything is just a version of something else – and for good reason, because such basic protection products as life insurance already work without having to reinvent the wheel.
One area where insurance producers can inject innovation into their practice is through creative applications of specific product types, such as using whole life insurance to plan for retirement, or exploring options for health coverage on impaired risk clients.
Now, the annuity market also appears poised to begin driving innovation in the insurance industry through the increased use of such features as guaranteed lifetime withdrawal benefits, survivor benefit riders, and other bells and whistles.
This year, our 2010 Annuity Market Study found that 38 percent of producers anticipate selling GLWBs on their annuity products in the next 12 months. In addition, 23 percent plan to market and sell income riders.
So why the sudden drive for something different?