The NewRiver Summary Prospectus Index is reporting “staggering” growth in use of summary prospectuses within the variable annuity market.
As of April, summary prospectuses were available for more than 29,000 sub-fund options in VAs, up from 2,509 in March, says NewRiver Inc., Andover, Mass.
A summary prospectus is a 3- or 4-page document showing key information about each VA subaccount option. It is supposed to be written in plain English and is supposed to be easier for VA owners to read and comprehend than full-length sub-fund prospectuses, which may be more than 100 pages long.
Other findings from NewRiver’s April index:
- More than 3,000 variable product contracts have at least one sub-account with a summary prospectus document.