Variable Annuity Change Rate Doubles

The pace of variable annuity product changes increased dramatically in the second quarter, according to analysts at Morningstar Inc.

Insurers filed 162 material changes affecting variable annuity products in the second quarter, up from 76 changes in the second quarter of 2010, the analysts at Morningstar, Chicago, say in a report distributed by the Insured Retirement Institute, Washington.

Insurers added 30 new benefits and 44 new products during the latest quarter, and they made 15 fee changes.

In the second quarter of 2010, insurers added just 7 new benefits and 8 new products.

But the number of variable annuity contracts closed also increased, rising to 33, from 12. The number of variable benefits eliminated increased to 20, from 10.