Product changes that variable annuity providers unveiled during the third quarter was more than double that of the year-ago period, but down from the second quarter, according to new research from Morningstar U.S.A.
The Chicago-based investment research firm pegs the number of VA product changes at 106 in its third quarter report. This is up 165% from the 40 changes introduced in the third quarter of 2011, but down the 168 product changes recorded in the second quarter of this year.
“Activity this quarter was brisk,” the report states. “We are seeing a definite mix of strategies, as many carriers continue to adjust (i.e., reduce benefits levels.)
“At the same time, several new contracts came out with attractive living benefits, so product development continues and carriers are by no means sitting on their hands.”