The health of the FIA market is perhaps best judged by those who sell more product. On this score, the trend is clear: The higher the overall annuity production (all product types) among respondents polled in the survey, the more likely that advisors were to say that FIA sales increased “somewhat” or “substantially” over the year prior.
Thus, 33 percent of advisors who sold between $250,000 and $1 million in premium experienced an increase in FIA sales; and more than 1 in 10 (11 percent) saw a “substantial increase.” In comparison, close to half of advisors (45 percent) whose annuity premiums topped $1 million enjoyed a rise in FIA production last year, and 14 percent saw a substantial rise (Figure 2).
Perhaps not unexpectedly, a higher proportion of insurance-oriented advisors than investment advisors saw gains in FIA sales: 31 percent versus 24 percent, respectively. Among those citing substantial increases, the insurance-oriented producers again were more highly represented: 10 percent versus 8 percent.
As to advisors polled who cited a modest or substantial decline in FIA production last year, those whose premiums were below $250,000 constituted the largest group at 18 percent. In contrast, fewer advisors whose premium levels exceeded $250,000 and $1 million cited declines in FIA production: 12 percent and 7 percent, respectively.