The 10 highest-growth cities for annuities in 2016

U.S. annuity market potential growth — a prospective, forward-looking measure for a product or need that has an analytical basis — stands at 3 percent. Seventy-eight of the top 100 annuity market cities in the U.S. grew at a higher rate, while 22 showed declines. As a group, the top 100 city markets grew 13.6 percent — 4.5 times the overall rate.  

We asked Information Asset Partners (IAP), a firm specializing in predictive analytic data for the insurance and investment industries, to provide a look at the 2016 annuity market for cities, both the largest and the fastest growing. IAP uses recent annuity buying data for variable annuities, fixed index annuities and fixed annuities across all manufacturers and distributors to develop bottom-up predictive analytics that enable marketers to assess market potential and growth, and target prospects online and offline.

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Among the top 10 highest growth annuity markets, only two had potential of more than 5,000 households; the remaining eight cities have smaller 2013 bases, and the 2015 annuity model found greater than 50 percent growth rates. Among the 10 largest annuity market cities, New York City and Chicago showed single-digit declines and the rest showed 15 – 50 percent growth.

“The annuity market metric is based on the financial decision making unit — the household — and their contract buying from today’s distribution,” said IAP’s Bill Poll. ”When you look inside all cities, the growth is concentrated in about 3,000 ZIP codes that represent more than 40 percent of the annuity market. These high concentrations of market potential and growth indicate that annuities have a broader market than 2.8 million households. IAP’s new metric determined that 14.7 million households have guaranteed income as their primary financial objective. Even with the DOL ruling’s challenges, there’s higher potential for the products.”

IAP’s ranking of the top 10 highest growth annuity market cities within the top 100 presents additional information that adds further insights including:

Continue reading to see annuity market potential rankings and key dynamics for the 10 highest-growth annuity markets for 2016.

Dallas is the only top 10 annuity potential growth market that also ranked in the top 10 largest annuity market cities. 

10. Dallas

2014-15 annuity market rank: 5

2012-13 annuity market rank: 8

Guaranteed income goal households rank: 8

Digital investment/retirement buying index: 119

Digital insurance buying index: 153

High annuity potential ZIP code: 75243

Cleveland has high growth market potential, but low digital engagement. (Photo: Chris Gent/Wikimedia Commons)

9. Cleveland

2014-15 annuity market rank: 55

2012-13 annuity market rank: 77

Guaranteed income goal households rank: 59 

Digital investment/retirement buying index: 40

Digital insurance buying index: 47

High annuity potential ZIP code: 44102

Tulsa has high growth and low-trending digital engagement. (Photo:Wikipedia Commons)

8. Tulsa, Oklahoma

2014-15 annuity market rank: 39

2012-13 annuity market rank: 51

Guaranteed income goal households rank: 53

Digital investment/retirement buying index: 90

Digital insurance buying index: 80

High annuity potential ZIP code: 74105

El Paso has high annuity growth potential and low-trending digital engagement. (Photo: LC Rogers/Wikimedia Commons)

7. El Paso, Texas

2014-15 annuity market rank: 50

2012-13 annuity market rank: 68

Guaranteed income goal households rank: 36

Digital investment/retirement buying index: 69

Digital insurance buying index: 70

High annuity potential ZIP code: 79912

Portland has high annuity growth but only average digital engagement for retirement products.

6. Portland, Oregon

2014-15 annuity market rank: 21

2012-13 annuity market rank: 40