Fixed indexed annuities and structured annuities will see their sales rise over the next few years.
That’s according to the latest research from Cerulli Associates in its latest report, U.S. Annuity Markets 2018: Remaining Well Capitalized and Adaptive. While just 22% of surveyed carriers offer structured products, the report adds, they could find new growth in such offerings.
According to Cerulli, FIAs will make up 40% of total annuity production by 2023; the report adds that such growth means it’s likely that by the end of 2021 they’ll outpace sales of traditional variable annuities.
FIAs, especially as insurers continue to develop and enhance them, are seen as providing advantages in almost any market environment. If interest rates rise, for instance, insurers can raise crediting rates; if rates are low, clients can focus more on index strategies, knowing they have downside protection.