Two life insurance company leaders told an audience full of money managers that the world needs annuities, and that the life industry needs to do better job of explaining how important and necessary annuities are.
Mark Mullin, the chief executive officer of Transamerica Corp., and Mark Pearson, the CEO of AXA Equitable Holdings Inc., talked about society’s need for annuities Thursday, in New York, at an insurance conference organized by S&P Gobal Ratings.
The conference brought insurance company financial executives together with the investment bankers and other professional advisors that help insurers get financing.
In the United States, the baby boomers are now starting to draw on their 401(k) plan assets, and they need help with income planning, Mullin said, during a life company CEO panel discussion.
“We have a moral responsibility to help people retire with grace and dignity,” Mullin said.
Pearson said that many of the 10,000 Americans who retire each day want to travel, take classes, or start new businesses.
“This requires funding,” Pearson said. “We’re very positive about annuities because of the good they do for society.”
Pearson said later during the session that he is happy to see the American Council of Life Insurers and other organizations working to explain the value of annuities.
“There are great products,” Pearson said. “Where else are you going to get guaranteed retirement income?”
Here are four other things Mullin and Pearson talked about during the panel discussion.
1. Memories of the Great Recession Annuity Issuer Shakeout
Mullin and Pearson agreed that the annuity market is far more sober than it was in early 2007, before the 2007-2009 Great Recession rolled in.
Although the market is now more active than it was, “it’s not irrational,” Pearson said.