Envestnet Inc. is optimistic about the insurance exchange the company helped start back in June, Bill Crager told securities analysts last week.
The Chicago-based financial technology company said nothing about the Envestnet Insurance Exchange program in its earnings release for the first quarter.
Crager, Envestnet’s chief executive officer, suggested, during a conference call the company held to go over earnings for the first quarter, that the COVID-19 pandemic could, eventually, end up helping the exchange.
The exchange has started out focusing on the sale of annuities. About 4,000 insurance advisors are using the system to help clients buy annuities from eight carriers, according to company figures.
- A recording of Envestnet’s analyst call is available here.
- An article about AIG putting its annuities on the FIDx exchange is available here.
“If you think about the future of the investor, risk is going to grab much more mindset,” Crager said. ”How do you mitigate that, through principal protection, and also through guaranteed income? The insurance exchange becomes an essential.”
Crager said Envestnet is planning to integrate the exchange system with all elements of the company’s business.