When a life insurer has a hard time providing basic information about an annuity holder, that may be a sign the annuity holder is likely to drop a contract.
Ruark Consulting LLC has published data supporting that possibility in its 2020 U.S. variable annuity market study.
Ruark analysts based the new study on data on 13.9 million policyholders and $675 billion in account value from 20 participating insurers.
That compares with data on 14 million policyholders and $795 billion in account value from 24 participating issuers for Ruark’s 2019 variable annuity market study.
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One indicator the Ruark analysts examined is how often contract holders surrendered their contracts.
The annuity contract surrender rate is less than about 5% for contracts sold through career agents, independent agents, direct sales programs and full-service broker-dealers, and about 6% for contracts sold through banks, according to a study summary chart made available to the public.