The traditional variable annuity market could be heading toward a revival in 2026.
Analysts at Goldman Sachs Asset Management have reported possible signs of a VA reboot in a summary of the results of their latest annual U.S. retail annuity market player survey.
The firm talked to more than 100 annuity market players, including dozens of people involved in annuity design.
The product designers surveyed had no noticeable interest in annuities that hold cryptocurrency or other digital assets: The share of participants who said crypto annuities could be the next big thing fell to 0%, from 2% in 2024.
The percentage who said they are focusing on traditional guaranteed variable annuities that can provide a lifetime income increased to 60%, from 44%, and the percentage working on investment-only variable annuities increased to 42%, from 36%.
What it means: Rumors that the registered index-linked annuity has killed insurers' interest in the traditional variable annuity may be greatly exaggerated.
The basics: A traditional variable annuity is a contract with a crediting rate that can be tied to the performance of one or more investment funds that resemble mutual funds.
A RILA is a contract with a crediting rate that can be tied to the performance of one or more investment indexes.
Life insurers can manage a RILA program by buying the right index options. That can make issuing a RILA simpler and cheaper than offering a traditional variable annuity, but one constraint is that the issuer needs to be able to find the desired index option from a suitable counterparty.
Variable annuities: Wink and LIMRA have reported signs of strength in traditional VA sales in recent quarters.
Wink found that the number of traditional VA contracts sold increased 44% between the first quarter of 2024 and the first quarter of 2025, to 71,282.
LIMRA reported that the value of traditional VA sales rose 14%, about $16 billion.
RILAs: Goldman Sachs noted that RILA design is still hot: The percentage of product designers focused on that rose to 77%, from 70%.
About 61% of the product designers said new and additional crediting methods are the features that help RILAs stand out from the pack, but the designers also cited another differentiator: shorter RILA terms.
About 27% of the product designers agreed that shorter terms can help a RILA get attention.
Credit: Design Pics/Thinkstock
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