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Update on Fixed Index Annuity Market (Proliferation of Living Benefits Increases Risk)

Published Oct 29, 2015

13 pages (6811 words) — Published Oct 29, 2015

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Brief Excerpt:

...Growing Portion of Annuity Market: From 2007 to 2014, sales of fixed indexed annuities (FIA) grew by 93% while sales of other fixed annuities (FA) and variable annuities (VA) declined. FIA sales now represent approximately one-fifth of all annuity sales and FIAs are the second-largest segment of the annuity market behind VAs. This growth can be attributed to the low interest rate environment that has slowed traditional FA sales, expanded distribution of FIAs, insurers' declining appetite for VA risk and the introduction of rider benefits on FIAs. Proliferation of Guarantees: According to LIMRA, when available, consumers elected guaranteed lifetime withdrawal benefits (GLWB) for 68% of annuity contracts purchased. While the base contract provides partial equity-market participation and full downside protection, the riders, which can be added for an additional fee, provide the policyholder with guaranteed lifetime income or guaranteed death benefits. FIA Risk Profile Increasing: Competitive...

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MLA:	Fitch Research. "Update on Fixed Index Annuity Market (Proliferation of Living Benefits Increases Risk) " Oct 29, 2015. Alacra Store. May 12, 2025. <http://www.alacrastore.com/fitch-credit-research/Update-on-Fixed-Index-Annuity-Market-Proliferation-of-Living-Benefits-Increases-Risk-872032_report_frame>

APA:	Fitch Research. (). Update on Fixed Index Annuity Market (Proliferation of Living Benefits Increases Risk) Oct 29, 2015. New York, NY: Alacra Store. Retrieved May 12, 2025 from <http://www.alacrastore.com/fitch-credit-research/Update-on-Fixed-Index-Annuity-Market-Proliferation-of-Living-Benefits-Increases-Risk-872032_report_frame>

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