Nearly two in five insurance agents (39%) told us they don’t sell annuities. Among agents with less than five years’ experience, that percentage rises to 45%. Annuities are one of the most complex investment products available; hence, insurance producers’ hesitance.

However, I’ve seen an increase in direct mail sent to insurance producers about annuities and “guaranteed income.” Over the past three years, it seems insurers have become more motivated to educate producers about annuities. It’s a smart move: agents need to know about the changes to annuity products caused by recent volatility in investment markets. Also, consumers are less willing to accept risk nowadays, so guaranteed income annuities are a safe, reassuring option.

By teaching insurance producers more about annuities, insurance companies give their agents more reason to sell them to consumers. Market volatility is making many consumers turn an eye to the security of their retirement accounts, so I believe guaranteed income products are poised to do well in this economy. What do you think? Are annuities an easy sell if producers can explain them to consumers?

Bookmark It

Hide Sites