Why fixed indexed annuity sales continue to grow
September 1, 2015 by JAMIE E. GREEN, WARREN S. HERSCH, EMILY HOLBROOK
The “Great Recession,” followed by a sustained low-interest rate environment, are just a couple of factors that have contributed to a fairly tumultuous period in the life insurance industry over the past half-decade. One bright spot within the industry, however, has been the continued robust growth of fixed indexed annuity (FIA) sales.
First introduced in the mid-1990s, fixed indexed annuities are a relatively new product line by industry standards. However, 2014 sales reached nearly $47 billion, representing the sixth consecutive record year for sales, according to Wink, Inc., an annuities and life insurance consulting firm. And sales don’t show signs of slowing down either. First-quarter sales this year topped $11 billion, greater than any other first quarter in the history of the product line, according to Wink’s Sales & Market Report.