Annuity sales are trending down, but sales and product teams are hiring up.

Some of the largest annuity manufacturers are creating new leadership positions among their product and distribution teams, hoping an evolving retirement and regulatory landscape offers prepared companies a chance to grab market share. Lincoln Financial, Prudential and Franklin Templeton have all created new or expanded annuity distribution leadership roles this year.

“What you’re seeing is the need for a new type of distribution and product leader,” says Dave Seeley, a consultant in the insurance practice for executive search firm Russell Reynolds Associates. He notes that historically, many companies focused on the product first and the customer second. That focus has reversed, Seeley says. Companies are breaking the silos that once existed between distribution and product and are creating a coordinated effort across the organization that prioritizes the customer.

Pinpointing customer needs was one of the reasons Lincoln hired Tim Seifert as its first head of annuity sales in May. Simple demographics are also driving the sales focus, says John Kennedy, senior VP and head of Lincoln’s Retirement Solutions Distribution.

Forecasts for annuity sales are down in the near term: Limra projects overall annuity sales to decline 5% to 10% this year, falling below $200 billion for the first time since 2001. But Lincoln is looking further out. With a wave of Baby Boomers turning 65, the need for lifetime guaranteed income has never been greater. “The demographics don’t lie,” Kennedy says.

He acknowledges there are obstacles to overcome. Kennedy estimates only 25% to 30% of financial advisors believe in the value proposition of a variable annuity.

“As a fiduciary, I think advisors are going to have to learn more about these solutions,” he says.

Kennedy hired Seifert to help the firm’s wholesalers foster more consultative partnerships with advisors so they could pinpoint the right income solution for clients.

Lincoln is also focusing more on product evolution. Roughly three months ago, it created an Annuity New Frontiers group, which brings together marketing, distribution and product leadership to identify what new annuity products will be needed in the future.

“We could be rolling out products five years from now that we couldn’t have imagined existing today,” Kennedy sys.

Lincoln is not alone in creating new distribution leadership positions. In January, Prudential hired James Mullery as senior VP and head of distribution and sales for Prudential Annuities. The role was new, according to a release at the time. In that role, Mullery has been charged with developing and driving sales and distribution strategy for the annuity business.

In May, Prudential Annuities hired Voya veteran Dianne Bogoian as its head of product and a member of the business group’s senior leadership team. The role is also new, a spokeswoman confirmed.

In January, Franklin Templeton appointed Jacob Armstrong as head of its insurance variable annuity business. In that role, Armstrong oversees strategy, product development, marketing, business development and relationship management.

While annuity sales may decline in the near term, Franklin Templeton believes there are opportunities within a changing marketplace.

“The market is evolving from a production perspective, a distribution perspective and a compensation perspective, but the need for lifetime income hasn’t gone away,” Armstrong says. “We think we can bring a level of expertise to our clients as we embrace these changes.

Armstrong expect new products from the firm at some point.

“You will see new variable annuity strategies coming from Franklin Templeton,” he says. “We’re also developing custom indices for the fixed annuity space and will continue to develop those for that market.”

Armstrong believes there is a growing market for more sophisticated asset allocation solutions within VA products. This is an area where Franklin Templeton can bring its asset management expertise to bear. “We’re focused on how you create better client outcomes within the next generation of multi-asset and managed volatility solutions,” Armstrong says.

Armstrong also sees potential for Franklin Templeton to grow market share within the fixed index annuities market. As the indexes within those products become more customized he believes Franklin Templeton can leverage its Liberty Shares ETF business as a unique index provider.

“As an asset manager, we can bring more [indexed annuity] solutions to clients. That’s a meaningful opportunity to deliver for our clients.”