New Indexed Annuities Grab Market Share as Banks Jump In
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Buyers of U.S. annuities are clamoring for new products linked to indexes that may use elaborate strategies to control risk, attracting regulatory scrutiny as they widen a market that favors more traditional structures.
A total of 27.7 percent of indexed annuities sold in the third quarter of last year are tied to measures that track stocks and other types of assets, such as cash or commodities, according to Wink’s Sales & Market Report. A year ago, these types of indexes didn’t exist in Wink’s market data.