Survey Also Finds That Nearly Two-Thirds of Insurers Either Offer or Plan To Offer Simplified Annuities in the Next 12-18 Months

WASHINGTON, D.C. - The Insured Retirement Institute (IRI) today released a survey in partnership with Cerulli Associates that offers critical insight into the state of the annuity industry. 

Conducted in the first quarter of this year, the survey found that the overall outlook for the annuity industry is positive, as retirement income and principal protection continue to rate highly among industry executives and advisors. While some challenges remain, respondents indicated the growth industry's opportunities are strong, with growth for variable annuities ranking 4.1 on a 5-point scale, and fixed ranking 3.2 on the same scale.

"With the increased spotlight placed on the exclusive retirement income security provided by annuities, it's no surprise positive expansion is coming," said Insured Retirement Institute President and CEO Cathy Weatherford. "The findings of the survey clearly underscore this potential, and foretell future innovations and advancements in living benefit offerings. While insurers work to further develop simplified offerings, both broker/dealers and advisors consider living benefits to be a key factor in selecting a product. Robust living benefit guarantees help balance out possible market volatility with a level of protection, offering consumers peace of mind as they continue to reenter the market. The coming year will undoubtedly bring about important advancements throughout the industry." 

The survey also found that: 

* A hot topic within the variable annuity industry is the development of simplified products; nearly two-thirds of insurers surveyed indicated that they either offer simplified annuities, or plan to do so in the coming 12-18 months.

* Demographic need has tremendous potential to drive VA sales, given the need for guaranteed lifetime income and principal protection that can only be provided by an annuity.   

* The financial strength rating and living benefits rank top in importance of factors in broker/dealer selection of a VA provider, with both earning a 4.6 on a 5-point scale.

* Living benefits and the financial strength rating are also highly valued by advisors when selecting a VA provider, with 72% considering living benefits and 80% looking at ratings.

* There has been an increase in the consideration of annuities for wealth transfer purposes, particularly to provide retirement income to heirs, while also providing a degree of spendthrift protection.

The key findings and analysis can be found HERE.

About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is a not-for-profit organization and is the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. IRI's mission is to: encourage industry adherence to highest ethical principles; promote better understanding of the insured retirement value proposition; develop and promote best practice standards to improve value delivery; and to advocate before public policy makers on critical issues affecting insured retirement strategies. Visit www.IRIonline.org to experience the new, vast resources of the new Insured Retirement Institute for yourself.       

About Cerulli Associates
Headquartered in Boston with offices in London and Singapore, Cerulli Associates provides financial institutions with guidance in strategic positioning and new business development. Our analysts blend industry knowledge, original research, and data analysis to bring perspective to current market conditions and forecasts for future developments. Cerulli's core practice areas include: Asset Management (Retail and Institutional), Annuity and Insurance, Intermediary, Managed Accounts, Retirement, and International. Cerulli's research product line includes Thematic Reports, Quantitative Updates, Special Reports, and The Cerulli Edge series. For more information, visit www.cerulli.com or contact CAmarketing@cerulli.com.

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