VA Sales Drop Seen Leveling Off in 2019

Cerulli Associates report sales of variable annuities are expected to drop by 10 percent through 2018 before leveling off in 2019

U.S. Annuities and Insurance 2016: Adapting to the Fiduciary Reality

Recap: The decline in variable annuity sales is attributable almost entirely to the Department of Labor fiduciary rule.  Variable annuities with high upfront commissions are likely to be pruned from broker/dealer shelves as insurers make way for fee-based options and where compensation is paid on an ongoing basis instead of a one-time upfront commission

Stats:

  • Variable annuity sales are trending toward a drop of more than 20 percent in 2016 compared with 2015
  • In the first nine months of 2016, variable annuity sales dropped 22 percent to $79.4 billion compared with the year ago period, according to LIMRA Secure Retirement Institute’s third quarter U.S. Individual Annuity Sales Survey
  • Sales of fixed indexed annuities have fared much better. They rose 22 percent to $46.9 billion in the first three quarters of 2016 compared with the year-ago period, LIMRA also reported

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