EY: Ernst & Young, LLP, The Annuity Landscape: Five trends to watch for in 2013 and 2014, 2013-01-01

annuity_landscapeAgainst a backdrop of improving economic conditions in the US and the stock market reaching an all-time high, insurers continue to reposition and reinvent their products, strategies and services. These changes enable insurers to offer advisors and investors a broad range of products despite the challenges of the continuing low interest rate environment. For advisors, staying up-to-date with the changes in the market and the characteristics of the products currently available is critical to serving the needs of your clients.
In recent months we have seen John Hancock exit the annuity business altogether, while other companies have limited the amount of annuity business they accept to help actively manage their risk. Some companies have even offered to buy out the guarantees in exchange for adding a lump-sum to the client’s account value. On the other hand, a few companies have made the These companies hope to take advantage of the unmet marketplace needs for higher rates of return and guaranteed income.