Iowa insurance man Curtis Cloke thinks he has solved the "annuity puzzle" by building ladders of deferred income annuities for his clients. Now he and his partners are scaling up his "Thrive" system and taking it national.
Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?
Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)
This week, RIJ received a press copy of “What Advisors Want from Annuity and Insurer Providers-2019,” a study by Practical Perspectives, a Boxford, MA-based financial services market research firm.
The financial world has left the “Harry Markowitz” era where Modern Portfolio Theory and Monte Carlo projections reigned, says Philipp Hensler, CEO of U.S. distribution for DWS Investments.
“If you buy a policy, you the policyholder get some of the upside, and guarantee you always get your premium back.” From a company’s perspective, “that’s poison,” Warren Buffett was quoted as saying.
Longevity insurance has been tough to sell, partly because of conflicts with Required Minimum Distribution rules. But Symetra says it has overcome that hurdle with its enhanced Freedom Income Annuity.