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In Practice June 15, 2011
Asset Managers and Insurers Recommend Retirement Income Training
A survey from the Insured Retirement Institute (IRI), in partnership with
Cerulli Associates, examined asset manager and insurer attitudes toward the
future of the variable annuity industry.
Reported by Sara Kelly
The study found that roughly half of asset managers and insurers, 50% and 46.7% respectively, believed that increased retirement income training was the best course to pursue to attract new advisers to insured retirement strategies. Both insurers and asset managers claimed that focusing on increasing awareness as to how a variable annuity can fit into a retirement income plan could increase the number of advisers interested in selling them significantly.
When indicating future product and distribution opportunities, insurers ranked non-qualified variable annuities and income guarantees in defined contribution plans the highest. The study also saw that roughly two-thirds (63%) of insurers rank the independent broker/dealer channel as the leading space to grow variable annuity sales within the next two years, followed by the bank channel and wirehouses, with 54.5% of insurers citing upcoming sales growth in both areas.
“We have found that nine out of ten Boomers who own annuities have a higher confidence in the financial stability of their retirement when compared to those who do not,” said IRI President and CEO Cathy Weatherford. “With the need for guaranteed lifetime income at an all time high, there is a great incentive for the industry to ensure that advisers have the necessary tools and information to help alleviate client retirement concerns and provide the financial safety and security investors seek.”
The full report is available here.
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