Monday, April 06, 2009
Insurers slow production of fixed-index annuities
Aviva, Midland, North American, EquiTrust, Fort Dearborn make moves to dampen sales
Insurers, concerned about conserving capital, have put the brakes on their fixed-index-annuity production, a move that advisers say could put a crimp in their business.
Carriers, including Des Moines-based Aviva USA — the largest seller of index annuities — have been turning down the volume on such sales, raising fees for riders, reducing sales commissions and putting a temporary stop to the licensing of new annuity producers. Aviva also ended relationships with some of its distributors and producers.
And the carrier isn't alone.
Midland National Life Insurance Co. of Sioux Falls, S.D., and North American Company for Life and Health Insurance of Chicago have also pulled back. Both stopped accepting new agents as of mid-March...
Investment News: Insurers slow production of fixed-index annuities
Insurers, concerned about conserving capital, have put the brakes on their fixed-index-annuity production, a move that advisers say could put a crimp in their business.
Carriers, including Des Moines-based Aviva USA — the largest seller of index annuities — have been turning down the volume on such sales, raising fees for riders, reducing sales commissions and putting a temporary stop to the licensing of new annuity producers. Aviva also ended relationships with some of its distributors and producers.
And the carrier isn't alone.
Midland National Life Insurance Co. of Sioux Falls, S.D., and North American Company for Life and Health Insurance of Chicago have also pulled back. Both stopped accepting new agents as of mid-March...
Investment News: Insurers slow production of fixed-index annuities
Permalink posted by markw @ 6:51 AM 
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