Coming soon: More guaranteed-income products

Industry leaders say advisers and consumers want simpler, cheaper annuities
JUN 15, 2010
The financial services industry is planning to launch a broad array of guaranteed-income products as demand for these investment options increases, according to executives at InvestmentNews’ Retirement Income Summit in Chicago. Robert DeChellis, president and chief executive of Allianz Life Financial Services LLC, said last week that Allianz Life Insurance Company of North America has filed a registration statement for a variable annuity it plans to launch this year, the Allianz Retirement Pro Variable Annuity. The product is designed for the dually registered fee-based investment adviser. During a panel discussion between Mr. DeChellis and Christopher Blunt, executive vice president of retirement income security at New York Life Insurance Co., both executives said the industry is responding to feedback from consumers and advisers that annuity products need to achieve their purpose of providing lifetime income. They also need to be simpler, and with lower fees. Some advisers and customers still don’t completely understand annuities, they agreed, but at their core, annuities are simple instruments and should be considered another asset class or security. In the future, Mr. Blunt said, “you’ll see simplicity by design” in the annuities industry, because “at the end of the day, you have to be able to explain it.” He added that when annuities become “more about the guaranty and less about the legal structure of being an annuity, the market will expand.”

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave