ING cementing broker-dealer relationships amid push for new fixed indexed annuity feature

ING is making another go at the independent broker-dealer market, this time with a new fixed indexed annuity feature scheduled for an August release.
JUL 11, 2011
ING is making another go at the independent broker-dealer market, this time with a new fixed indexed annuity feature scheduled for an August release. The new feature would use the three-month Libor rate as a way to credit interest to the insurer's Secure Index Five, Seven and Opportunities Plus fixed indexed annuities. At present, the product offers a fixed rate strategy, which credits interest at a rate declared by ING, along with index-linked strategies. “Consumers may not want to lock the fixed rate now, but what if we tracked the three-month Libor?” asked Chad Tope, president of ING Annuity and Asset Sales. If the Libor — the interest rate at which banks lend to each other — rose, so would the interest credited to the annuity, he noted. The new feature will target independent broker-dealers, with which ING has kept ties following its exit last year from the variable annuity business. ING shut down its VA wholesaling unit, but continued distributing five- and seven-year fixed indexed annuities through broker-dealers, using a system of 25 internal wholesalers and 50 national marketing organizations, Mr. Tope said. Five individuals working at the marketing organizations handle the insurer's external relationships. Broker-dealers had pelted the insurer's fixed indexed annuity wholesalers with questions following ING's departure from the VA business. “We had to answer questions along the lines of why we exited the market,” Mr. Tope said. “But it was easier than expected to continue our relationships with the broker-dealers.” Though the new feature and stepped-up outreach to broker-dealers signals the next stage for ING as a fixed indexed annuity carrier, the insurer doesn't necessarily want to aim for the very top of the list. Currently, Allianz Life Insurance Co. of North America, American Equity Investment Life Holding Co. and Aviva USA are the top three fixed indexed annuity sellers. ING was at fifth place for the first quarter, according to AnnuitySpecs.com. “We're very happy with our marketplace position,” Mr. Tope said.

Latest News

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets
Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets

Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.

Gen Z is grappling with a financial balancing act, new report reveals
Gen Z is grappling with a financial balancing act, new report reveals

Rising costs, low wages are making it hard for young Americans to move ahead

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

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.