Morningstar adds Luma annuity technology to Advisor Workstation

Independent investment research provider Morningstar announced Tuesday that it's adding the Annuity Intelligence Center to its widely used Advisor Workstation.

The Annuity Intelligence Center, developed by Luma Financial Technologies, is designed to help financial advisers manage annuity transactions for their clients. It also provides advisers with educational material and comparison functionality.

Approximately 180,000 financial advisers currently use Morningstar’s Advisor Workstation solution.

Annuity sales have skyrocketed this year as investors pursued steady payouts amid a volatile equity market. Total U.S. annuity sales increased 27% to $79.6 billion in the third quarter, the highest quarterly sales recorded since Limra began tracking annuity sales and nearly $9 billion above the previous record set in the fourth quarter of 2008 during the Great Recession.

“Assets in annuities are climbing, and while these vehicles are growing in popularity, the annuity marketplace remains opaque, and advisers serving investors have difficulty evaluating their options,” Jeff Schwantz, Morningstar's global head of channels and partnerships, said in a statement.

Schwantz added that the Annuity Intelligence Center brings a new level of transparency to the industry by “removing complexities and modernizing workflow, including lifecycle management from pre-trade, trade, and post trade.”

“Investors are using annuities in several ways, and Luma’s technology in the Annuity Intelligence Center positions advisors to understand when and how an annuity could benefit a client. We look forward to strengthening our relationship with Morningstar and continuing to transform the annuity experience for investors around the world,” Keith Burger, Luma’s head of distribution for North America, said in the statement.

The Annuity Intelligence Center equips advisers with a single solution for multiple annuity product types, including variable annuities, fixed index annuities and registered index-linked annuities.

"At the end of the day, we think Luma's technology simplifies and streamlines an increasingly complicated product and application landscape to let advisers concentrate on the value proposition of the insurance guarantees,” said Ethan Young, director of insurance and annuities at Commonwealth.