According to Darla Mercado of Investment News, insurance companies have new targets in their sight to increase sales of variable annuities. Mercado’s article “Insurers target new channels to help boost VA sales” talks about the insurance companies’ plans. At the Insured Retirement Institute’s marketing conference in New York this week, the panel spoke of their need to change direction due to the financial crisis. Insurers are looking to reach out to different types of potential customers and advisers in previously uncharted territories.
One of the biggest groups of people who could potentially benefit from variable annuities are 401k participants and managed-money programs. Insurers hope that pre- and post-retirees will make 401k annuity transfers and purchase variable annuities from them. The purchase of annuities will guarantee a lifetime income stream throughout retirement. Some new products have also come out of this need to advance with the changing economic climate. Lincoln Financial is introducing a long-term-care rider with both their fixed and variable annuities. Updates and changes from insurance companies are meant to help consumers in the long run. A little competition can breed great ideas.