Insurance Companies

The insurance industry is well-positioned to fill an expanding hole in the retirement landscape caused by the demise of traditional pension plans.  Single Premium Immediate Annuities and Qualified Longevity Annuity Contracts are two examples where insurers can add value.  However, 401(k)/403(b) plan sponsors have a few insurance industry concerns to overcome, namely:

  • Lack of regulatory guidance to safeguard fiduciaries in the carrier selection process.
  • Lack of products that build “guaranteed lifetime income” during the working years.

Lawmakers are currently working to alleviate this first concern through safe harbor regulations.  We believe it is only a matter of time until employers and insurers come together to overcome the second problem through the development of more attractive Accumulation Annuity products.

We at ANNUA believe Accumulation Annuities can help solve a major workforce and societal challenge.  However, more product innovation is required to allow plan sponsors to make investment menu decisions in the best interest of plan participants.  Accumulation Annuities within a 401(k)/403(b) plan can create recurring premium revenue involving billions of retirement plan dollars in a rapidly expanding, multi-trillion-dollar defined contribution plan market.

Curious about our product vision for the Accumulation Annuity market?  Let’s work together with plan sponsors to identify opportunities for your company.

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