BISA Magazine - Quarter 1, 2017 - 4

UP FRONT

Cerulli: DOL Could
Drop Annuity
Sales by 10%

drop of 10 percent in variable annuity (VA)
and fixed indexed annuity (FIA) sales
through 2018 may be expected because of
the Department of Labor's (DOL) new
fiduciary duty rule, predicts Cerulli Associates (Boston), a research and consulting firm.
Insurance carriers will need to adapt to the new regulatory
environment. "In order to ensure future relevance, insurers must examine both the pricing and positioning of their
products," says Donnie Ethier, associate director at Cerulli.
Cerulli says interest in fee-based VA products has been
slowly growing within the industry over the past few years,
as most insurers and distributors believes they'll be needed
to comply with the DOL rule.

4
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"Adoption of the fee-based model has been mostly overlooked by the industry," Ethier says. "However, what was
once considered an opportunity is now a necessity."
According to Cerulli, nearly half of insurers surveyed said
that sales through fee-based platforms would increase as a
result of the rule. "They could also be a source of future innovation, given that few versions currently offer guarantee
lifetime benefits," Ethier states. "This may be an opportunity
for developing new benefit ideas for this contract class."
Ethier adds that if "insurers can develop creative products
that focus on how advisors do business, they can aid their
cause in the years ahead."



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Table of Contents for the Digital Edition of BISA Magazine - Quarter 1, 2017

Table of Contents
BISA Magazine - Quarter 1, 2017 - Cover1
BISA Magazine - Quarter 1, 2017 - Cover2
BISA Magazine - Quarter 1, 2017 - Table of Contents
BISA Magazine - Quarter 1, 2017 - 2
BISA Magazine - Quarter 1, 2017 - 3
BISA Magazine - Quarter 1, 2017 - 4
BISA Magazine - Quarter 1, 2017 - 5
BISA Magazine - Quarter 1, 2017 - 6
BISA Magazine - Quarter 1, 2017 - 7
BISA Magazine - Quarter 1, 2017 - 8
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BISA Magazine - Quarter 1, 2017 - 32
BISA Magazine - Quarter 1, 2017 - Cover3
BISA Magazine - Quarter 1, 2017 - Cover4
https://www.nxtbook.com/nxtbooks/bisa/2017q4
https://www.nxtbook.com/nxtbooks/bisa/2017q3
https://www.nxtbook.com/nxtbooks/bisa/2017q2
https://www.nxtbook.com/nxtbooks/bisa/2017q1
https://www.nxtbook.com/nxtbooks/bisa/2016q4
https://www.nxtbook.com/nxtbooks/bisa/2016q3
https://www.nxtbook.com/nxtbooks/bisa/2016q2
https://www.nxtbook.com/nxtbooks/bisa/2016q1
https://www.nxtbook.com/nxtbooks/bisa/2015q4
https://www.nxtbook.com/nxtbooks/bisa/2015q3
https://www.nxtbook.com/nxtbooks/bisa/2015q2
https://www.nxtbook.com/nxtbooks/bisa/2015q1
https://www.nxtbook.com/nxtbooks/bisa/2014q4
https://www.nxtbook.com/nxtbooks/bisa/2014q3
https://www.nxtbook.com/nxtbooks/bisa/2014q2
https://www.nxtbook.com/nxtbooks/bisa/2014q1
https://www.nxtbookmedia.com