Fearing risk, insurers changes VAs to cut benefits and raise fees

Insurers make changes to hedge risk in products

Insurers are rolling out adjustments to their variable annuity products — this time with an air of caution.

On May 1, the date that heralds a slew of final VA filings, carriers were as busy as they were last spring, before the market meltdown...

“What we have seen over the last few months is that at least half of the top 20 VA writers have discontinued sales of at least one living benefit,” said Gerry Murtagh, manager of Ernst & Young LLP's Retirement Income Knowledge Bank, the New York firm's financial products database. “Another thing we've noticed is that there are players in the market who are no longer offering VAs with living benefits...”

Investment News: Fearing risk, insurers changes VAs to cut benefits and raise fees