Novarica Report: Variable Annuity Writers Must Streamline to Thrive

Variable annuity writers need to focus on streamlining products and distribution in order to take advantage of changes in the market that make their products more appealing than ever, says two new reports by Novarica (www.novarica.com), a research and advisory firm serving insurers and wealth management companies. The report results will be presented in a webinar on August 26th at 2 PM ET... Mr. Ellis’s first report, Trends & Issues in Retailing Variable Annuities: Moving from Tax-Advantaged Investments to Desirable Retirement Planning Tools looks at the major impediments to improving VA sales. Findings include:

* VAs are no longer being sold solely as a tax-advantaged investment, instead they are now recognized as an important retirement planning tool.
* The product sale is all about the guarantees and at what cost; the wrapper and underlying investments are less important.
* High prices and high commissions are the causes of much of the negative associations of VAs.
* Complexity of the products and frequent product redesign hurts sales.
* The sales cycle to the investing public is too long; it needs to be more like mutual funds...

Business Wire: Novarica Report: Variable Annuity Writers Must Streamline to Thrive