The FIDx Five: Selling So Much Made Problems Much Worse
Retirement, Annuity, & Fintech Insights
Covid. Record sales. Outsourced customer service. Find out what's caused the issues with insurers that many are criticizing. Then stick around for four more stories that stood out to us this week in the latest edition of "The FIDx Five."
The Blame Game
Distributors are upset with problems record annuity sales have created. See why servicing and issuing hold ups have gotten worse.
Source: Life Annuity Specialist, “Delays in Serving Policyholders Draw Fire from Agents, Brokers,” 02/01/23
Rep Barred for “Fake Annuities”
Finra banned a former UBS rep in Texas for misappropriating funds by recommending “sham” investments. He used $17M to purchase what UBS calls “fake annuities” that weren’t on its platform.
Source: ThinkAdvisor, “Finra Bars Rep Who UBS Said Used $17M From Clients For Fake Annuities,” 1/30/23
Social Security: What’s the Magic Number?
There's value in waiting to claim Social Security benefits. Here’s why delaying to later can lock in significantly bigger benefits for retirees.
Source: CNBC, “Wait until age 70 to claim Social Security: ‘The return on being patient is huge,’ says economist,” 2/1/23
Paper Shows Life Expectancy Has an Effect on Annuity Ownership
Life expectancy and annuity purchases are heavily correlated. But it turns out the insurers’ and clients’ ideas about how long they’ll live often varies.
Source: ThinkAdvisor, “Whose Life Expectancy Views Drive Annuity Sales?” 1/30/23
LIMRA Gives Full 2022 Review
Annuity sales hit $310.6 billion last year, according to a new LIMRA report. That record number was a 22% jump over 2021.
Source: Barrons, “Annuity Sales Break Records in 2022: Limra," 1/30/23
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