NAIC Surveys Reveal Drop in Indexed Annuity Carriers, Premium

June 24, 2009

SOURCE: InsuranceNewsNet, Inc.

Out of 50 indexed annuity (IA) insurers, 12 have either left the annuity business or gone into rehabilitation since 2008, according to a survey by the National Association of Insurance Commissioners (NAIC). The study also found total premiums for the IAs among the 50 companies dipped to $21.5 billion in 2007 from $22.2 billion in 2006 and $23.4 billion in 2005.

Other findings included in the NAIC surveys are:

• About 50 percent of IA premiums in 2005, 2006 and 2007 were from the issuance of FIAs to replace another annuity product owned by customers. Only about 10 percent of the annual IA premiums were from surrendered contracts.
• 61 percent of IAs were sold by independent agents over the three years. Banks sold 18 percent while general agents accounted for 10 percent. Captive agents accounted for 4 percent and other sources, 7 percent. 

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