Twenty years after their introduction, fixed indexed annuities continue to grow in popularity among broker-dealers and consumers.

Fixed indexed annuities (FIAs) now make up 10 percent of total broker-dealer annuity sales, according to a new report by the Insured Retirement Institute, and half of broker-dealers expect this share to continue to grow.

FIAs are the third most popular form of annuity, after variable annuities with and without lifetime guarantees, with sales increasing 24 percent over 2014 to $48 billion. Since 2012, FIAs have outsold traditional fixed annuities.

The Insured Retirement Institute surveyed 15 member distributor firms between January and March 2015 for the report, with respondents coming from national wirehouse, regional and independent broker-dealers, banks and other financial firms.

The report also found that:

FIA sales are growing for 80 percent of firms, with 40 percent reporting significant sales growth.

Distributors believe higher interest rates, lifetime income benefits, and principal protection will drive FIA sales growth.

Most distributors, about 90 percent, make at least five FIAs available to their advisors.

About 60 percent of distributors believe that wholesalers are very or extremely important to the success of FIA sales.

FIA products sold by more than 60 percent of distributors pay gross commission of 5 percent or less.

First « 1 2 » Next