Hanzlik also pointed out that we are in a bull market and a lot of attention is still being focused on upside potential. “Clearly there has been a perception of complexity there, and that’s why we focus on simplicity and why we have gotten a lot of great feedback around our offering,” he said.
RILAs generally are flexible, Hanzlik explained, and although we are in a bull market, we are now in a low-interest rate environment, which causes more uncertainty. “When you have a 12-year bull market, that certainly drives more stress and concern around how to protect retirement,” he said.
Hanzlik said advisors are focusing more on risk management. RILAs, he said, are a great risk management tool for customers, and that is another reason why there has been tremendous growth in the space, he said.
Last month, Jackson National Life Insurance Company debuted two RILAs. The Jackson Market Link Pro (JMLP), which is commission-based, and Jackson Market Link Pro Advisory (JMLPA), which is fee-based, offer consumers the opportunity to grow assets before and during retirement while offering different degrees of protection against unexpected market events, the company said.
Also, last week, DPL Financial Partners, a turnkey insurance platform for registered investment advisors, launched the Allianz Index Advantage Income Variable Annuity, a commission-free RILA that includes features to manage risk during accumulation and provides guaranteed income with a built-in income benefit rider.
Hanzlik said the RILA space is definitely attracting a lot of attention. He said there is a range of diverse types of products out there that provide flexibility. And they are seeing companies enter the space in alternative forms.
But at CUNA Mutual Group, the focus remains on simple to use and understand solution. “Our focus on simplicity, we think, will continue to differentiate us. Our RILA solution has been very straightforward and that’s the feedback we get from advisors,” he said.