Annuity Carriers Need to Innovate Products, Processes, and Technology to Avoid Being Left Behind

Enduring investors seek a lifetime income guarantee

Boston, Mass. (Dec. 10, 2013) – The U.S. financial services industry has traditionally focused on asset accumulation achieved through a narrow set of products and channels, but high equity-markets volatility, low interest rates, and lengthening lives are leaving U.S. investors hungry for guarantees that they won’t outlive their investments. Of the US$20.9 trillion in U.S. total retirement assets, 54% is not subject to any type of a defined-benefit or private insurance guarantee, providing U.S. annuity carriers a historic opportunity to expand their market reach. Laggard annuity carriers that do not innovate their products to include more investment choices and guaranteed retirement income at a lower cost will be left behind the few companies that offer these products and focus on customer needs.

Annuity carriers positioned to provide tax and guarantee overlay

Based on Aite Group interviews with top U.S. annuity carriers, this report by research director Todd Eyler discusses investors’ and advisors’ current usage of annuities as well as key product, process, and technology challenges for reigniting growth and capturing a much higher share of U.S. retirement assets.

The 39-page Impact Report, containing 16 figures and eight tables, is available from Aite Group.

About Aite Group

Aite Group is a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. Visit for more information.

Source: Aite Group