If you follow AIP Marketing Alliance on social media, you may have noticed a 2023 trend of posts sticking to the trend of annuity sales throughout the year. Our team always turns to the experts, LIMRA, when we start discussing how the annuity market continues to stay primed for success in 2024.

Don’t believe us? Let’s start out this blog with a quote from LIMRA about 2023.

“Economic conditions and growing demand for protected investment growth propelled fixed annuity sales to a remarkable $286.2 billion, a 36% jump from the record sales set in 2022,” said Bryan Hodgens, head of LIMRA research. “To put this into perspective, prior to 2022, total annuity sales never reached this level. Despite equity markets climbing more than 20% in 2023, investors worried about a downturn. This sentiment, combined with strong interest rates, prompted investors to lock in crediting and payout rates offered in fixed annuity products.”

Staying on that LIMRA train, total United States annuity sales grew 23% to $385 billion last year. In 2023, FIA sales totaled $95.6 billion, up 20% from the prior year. In the fourth quarter, FIA sales were $24.6 billion, a 10% increase from the fourth quarter of 2022.

According to Wink, fixed indexed annuity sales for the fourth quarter of 2023 were $730 million, compared to sales of $575 million for the fourth quarter of 2022. Fourth quarter fixed annuity sales were up more than 47% when compared to the previous quarter, and up nearly 27% when compared with the same period last year.

Now let’s get back to the question in the title of this blog, “Why Aren’t You Selling MYGAs or Other Fixed Annuity Products Yet?”

Multi-Year Guaranty Annuities (MYGAs), Fixed Indexed Annuities (FIAs), and Fixed Annuities (FAs) provide options for supplemental income during retirement years. Annuities are built on providing short-term or long-term accumulation with a locked-in rate, as well as providing protected income over a specific duration selected by the client.

One of AIPMA’s favorite statements is annuities can provide guaranteed lifetime income for your customers. Admittedly, there are not many retirement-based products that can claim this ability for retirement years (based on the claims-paying ability of the carrier, of course).

In terms of comparing MYGAs to traditional CDs, MYGAs have continued to flourish in today’s economy. Each week, AIPMA sends out MYGA rate charts to our wholesalers and agents. Based on our most recent chart and AIPMA’s contracted annuity carriers, there were 35+ five-year products with a higher than 5.0% guaranteed rate and 15+ three-year products with a higher than 5.0% guaranteed rate.

For those reasons, AIPMA will ask again, “Why Aren’t You Selling MYGAs or Other Fixed Annuity Products Yet?”

If you answered, “It’s too difficult,” then AIPMA will counter with, “We have you covered!”

• Ask our Business Development team for our Six Steps to Selling Annuities document
• Review our list of more than 30 top-rated insurance carriers and their available products
• Request our training document and access to our Accelerate online training platform
• Complete the necessary training to sell annuities

Once you complete the necessary tasks, you can schedule an online demo where our BD team can guide you through our online annuity comparison tool (Wink’s AnnuitySpecs) and the FireLight e-app platform. We also can send you some marketing materials to promote annuity sales on social media and via email to consumers. AIPMA also has an annuity lead program to help you get started.

Our team can guide you and your agents on selling annuities, including targeting clients, positioning the conversation and products, and how annuities provide protection against risky economic conditions. These services are free to independent agents nationwide.

What do you need to grow your business in 2024? At AIP Marketing Alliance, “Your Growth is Our Commitment,” as we continue to launch resources to help you do MORE in ’24. Interested in having a conversation about adding annuities to your 2024 strategy? Contact marketing@aipma.com to have one of our team members talk about how annuities can help your business.