Posted by (American Life Insurance Guide Net 03/06/2024 News) According to a life insurance survey report by industry data service platform Wink, quarterly product sales of MYGA (multi-year guaranteed interest rate annuity) soared to US$530 billion, an increase of 2022% from the fourth quarter of 4.
Interest rate hikes boost annuity sales
As interest rates continue, premium growth for MYGA annuity insurance will be particularly strong in 2022.
By 2023, Wink’s data shows that total personal deferred annuity sales increased by 4% year-on-year in the fourth quarter, reaching $33 billion.
LIMRA, the American Life Insurance Association, pointed out that insurance companies participating in the survey said that total annuity sales to individual policyholders increased by 29%, reaching $1150 billion. Despite the decline in credit ratings, investors and policyholders continue to invest in annuity insurance products.
Wink's data
The following are Wink survey results reflecting changes in the annuity insurance market between the fourth quarter of 2022 and the fourth quarter of 4:
- MYGA multi-year fixed rate annuity insurance:$530 billion (up 48%)
- Combination annuity insurance (RILAs): $120 billion (up 33%)
- Indexed annuity insurance: $280 billion (up 29%)
- Traditional fixed-rate annuities: $7.31 million (up 27%)
- Traditional securities-based annuity insurance: $120 billion (down 3.7%)
Income annuity with growth rate exceeding 80%
According to LIMRA data from the American Life Insurance Association, fixed-rate tax-deferred annuity insurance products, including MYGAs, have grown by 52%.
Changes in tax rules have allowed deferred income annuities, once a niche market, to grow by more than 80%.
Here are the data findings provided by LIMRA:
- Deferred income annuities: $13 billion (up 81%)
- Fixed-rate deferred annuities: $590 billion (up 52%)
- Portfolio annuities: $130 billion (up 29%)
- Indexed annuities: $250 billion (up 10%)
- Fixed income annuities: $35 billion (up 9%)
- Securities annuities (other than indexed annuities): $120 billion (down 3%)
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