Bank Sales of FIAs Reach Record Highs

Advisors Are Being Outflanked by Bankers

Indexed annuity sales through banks and credit unions reached a record high of over $1.06 billion in 2013. For the first time, indexed annuities
accounted for one-third of bank sold fixed annuities.

According to Janet Cappelletti, Head of Research at BISRA, “Indexed annuities heated up in 2009 reaching almost $900 million in the third quarter. Indexed sales then cooled for a few years, but we are now seeing sales that surpass the 2009 record. With the Dow over 15,000 consumers are hoping for some upside but trading ultimate gains for downside protection.”

“Annuity sales at banks were up across the board in the second quarter,” she continued, “and while fixed annuities have been see-sawing, we’ve been seeing strong and consistent growth with indexed products for the last six quarters.”

As many of you know Table Bay has long warned against the encroachment of Banks and Wall Street into the FIA world. Consumers show over and over again that they want the benefits and features that FIAs offer them and their future financial security. Advisors that continue to ignore the Power and Protection that Fixed Indexed Annuities provide risk seeing clients take assets to the banks instead of the advisor.