Amid record sales for fixed indexed annuities over the past several quarters, a new study reveals that several challenger firms are showing stronger momentum than established market leaders among insurance agents and financial advisors, and are thus poised to capture increased market share. These and other findings are included in Fixed Annuity Brandscape™, a new report from Cogent Reports™, a division of Market Strategies International.
According to the report, American Equity has the highest Asset Investment Momentum™ (AIM) score among agents, while Jackson National is highest among financial advisors. Allianz, the established market leader, and several other providers trail the two companies. AIM is a proprietary metric established by Cogent Reports based on producers¡¯ stated intentions to begin using, increase or redeem investments with providers.
¡°We see distinct differences in brand preferences and momentum between insurance agents and financial advisors selling fixed indexed annuities,¡± explains Linda York, vice president of the syndicated research division at Market Strategies and author of the report. ¡°Not only does American Equity lead on AIM among agents, the firm also enjoys highest satisfaction among current users. Among financial advisors who are generally less familiar with fixed indexed annuity products, Jackson National is benefiting from its strong market presence as a variable annuity powerhouse.¡±
In welcome news for all fixed indexed annuity providers, Cogent Reports has determined that the average momentum score for the category as a whole is positive, meaning that more producers forecast an increase in their fixed indexed annuity sales than intend to redeem assets held in these contracts for the remainder of the year. At the individual provider level, 13 firms earn momentum scores higher than the industry average among insurance agents, and 7 firms top the average among financial advisors.
¡°Momentum is built and maintained by a combination of factors: pleasing your current user base and attracting new producers,¡± continues York. ¡°Among fixed indexed annuity providers, the most revered providers stand out for demonstrating a high level of integrity and honesty and exhibiting a depth of understanding and commitment to the continued success of producers in this market.¡±
Cogent Reports conducted an online survey with 870 life insurance agents and financial advisors from May 30 to July 20, 2014. Survey participants were required to provide financial planning advice or recommendations on investments or insurance products to individual investors for a fee or on a transactional basis. Additionally, financial advisors were required to have an active book of business of at least $5 million. Cogent Reports set quota targets and weighted the data to be representative of the overall Discovery Registered Representative, RIA and Life Agent databases and the Financial Media Group¡¯s Database of Insurance Agents. Additional reference was made to Cogent Report¡¯s Advisor Brandscape® data to determine the proportion of financial advisors selling fixed or fixed indexed annuity products. Market Strategies will supply the exact wording of any survey question upon request.
