The annuity industry had an exciting year in 2024, with plenty of new developments and innovations aimed at making life easier for both consumers and financial advisors. From digital platforms getting major upgrades to mobile apps becoming more convenient than ever, providers are stepping up to meet the needs of an on-the-go, tech-savvy audience. Also notable is the growing popularity of indexed annuities, which continue to evolve with new features and offerings. Below, we break down three key trends in the annuity industry that stood out this year.
Revamped Digital Platforms Change the Game
2024 saw a significant trend toward improving digital platforms, with many providers in the annuity industry completely overhauling their sites and tools to make them more intuitive and user-friendly. For example, Fidelity launched its new Planning & Guidance Center, which makes it easier for both current clients and potential customers to navigate retirement planning options. For Fidelity clients and individuals just exploring retirement options alike, the redesigned experience feels more personalized and approachable.
Several firms revamped their homepage designs to enhance user navigation and focus on key offerings. Equitable introduced a new header to direct users to specific audience types and added a dropdown menu for quick access to essential pages. TIAA focused on retirement and financial wellness, with a banner showcasing core offerings and expandable sections for helpful resources. Prudential modernized its homepage with personalized tools and links to resources, while Fidelity simplified access to financial products and goals with a new, clear navigation and easy account setup options.
Mobile Platforms Make Annuity Management Easier than Ever
Mobile platform updates were another key trend in the annuity industry this year. As more people rely on their smartphones to manage their lives, annuity providers are making sure their apps keep up. Nationwide rolled out a comprehensive update to its mobile app, which now features a clean, modern interface designed to make navigation smoother for policyholders. Key upgrades include a more intuitive Dashboard that provides a clear, consolidated view of policy details and performance metrics, allowing users to easily check the status of their annuity accounts. Users can also manage premium payments and track important policy milestones without logging in to multiple systems or dealing with confusing menus.
Meanwhile, USAA made notable strides in the mobile space by launching a new end-to-end annuity application on its mobile app. It offers a streamlined and user-friendly interface that allows customers to manage their annuity contracts easily. The app includes features for viewing contract details, tracking performance and adjusting beneficiaries, making it a convenient tool for annuity holders who are on the go. The recent updates also include real-time notifications as well as simple, secure ways to make changes or requests directly through the app, enhancing the overall user experience.
Indexed Annuities Keep Getting Better
The index-linked annuity market continued its rapid growth, driven by the launch of innovative products and features catered to evolving investor needs. Fixed-index annuities (FIAs) and registered index-linked annuities (RILAs) saw record sales increases, with product development focusing on providing more flexibility, higher growth potential and enhanced security for investors. Notably, 13 out of the 20 new annuity product launches tracked by Corporate Insight were index-linked, with six FIAs and seven RILAs leading the way. This growth was further fueled by the introduction of advanced crediting methods, performance lock features and guaranteed benefits aimed at attracting new customers and addressing market volatility.
Many firms introduced innovative crediting methods, such as dual-direction and performance lock strategies, which are gaining traction in both FIA and RILA offerings. For instance, Corebridge Financial and Lincoln Financial both launched RILAs that incorporate dual-direction crediting, which allows investors to capture gains even if the index remains flat. Lincoln also further expanded this feature to its FIA products, a significant development that broadens access to its Dual Trigger, allowing investors to capture growth when an index is up, flat or down.
Premium bonuses and guaranteed lifetime withdrawal benefits (GLWB) have also become key components in attracting clients to index-linked products. Allianz, American Life & Security, Delaware Life, North American and Security Benefit Life all launched products featuring premium bonuses, with some firms emphasizing these bonuses in their marketing. Meanwhile, Jackson and MassMutual added GLWB options to RILAs, allowing investors to secure a guaranteed income stream while benefiting from the growth potential of index-linked products.
For more on the latest trends in the annuity industry, check out our Annuity Monitor subscription research service. And check out our Insights section for the latest digital trends across financial services and healthcare.
Andreas Tsiaras
Andreas Tsiaras is an analyst on CI's life insurance and annuity team.