Widespread market uncertainty coupled with historically low interest rates are pushing investors away from the once popular fixed indexed annuity (FIA) products, and toward registered index linked annuities (Rila) amid worsening industry sales in the second quarter of 2020.
According to the Secure Retirement Institute (SRI) LIMRA, total FIA sales fell by 40% to US$12 billion, the lowest recorded figure since the first quarter of 2015. During the first half of the year, FIA sales declined by 26% to value US$28.2 billion. The fall in FIA sales drove an overall decline in total fixed annuity sales which stand at US$27.8 billion, a 27% drop from the prior year. Year-to-date, total annuity sales total US$57.6 billion representing a 24% decrease from H1 19. Variable an
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