Fixed and Fixed Indexed Annuity Complaints Have All But Disapeared
Fixed and fixed indexed annuity complaints have all but gone away in recent years. If you go back to 2007 one carrier that starts with an "A" had around 35 complaints in Colorado (the state I live in) and this year none. Although not as drastic, other carriers have seen their complaints greatly decrease or disappear completely. How is that possible with fixed and fixed indexed sales increasing?
Suitability requirements have greatly increased. As Bill Broach always says, "The more suitability regulations the better."
State required annuity continuing education courses have become commonplace, requiring agents to have more education about the products they sell. I have always said that the barriers to entry in this business are way too small. I believe a license requirement closer to what is required in the securities industry would be a huge improvement as long as it was state department of insurance regulated.
Emphasis on guarantees have become the emphasis of the indexed annuity sale. In an environment of decreasing caps agents have been forced to focus on the core benefits of fixed indexed annuities rather than pushing market participation hype. While market participation can be significant at times, this should never be the primary purpose for purchasing a fixed indexed annuity. Preservation of gains and/or lifetime income are the two reasons to buy an indexed annuity.