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Q: Equity Indexed Annuitties ( Answered,   0 Comments )
Subject: Equity Indexed Annuitties
Category: Business and Money > Finance
Asked by: brianr_afmus-ga
List Price: $200.00
Posted: 28 Oct 2005 13:16 PDT
Expires: 27 Nov 2005 12:16 PST
Question ID: 586138
I am looking for a source for information regarding Equity indexed
annuitties and their current outlook from both an industry prospective
and also from the prospective of the end client. We are willing to buy
an industry research paper or report but public/free information
sources are  of primary interest.

Some links that we have been using...

Request for Question Clarification by pafalafa-ga on 28 Oct 2005 14:19 PDT

Hello there.  I'd be glad to help you out on this, but it would help
me to understand a bit more about what you're after.

There's no shortage of information -- free or otherwise -- on indexed
annuities.  For instance, take a look at these search results:


which highlights a few books on the topic (near the top of the page),
along with a ton of web-based materials.

This second link highlights more "white paper" sorts of materials:

"indexed annuities" OR "indexed annuity" OR "index annuity" OR "index
annuities"  -indexannuity -amfus pdf

I realize that you're not looking for an answer that is a single link
or two to a zillion sites.  But if you could look over a few of the
results from the above links, and let me know what seems valuable to
you, and what seems worthless, it would give me a better feel for what
you're after.

Looking forward to your reply.

Subject: Re: Equity Indexed Annuitties
Answered By: nancylynn-ga on 29 Oct 2005 22:23 PDT
Hello Brian:

Not surprisingly, the most current comprehensive information is
available only at a fee, but I did find a great source, HighBeam
Research, that will allow you to read some of these articles at no
charge after you sign up for a *free* trial membership.


The table of contents for NAVA's [ National Association for Variable
Annuities]  2005 "Annuity Fact Book" can be seen here:

Chapter One includes "Annuity Industry Total Sales of Equity-Indexed
Annuities." Chapter Ten focuses on  "DEMOGRAPHICS OF A TYPICAL OWNER."
There's also lots of information on "Fixed Annuities," including the

You can order a copy of the book at NAVA's site:
for either $25 or $50, depending on whether you're a member of NAVA.

"Gauging the Equity-Indexed Annuity as Competition and Complement to
the Variable Annuity Market," a study conducted by FRC (the Financial
Research Corporation):

From the Abstract on this study, which was published on May 6, 3005:
This study " . . . provides a detailed analysis of the EIA industry,
including growth drivers, product development, marketing &
distribution strategies, and the long-term outlook for EIAs. The
study, developed in conjunction with Beacon Research, also features
insights gleaned from FRC's interviews with leading industry

Click on the PDF link to read an overview and the index of chapters.
Also click on the PDF link for the brochure on this article.

This report is available for purchase -- but the tough part is
figuring out how to buy it! Apparently, you have to open an account
with FRC at this site, then either arrange for a subscription, or
arrange to buy only the reports you want.

Here's an April 2005 press release regarding the release of that report:'equityindexed%20annuities%20AND%20current%20industry%20trends'

"In this comprehensive study . . . FRC examines the growth of
equity-indexed annuities, how the products work, why they are selling,
and why not all insurance companies are embracing them. The study also
provides analyses of the potential impact on sales of variable
annuities, emerging parallels to the variable annuity industry, and
the positioning of variable annuities and equity-indexed annuities as
part of a holistic financial plan.

"Findings are based on EIA trends data developed by Beacon Research,
supported by FRC?s candid interviews with leading industry executives
on the current and future state of the EIA market."

At the top right of that page see contact information for a Lisa R.
Plotnick: Phone: 617-824-1287; e-mail:

I assume Ms. Plotnick can help you order a copy of this study. For the
life of me, I can't figure out how you go about obtaining a copy! If
you have any trouble, post a "Request For Clarification," and I'll try
contacting the company, too.


"Equity Indexed Annuities Achieve Breakthrough Year," from, published March 26, 2005: 

"A.M. Best Special Report: Equity-Indexed Annuities ? Risks Revisited"

"A.M. Best Co. remains cautious on the equity-indexed annuity segment
due to its thin profit margins and management challenges during the
continuing low-interest-rate environment. Nonetheless, A.M. Best
believes that some equity-indexed annuity writers have weathered the
interest-rate and investment challenges better than others."

"Nonsubscribers can download a PDF copy of the full special report (8
pages) for $50 or a combination of the PDF copy plus the spreadsheet
file of the report data for $100 from our Website at BestWeek. Call
customer service for more information, (908) 439-2200, ext. 5742."

" Equity indexed annuities driving fixed annuity sales. (Industry
Stats)," by Dan Q. Beatrice, National Underwriter Life & Health,
published January 3, 2005, archived HighBeam Research:

(You can read this article by registering for a free trial at
"A Notice Concerning Equity-Indexed Annuities," by Donald Moine,
September 22, 2005, Morningstar:,8832,4202,00.html

This editorial references a story I've seen mention of at several
sites: NASD recently urged sellers of non-SEC registered EIAs to
rethink guidelines for selling such products. Here's the link to
NASD's May 2005 announcement:

"Equity-indexed annuities offer a chance to invest without risk," by
Matthew W. Brown, Houston Business Journal, October 29, 2004:

"Many are flocking to safer alternatives to avoid losing any more of
their retirement nest eggs . . . EIAs were intended for the cautious
investor. . . .

" . . . Often, consumers see the value in EIAs because they understand
that in the past, the stock market has been a great place to grow
their money. However, they don't want to expose all of their assets to
the risk that is associated with the stock market. They use EIAs for
the 'safe portion' of their assets in order to achieve higher returns
without the risk. . . .

" . . .It's interesting to hear investors talk about how happy they
were when their EIAs investments returned 0 percent in the years 2000,
2001 and 2002. As backwards as that sounds, most people are thrilled
that their principle was protected during those years. Many agree that
giving up some of the upside is worth it when all of their downside is
"Equity-indexed annuities poised for growth; Higher inflation sparks
their popularity," by Gary S. Mogel, Investment News, published
June13, 2005, archived at HighBeam Research:

"Survey Finds Some Surprises In Equity-Indexed Demographics," by
Cynthia Dibiase, National Underwriter Life & Health-Financial Services
Edition, January 3, 2000, archived at HighBeam:

I realize this study is five years old, but it's the most
comprehensive consumer study I could find on this topic.

The Abstract: "Since equity-indexed annuities first started to gain
widespread popularity in 1995, insurance carriers have been interested
in the makeup of the typical equity indexed annuity buyer.
Specifically, they have wondered if the equity-linked products have
attracted a different customer base than for more traditional,
declared-rate fixed annuities.

"Since 1994, our firm has studied the changing demographics of this
market segment. We recently commissioned a survey of 16 carriers that
represent combined sales of nearly two-thirds of last year's estimated
$4 billion equity-indexed . . ."

Also see: "On the verge: equity indexed life insurance has been around
for a decade in the United States. It finally may be poised for a
breakout," by Ron Panko, Best's Review, August 1, 2005, archived at

Related to my earlier reference to the recent NASD warning:

"Equity-indexed annuities scrutinized," by Kathy Chu andJohn Waggoner,
USA TODAY, August 11, 2005:

"EIAs: Behind the Hype: Equity-indexed annuities are flying off the
shelves, but they carry risks that regulators fear are not fully
disclosed," by Joan Warner, Financial Planning, October 10, 2005,
archived at HighBeam:

Search Strings:

Equity Indexed Annuities AND current outlook AND perspective
Equity Indexed Annuities AND outlook OR forecast
"equity indexed annuities" AND industry outlook
Equity Indexed Annuities + trends +projections 
Equity Indexed Annuities AND trends OR projections AND consumers OR clients
Equity-Indexed annuities +demographics +2004 +2005
fixed-income annuities +demographics +2004 +2005
equity-indexed annuities AND trend  OR projection AND 2005 OR 2006
equity-indexed annuities AND consumer demographics

I hope my research is of help to you. If you have any trouble
navigating any of the above links, please post a "Request For
Clarification," and I will assist you.

Best regards,
Google Answers Researcher
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