U.S. retail annuity gross sales proceed to develop, however gross sales of 1 sort of product that has been particularly in style — the multi-year assured annuity contract — are cooling.

Whole particular person annuity gross sales elevated to $80 billion within the second quarter, up 9.6% from whole for the second quarter of 2022, based on new annuity issuer gross sales survey information from Wink.

Total development was down from 42% within the first quarter, partly as a result of the speed of development for MYGA gross sales dropped to 16%, from 173%. MYGA gross sales dropped 24% between the primary quarter and the second quarter, to $30 billion.

Some insurance coverage firm executives have expressed considerations about MYGA market rationality.

Gross sales of non-variable listed annuities, which provide decrease assured charges however the potential for holders to earn greater charges, elevated, each compared the primary quarter of this yr and the second quarter of 2022.

Sheryl Moore, the CEO of Wink, contends that MYGA gross sales are nonetheless remarkably sturdy however mentioned in an e-mail interview that insurers’ views about pricing could possibly be affecting the market. “I positively imagine there are some loss-leader merchandise being marketed proper now,” she mentioned. “Competitors is fierce.”

What It Means

Shoppers could also be warming as much as the concept of accepting extra threat in alternate for the prospect to earn greater charges.

Many life insurers, in the meantime, appear to need to keep away from competing head-to-head with the insurers providing your shoppers one of the best MYGA offers.

Particulars

Wink primarily based the second-quarter annuity gross sales figures on information from 124 annuity issuers.