What's Happening?
The insurance industry is experiencing significant growth in indexed annuity sales, particularly registered indexed-linked annuities (RILAs). These products allow investors to participate in stock-market-linked growth while limiting potential losses. RILA sales have reached record levels, with $19.1 billion in sales in the second quarter of 2025 and an 18% year-over-year increase in the first half of the year. The growth is attributed to rising interest rates, increased product offerings, and growing consumer awareness of annuities. Keith Golembiewski of LIMRA and LOMA highlights the industry's focus on simplifying these products for both financial professionals and consumers.
Why It's Important?
The continued growth of indexed annuities reflects a strong consumer demand for investment products that offer market-linked returns with reduced risk. This trend is significant for the insurance industry as it adapts to changing economic conditions, including market volatility and potential recessions. The popularity of RILAs indicates a shift in consumer preferences towards products that provide financial security without the risk of significant losses, making them an attractive option for retirement planning.
What's Next?
The insurance industry is expected to continue expanding its indexed annuity offerings, with a focus on simplifying product features and enhancing consumer understanding. As market conditions evolve, insurers will need to address potential challenges such as product saturation and economic volatility. The LIMRA 2025 Annual Conference will explore strategies for maintaining growth in indexed annuity sales, emphasizing the role of technology in simplifying product offerings and improving consumer engagement.
