Panellists examined the challenges of developing, assessing and explaining increasingly complex index-linked annuities, from long development cycles to renewal terms and the limitations of back-tested returns.
Adding an index to a fixed indexed annuity (FIA) can cost an insurer roughly US$1m a year, while introducing a new payoff may cost US$3m and developing a new product US$7m to US$8m. This is according to Tom Haines, executive VP of capital markets and index solutions at Annexus. Haines spoke at an SRP Americas 2026 masterclass on indexed annuity product development, saying the sums reflect the work involved in state filings, actuarial analysis, pricing and preparing products for distribution. De