Annuities gained traction in 2020 amid a historically low interest rate environment with investors leaning towards registered index-linked annuity (Rilas) over fixed-indexed annuities (FIAs). Now a shift towards annuity products linked to proprietary & custom underlyings is on the rise.
According to John R. Charles ( pictured ), director of annuity products at multi-issuer platform Luma Financial Technologies, many of the most commonly used indices in FIAs and Rilas are primarily domestic large-cap underlyings. However, the market is opting increasingly for custom indices as they can typically come with higher caps, and higher participation rates for annuity products. We're integrating the annuity product set completely into the structured products experience “