By John Hilton
Concerns over how much disruption to introduce to the thriving market for indexed-linked variable annuity products dominated a regulator subgroup call today.
The Indexed Linked Variable Annuity subgroup is attempting to tweak nonforfeiture rules to better fit the unique ILVA products, also known as registered indexed-linked annuities or structured annuities.
The subgroup developed an actuarial guideline for technical changes to ILVA values that would bring the products in line with traditional VAs. Industry groups suggested several changes and are most concerned with disruption to markets.
“CUNA Mutual has been serving consumers in the ILVA space for over eight years and our experience shows ILVAs are an incredibly impactful tool in helping middle market customers create guaranteed retirement income,” wrote David Hanzlik, vice president, annuity and retirement solutions for CUNA. “We take pride in helping those who make a modest income.”
But Birny Birnbaum, executive director of the Center for Economic Justice, questioned why regulators would accommodate continued sales of products they deem problematic for consumers.
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