When it comes to where insurance marketing efforts have fared most favorably, a new report suggests it lies with annuities.
According to LIMRA's 2011 U.S. Individual Annuities Sales survey, total annuity sales rose 8 percent in 2011 when contrasted with 2010, eclipsing $240 billion in total sales. That data represents 94 percent of the market, LIMRA notes.
Joseph Montminy, assistant vice president of annuity research at LIMRA, indicated that despite the strong returns, improvements can still be made.
"While we saw significant growth in the first half of 2011, third and fourth quarter annuity sales fell quarter-over-quarter, tempering the double-digit growth seen at the mid-year mark," said Montminy.
He added that in today's economic climate, annuity providers are carefully managing the risks associated with their guaranteed living benefit riders, which has affected overall sales trends. He also stated that with 42 million retirees currently residing in the U.S., a total that's projected to rise to 65 million in 2025, retirees need to establish a guaranteed source of income that they can rely on.
Agents should be sure to detail all the benefits of investing in an annuity with their insurance customers and how they can provide greater financial security during retirement.