Annuity Companies Hasten to Protect Their Bottom Line in the Wake of Market Conditions
From the Desk of Jim Eccleston at Eccleston Law LLC:
In the wake of the volatility in the market and other effects of the global pandemic, annuity suppliers are struggling to update their annuities – meaning make them more favorable because annuity purchasers received too good a deal the first time around. The market volatility and low treasury rate necessitate annuity repricing. In the current environment, changes are happening so fast that many insurance carriers have had to suspend the sale of annuities in order to give them enough time to make changes to the annuity policies.
One factor in annuity companies’ efforts to re-price annuities is the fact that the Federal Reserve has cut the interest rate to zero to 0.25%, matching the record low of 2008.
Annuities had been enjoying a spike in popularity. In 2019, sales of annuities in the U.S. totaled $241.7 billion, a 3% increase from 2018. Now it’s time to make annuities less attractive to
purchasers!
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
Related Attorneys: James J. Eccleston, Richard Ehrlich
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