Inforce Renewal Rates

[Sheryl J Moore]

An agent told me that both Oceanview and Pac Life have reduced inforce renewal rates on their indexed annuities.

Can anyone validate this? Curious...

 

[Tahoe Ray]

An agent told me that both Oceanview and Pac Life have reduced inforce renewal rates on their indexed annuities.

Can anyone validate this? Curious...

No idea on Pac but Oceanview will straight up tell you that the first-year rate on the S&P p2p cap is first year only and WILL go down (not maybe) but that they're going to try to keep the renewal very competitive with the market.

 

[Sheryl J Moore]

No idea on Pac but Oceanview will straight up tell you that the first-year rate on the S&P p2p cap is first year only and WILL go down (not maybe) but that they're going to try to keep the renewal very competitive with the market.

"Competitive with the market"= dropping rates. That is about par for the course with the independent agent distribution, when it comes to indexed annuities. Thanks, Ray. This is a good lead.

 

[scagnt83]

Pac Life currently has a product that locks in Caps/rates for the entire term. I noticed it the other day. Interesting product with competitive rates.

 

[Sheryl J Moore]

Absolutely right. There are a few dozen other products that guarantee their rates for the surrender charge period as well. That's a big risk to the insurer, so don't count on wide adoption!