Growth in Sales for Variable Annuities
Over the past three years, variable annuities have sold close to £1bn. This may now increase with the addition of new products that are on the verge of entering the market. Sales of this type of annuity reached £947.5m in the UK.
When comparing them to the year 2009, the sales of the variable annuities fell nine per cent. The number of policies that were being sold in the same time frame fell 14 per cent.
Variable annuity sales then increased for five consecutive quarters when the third quarter showed low sales in 2009. During the second part of 2010, annuity sales reached £502.8 million which was 13 per cent more than the first part of the year.
2011 could be the year that variable annuities will grow in sales. These annuities are now becoming available in pensions and as investment bonds.
Last year brought about many changes to the area of pensions. This means that there are new products for the variable annuities that will be coming out. There has also been a new provider that has entered the market to sell these new products for the variable annuities.
With this in mind, this could mean that with the new provider and new products that are coming out will mean increased sales. This will be something that consumers and advisors will want to be aware of. This will broaden their options for the annuity market. Changing times means financial changes as well.