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A fundamental shift is underway in the life insurance and annuity industry—and it’s not just another market cycle.
2024 marked the third consecutive year of record-breaking annuity sales, surpassing $432 billion. This growth has been driven largely by the continued momentum in Registered Index-Linked Annuities (RILAs) and Fixed Indexed Annuities (FIAs).
But this surge isn’t being shared equally.
Led by Athene with $36 billion in sales, the top five carriers are pulling away from the rest. Equitable and Allianz, for instance, are each growing 20–25% year-over-year, while many others are struggling to keep pace.
I often hear this frustration from carriers:
“We’ve got same-day issue, solid tech, strong service… but our competitors are scaling 5x faster.”
The difference?
Execution at scale.
The Annuities Flywheel
The fastest-growing carriers aren’t just executing their strategy. They’re turning it into a compounding growth engine. I call it the Annuities Flywheel—a model built on three core levers:
1. Issuance at Scale
Think embedded annuities in target date funds, rapid product launches, and deep distribution ties.
2. Investment Strategy That’s Built Different
It’s not just about chasing yield. These carriers are ALM-driven, hedged, and generating alpha through private market allocations.
3. Capital Agility
Sidecars, reinsurance, and global capital structures give them the flexibility to redeploy capital quickly and confidently.
When these parts are synchronized, the flywheel gains momentum:
- Product agility fuels distribution
- Distribution enhances investment leverage
- Strong returns build capital confidence
- Capital enables faster innovation
And the cycle continues.
Table Stakes Are No Longer Enough
Good tech, smooth service, e-apps, and digital agent portals?
Those are the baseline now.
While some players stand out, many in the industry are just catching up. But even after achieving operational maturity, real growth comes from aligning product, capital, and investments in near real-time.
That requires:
- Dynamic pricing engines
- Predictive analytics integrated with ALM
- Frameless, API-enabled distribution infrastructure
- Cloud-native, event-driven architecture
Why Technology Still Gets in the Way
Too many insurers are stuck in siloed, legacy tech stacks. Core systems, investment platforms, and hedging engines often operate in isolation.
Without an integrated data fabric or event-driven architecture, the flywheel stalls before it starts.
Proof in the Numbers
Private equity-backed carriers—those who have embraced this model—now manage approximately $700 billion in assets and have grown from 1% to 13% of total market share since 2012.
This isn’t theory. It’s a blueprint for outsized growth that’s already being executed.
A Glimpse of What’s Next: TDFs + Annuities
BlackRock is embedding annuities directly into target date funds, allocating up to 30% to guaranteed income by age 65.
This represents a massive origination opportunity—if carriers can execute across pricing, risk management, and operations.
More on that in a future post.
Where Do You Stand?
If you’re looking to scale smarter—with modern technology, dynamic pricing, and bold capital strategies—let’s connect.
Because in this market, it’s not about who has the tools. It’s about who knows how to use them.
Sources:
- LIMRA Secure Retirement Institute, 2024 Annuity Sales Report
- Moody’s, “The Rise of Private Equity in Insurance,” 2023
- McKinsey & Company, “The Future of Annuities,” 2022
- BlackRock, “Introducing LifePath Paycheck: Lifetime Income in TDFs,” 2023
