Customers, prospects and annuity providers are facing complexities in terms of retirement planning and annuity investments.
- While customers are exploring retirement investment vehicles, they lack an understanding of their nuances and benefits.
- This makes them prone to becoming victims of frauds by having been made to pay higher commissions and surrender fees and buy products unsuitable for them.
- Furthermore, the annuity customers may lose track of their retirement investments such as 401(k)s, IRAs and annuities, find it difficult to manage multiple retirement accounts, or update their addresses in all existing accounts.
- The growing incidents of account takeover frauds have further affected both annuitants and annuity providers.
- Competition from insurtechs and other start-up firms that offer high-value, low-friction experiences using digital-first asset-light models is also a challenge for L&A providers worldwide.