John Hanc*** discontinued all VA share classes except their B Share Venture Product.
AXA lowered the roll up to 5% from 6 % and raised fees by 5 bps to 85 bps.
Insurance companies are tweaking VA products (mainly decreasing benefits and increasing fees and/or discontinuing products) and more changes can be expected in May when providers release their new product prospectuses.
Please share with me any other specific product changes you’ve seen or heard about. thanks!
you have not sen anything yet, wait to May 1st. All Products are changing again, word is one major MGIB player is going to 4 growth and 3 pay out. At what point do the VA company’s price themselves out of business??
Please clarify. "They are not changing anything" or what? "Sentence is fragmented. Consider revising."
Talked to Pru today… they are changing anything…
Yeah I talked to them today and brought up the "rumor" that all major carriers are decreasing benefits and increasing costs.. They said no HD 7 will stay the same. Also mentioned MET and some other carriers are moving to the idea that they will move clients money into bonds also, but said IT is about 2 years to get up and running.
I use two Nationwide riders, the 5 year GMAB and the L-INC 10. The GMAB is now gone and the L-INC 10 rider fee has been raised to 90 bps.
Pretty soon it will be tough to keep an L-share with riders under 4% total fees.
JNL ditched their gmib rider all together. They will also not accept new money on existing contracts that have a gmib rider.
Just heard from Mass Mutual
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Given the impact of equity market volatility on the entire variable annuity category as well as consumer preference migrating toward fixed annuities, MassMutual has suspended the sale of the Guaranteed Minimum Income Benefit 5 and Guaranteed Minimum Withdrawal benefit (MassMutual Lifetime Payment Plus) features formerly available with the MassMutual Transitions Select and MassMutual Evolution variable annuity contracts. The features were suspended March 31. This suspension in no way impacts current customers who have purchased these products and features.
This decision keeps MassMutual well positioned with the capital strength necessary to succeed in this challenging market environment and meet the needs of all its customers. In times like these, we must actively manage both capital usage and cost controls to assure our continued capital strength and this step is appropriate in that context.
Met dropping rollup on GMIB from 6% to 5% May 4th…ING raising cost on Max 7% DB to 2.10 AND lowering max issue age to 69…Allianz temp discontinued ALL living benefits (GMAB and GMWB)…Ohio National dropping GMIB from 6% to 5% middle of May…Pru increasing costs on GRO riders and roll up DB’s…Nationwide raising costs on LINC 10 to 100 bps (120 bps for Joint) and lowering age bands…