BISA Magazine - Quarter 3, 2017 - 21

put to rest, for example. There should
be some clarity about the DOL rule by
November 2017, Montz said.

Banks and full-service national B/ Ds
saw a significant uptick in fixed annuity
business when compared to last
quarter," reports LIMRA.

In any event, the DOL rule isn't just an
FIA issue, Grensteiner adds; it affects
many financial products. Variable annuities, for example, are difficult to sell
amid the rule's uncertainty. "All sales
in the bank channel will suffer [until
the picture becomes clearer]", Grensteiner says.
American Equity also underwrites
multi-year guaranteed annuities
(MYGAs). MYGAs are more of a
transaction product and could be sold
by bank platform reps, says Varisco.
MYGAs resemble a bank CD in terms
of features. Once platform reps become
comfortable with them, they can often
grasp FIAs as well. But this remains an
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evolutionary process and depends a lot
on future rules and regulations, like the
DOL fiduciary rule.
What is the primary strength of the
bank channel in American Equity's view?
"The demographic most suitable for annuities is in the bank channel," says Stu
Bergoine, vice president of relationship
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9/18/17

management at the Eagle Life subsidiary. Banks often have customers
looking for safety and maybe some
income in the future, but they can't
afford to lose money in the stock
market. These customers are retired
or getting ready to retire. Indexed
annuities are often a good fit for
this demographic.

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Table of Contents for the Digital Edition of BISA Magazine - Quarter 3, 2017
